Question

Like International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) also play important role to foster transparency and promote public trust. Applicable to public sector accounting and financial reporting, the IPSAS are, for the most part, based on the IFRS. It is expected that, by the time, IPSAS will be eventually converged with IFRS. This is to ensure that the financial reports generated by the private and the public sectors are comparable in terms of accounting for similar types of transactions.
Required:
In view of above and considering yourself as a Management Accountant, give a presentation on the above topic covering the following points:
 An introduction of International Public Sector Accounting Standards (IPSAS) Board
 Key differences of IFRS and IPSAS

Please just give me data and key points for presentaton preparation.

Thanks

Answer 1

INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS BOARD AIMS TO BRING UNIFORMITY AND ENHANCE THE FINANCIAL REPORTING SYSTEM AND PROCEDURES OF PUBLIC SECTOR ENTITIES I.E NON-REPORTING ENTITIES AT A WORLDWIDE LEVEL.THE BOARD IS RESPONSIBLE FOR DEVELOPMENT OF INTERNATIONAL PUBIC SECTOR ACCOUNTING STANDARDS SO THAT IT CAN BE USED BY GOVERNMENTS AND VARIOUS PUBLIC SECTOR VENTURES THROUGHOUT THE WORLD.THE ULTIMATE AIM OF THIS BOARD IS TO INCREASE EFFICIENCY OF PUBLIC SECTOR ENTITIES THROUGHOUT THE WORLD BY SUGGESTING THEM HIGH QUALITY STANDARDS.

SOME BASIC DIFFERENCE BETWEEN IFRS AND IPSAS

-THE MOST IMPORTANT IS THE AREA OF INCOMEAS PER TAX.SINCE IPSAS RELATES TO PUBLIC SECTOR WHICH ARE EXEMPT FROM INCOME TAX.THEREFORE THERE WILL BE NO CONCEPT OF INCOME TAX IN IPSAS LIKE IFRS.

-AS PER IPSAS PUBLIC SECTOR ENTITIES OPERATES WITH SERVICE MOTIVE AS COMPARED TO PROFIT MOTIVE IN CASE OF OTHER ENTITIES.HENCE APPLICABILITY TO PREPARE FINANCIAL DATA AS PER IFRS WILL NOT BE THERE IN CASE OF PUBLIC SECTOR ENTITIES.

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