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170609 CIGAR Future of IPSASs - Já conhece? - IPCAweb.ipca.pt/cigar/presentation/170609 CIGAR...
Transcript of 170609 CIGAR Future of IPSASs - Já conhece? - IPCAweb.ipca.pt/cigar/presentation/170609 CIGAR...
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The future of IPSASs
Ian CarruthersIPSASB Chair
CIGARPorto9th June 2017
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• Independent Standard Setting Board under auspices of IFAC• Executive Chair (75% WTE)• 17 other volunteer board members from around world• Toronto-based – Secretariat of 8• Independent governance (PIC) and advisory arrangements (CAG)• 35 IPSASs (accrual basis) covering main areas of government
activity, 1 cash basis standard as ‘stepping stone’ to accrual• 3 Recommended Practice Guidelines (RPGs)• Public Sector Conceptual Framework
The IPSAS Board and its outputs
2
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IPSASs development - Phases to date
1997 - 2001• IFAC PSC starts IPSAS development programme• First 21 IPSASs based on IASB equivalents, interpreted as necessary
2002 - 2009• Development of first public sector specific IPSASs (22 - 24)• IFRS convergence (IPSASs 25 – 32)• Start of Conceptual Framework project
2010 - 2015• First Time Adoption & IFRS convergence maintained (IPSASs 33-38)• First public work plan consultation• Conceptual Framework completed 2014
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Public Sector Conceptual Framework
Preface - Characteristics of the Public Sector that influence Public Sector Accounting
Non-exchangeTransactions
Role of theapprovedBudget
LongevityCharacteristics of Assets/Liabs
Role asRegulator
GovernmentFinance Statistics
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IPSASB Strategic Objective
Strengthening Public Financial Management and knowledge globally through increasing adoption of accrual-based IPSASs by:
• Developing high-quality financial reporting standards
• Developing other publications for the public sector
• Raising awareness of the IPSASs and the benefits of their adoption
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Current IPSASB work programme:Key projects 2016 - 2018
Project Public sector specific
IFRS convergence
Social Benefits ü
Revenue & Non-Exchange Expenditure ü ü
Heritage ü
Leases ü
Financial Instruments ü ü
Public Sector Measurement ü
Infrastructure Assets (starting September 2017) ü
Cash Basis IPSAS (limited-scope update) ü
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IPSASs implementation – Position in 2015
Still great diversity in current central government accounting landscape
Source: PWC Global Survey on Accounting and Reporting by Central Governments (2nd edition)
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IPSASs implementation - Future plans
But the 5-year trend toward accrual accounting is clear………
Source: PWC Global Survey on Accounting and Reporting by Central Governments (2nd edition)
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• Complexity of PFM landscape• Coordination with other stakeholders? • Relative balance between:
– Addressing public sector-specific issues– Maintaining (increasing?) IFRS convergence– Improving financial reporting communication– Promoting accrual-based information usage
• Board’s role in relation to adoption and implementation?• How do these demands fit with available resources?
2019-2023 Strategy / Work Plan
IPSASB Challenges
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IPSASB‘s Current Strategic Objective
Strengthening Public Financial Management and knowledge globally through increasing adoption of accrual-based IPSASs by:
• Developing high-quality financial reporting standards
• Developing other publications for the public sector
• Raising awareness of the IPSASs and the benefits of their adoption
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1) Setting standards on public sector specific issues:– 2014 consultation topics not on current Plan e.g. Natural resources– Additional 2016 PSSSF suggestions e.g. Differential reporting (‘IPSAS-lite’)
– Further potential projects emerging from EPSAS topic papers– Other Board and stakeholder suggestions
2) Maintaining IFRS convergence:– ‘Mixed group’ consolidation inconsistencies due to outstanding IPSAS / IFRS
differences where no public sector-specific reasons preventing convergence – ‘Catch-up’ opportunity created by IASB 2017-2021 Work Plan focus on completion of
remaining standard-setting projects– Split into major standard-setting projects, narrow-scope maintenance projects, and
minor improvements
– Work with national standard setters on narrow-scope projects / minor improvements?– Conceptual Framework (CF) limited scope review to consider relevance of IASB CF
changes since 2014
2019-2023 Strategy / Work Plan
Potential Strategic Themes (1)
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3) Improving financial reporting communication:– Common challenge across sectors– Consider applicability of IASB work e.g. Disclosure Initiative (materiality and disclosure)
– Potential links with other initiatives - <IR>, Corporate Reporting Dialogue? – PFM context and links (e.g. Service performance)
4) Promoting accrual-based information usage:– Opportunities to address key areas of GFS divergence?
– Participate in guidance development by IMF and WB e.g. use of balance sheets?– Raising awareness among ratings agencies and civil society groups?
5) Supporting IPSASs adoption and implementation:– IPSASB role limits, and roles of other key players in strengthening PFM– Role / adequacy of IPSASs Application and Implementation guidance?
– Update or replacement of Study 14?
– Need for interpretations capability?
2019-2023 Strategy / Work Plan
Potential Strategic Themes (2)
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Developing the next IPSASB Strategy and Work Plan
Multi-year Strategy (2019-2023), Work Plan to implement/operationalize Strategy
PIC advice
CAG input
Public consultation 2018
Stakeholder outreach 2017
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Questions, discussion & further information
• Visit our webpage http://www.ipsasb.org/ • Or contact us by e-mail :
IPSASB Chair: [email protected] Director: [email protected]