Our Involvement

International Activities

International Public Sector Accounting Standards Board (IPSASB)


Outstanding IPSASB Exposure Drafts

One of the Board's goals is to harmonise with other standard setters in establishing generally accepted accounting standards. To that end, the CEO of the Board represents South Africa on the International Public Sector Accounting Standards Board.


The approach taken in developing International Public Sector Accounting Standards (IPSASs) is to consider the applicability of the private sector International Financial Reporting Standards (IFRSs) (issued by the International Accounting Standards Board (IASB)) to financial reporting in the public sector, and to:

• evaluate their relevance;
• review their language and terminology; and
• assess the extent to which they should be applied to public sector entities using cash or accrual accounting.

In brief, as far as possible, changes are only made to IFRs for public sector-specific reasons.

Consequently, IPSASs to date have been primarily based on IFRSs. Issuing IPSASs is part of a multi-year standard-setting initiative providing recommended accounting standards and guidance for better decision making, financial management and accountability by governments.

Through the above process, public sector-specific issues are identified. For example, IAS 18, Revenue (and the resulting IPSAS 9, Revenue from Exchange Transactions), only considers revenue arising from exchange transactions. A Standard on the recognition of revenue arising from non-exchange transactions such as taxes, transfers and fines is important for governments and their agencies. Consequently, a working group has been created to address these issues. The ASB CEO and South Africa’s representative is a member of this committee.

As public sector-specific issues are identified, they are noted for inclusion in the work program.


International Public Sector Accounting Standards — Accrual Accounting

21 IPSASs have been issued, representing a significant step in strengthening financial reporting by governments globally.

• IPSAS 1 — Presentation of Financial Statements
• IPSAS 2 — Cash Flow Statements
• IPSAS 3 — Net Surplus or Deficit for the Period, Fundamental Errors and Changes in Accounting Policies
• IPSAS 4 — The Effects of Changes in Foreign Exchange Rates
• IPSAS 5 — Borrowing Costs
• IPSAS 6 — Consolidated Financial Statements and Accounting for Controlled Entities
• IPSAS 7 — Accounting for Investments in Associates
• IPSAS 8 — Financial Reporting of Interests in Joint Ventures
• IPSAS 9 — Revenue from Exchange Transactions
• IPSAS 10 — Financial Reporting in Hyperinflationary Economies
• IPSAS 11 — Construction Contracts
• IPSAS 12 — Inventories
• IPSAS 13 — Leases
• IPSAS 14 — Events After the Reporting Date
• IPSAS 15 — Financial Instruments: Disclosure and Presentation
• IPSAS 16 — Investment Property
• IPSAS 17 — Property, Plant and Equipment
• IPSAS 18 — Segment Reporting
• IPSAS 19 — Provisions, Contingent Liabilities and Contingent Assets
• IPSAS 20 — Related Party Disclosures
• IPSAS 21 — Impairment of Non-Cash-Generating Assets

International Public Sector Accounting Standards — Cash Accounting
Cash Basis IPSAS: Financial Reporting Under the Cash Basis of Accounting, deals with financial reporting under the cash basis of accounting. It establishes requirements for the preparation and presentation of a statement of cash receipts and payments and supporting accounting policy notes. It also includes encouraged disclosures that enhance the cash basis report.

Standards Project — Other Guidance

Study 11 — Governmental Financial Reporting: Accounting Issues and Practices assists governments in the preparation of their financial reports. It contains a detailed description of the common bases of accounting used by governments and provides examples of actual financial statements prepared under each basis.

Study 12 — Perspectives on Cost Accounting for Governments assists government financial aid officers and other government accountants in developing and implementing cost accounting. Although not an in-depth study on cost accounting, it provides governmental perspectives of cost accounting not available elsewhere.

Study 14 — Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities, 2nd Edition (December 2003), presents key issues to be addressed in moving from cash accounting to accrual accounting. It also discusses approaches that can be used for efficient and effective implementation.

Updates regarding the status of the PSC projects can be found on the PSC website.