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From principles to practice - Second edition

IPSAS in a nutshell From principles to practice

Second edition

www.pwc.com

Authors Patrice SchumeschAnton De GreefJan De Laet

Volume 14 About 260 pages to guide your understanding of current developments in public sector accounting and explain key accounting and operational implications of IPSAS adoption.

3 Includes practical tips and comments derived from the authors’ extensive experience in applying IPSAS.

5 200 questions and answers with two levels of diffi culty to test your IPSAS knowledge.

1 Written for practitioners and non-practitioners, government offi cials and other public sector decision-makers, and for all those interested in the public accounting debate.

2 Clear, concise, and easy to read.

9 789082 010909

ISBN 978-90-82010-909

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Table of contentsForewords 4

Authors 6

PwC contributors 8

Table of contents 9

Introduction 13

Part 1: The international context 21

Chapter 1 - IPSAS rule making 23 Chapter 2 - Towards a new era in public sector accounting 28

Part 2: Cash basis IPSAS 35

Chapter 3 - IPSAS under the cash basis of accounting 37

Part 3: General 43

Chapter 4 - Conceptual framework 45 Chapter 5 - Financial statement discussion and analysis 53 Chapter 6 - Reporting service performance information 55 Chapter 7 - Reporting on the long-term sustainability of public finances 59 Chapter 8 - Accounting policies, changes in accounting estimates and errors 62 Chapter 9 - IPSAS and the statistical basis of financial reporting 64

Part 4: Financial statements 67

Chapter 10 - Presentation of financial statements 69 Chapter 11 - Cash flow statements 81 Chapter 12 - Segment reporting 84 Chapter 13 - Related party disclosures 87 Chapter 14 - Presentation of budget information 89 Chapter 15 - Disclosure of financial information about the general 95

government sector

Part 5: Assets 99

Chapter 16 - Intangible assets 101 Chapter 17 - Property, plant and equipment 106 Chapter 18 - Borrowing costs 116 Chapter 19 - Investment property 118 Chapter 20 - Heritage assets 120 Chapter 21 - Leases 122

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Chapter 22 - Impairment of long-term assets 128 Chapter 23 - Inventories 134 Chapter 24 - Construction contracts 138 Chapter 25 - Financial assets 142

Part 6: Liabilities 151

Chapter 26 - Employee benefits 153 Chapter 27 - Social benefits 163 Chapter 28 - Provisions, contingent liabilities and contingent assets 165 Chapter 29 - Financial liabilities 170

Part 7: Financial performance 177

Chapter 30 - Revenue from exchange transactions 179 Chapter 31 - Revenue from non-exchange transactions 183 Chapter 32 - Expenses 190

Part 8: Consolidation 195

Chapter 33 - General consolidation principles 197 Chapter 34 - Public sector combinations 206 Chapter 35 - Interests in joint ventures 208 Chapter 36 - Investments in associates 215 Chapter 37 - Translation of financial statements of foreign operations 218

Part 9: Other topics 221

Chapter 38 - Foreign currency transactions 223 Chapter 39 - Financial reporting in hyperinflationary economies 225 Chapter 40 - Events after the reporting date 227 Chapter 41 - Agriculture 229 Chapter 42 - Hedge accounting 231 Chapter 43 - Concession arrangements and 233 public to private partnerships (PPPs)

Part 10: Making the change to IPSAS 237

Chapter 44 - First-time adoption of accrual basis IPSAS 239 Chapter 45 - Practical aspects of an IPSAS conversion 249

Appendices 255

Appendix 1 - Abbreviations used in this publication 257 Appendix 2 - IPSAS standards and RPGs 259 Appendix 3 - References 261

Table of contents

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