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:

 Main differences of Consolidated and Separate Financial Statements as per relevant IFRS and IPSAS

Please just give me keypoints for presentation preparation.

thanks

Answer 1

International Public Sector Accounting Standard (IPSAS) are a set of accounting standard issued by the IPSAS Board for use by public sector entities around the world in the preparation of financial statements. These standard are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

Objective:

IPSAS aims to improve the quality of general purpose financial reporting by public sector entities, leading to better informed assessment of thr resource allocation decisions made by governments, thereby increasing transparency and accountability.

Scope:

IPSAS are accounting standards for application by national governments, regional (eg. state, provincial, territorial) governments, local governments and related government entities. IPSAS standards are widely used by intergovernmental organization. IPSAS do not apply to government business enterprises.

IPSAS are based on the International Financial Reporting Standards (IFRS), formerly known as IAS. IFRS are issued by the International Accounting Standards Board (IASA). IPSASB adapts IFRS to a public sector context when appropriate.

IPSAS has 38 standards on the accrual basis of accounting and one standard on the cash basis of accounting.

Difference of Cosolidated and separate Financial Statement as per IFRS and IPSAS are:

IFRS outlines the requirements for the preparation and presentation of cosolidated financial statements, requiring entities to consolidate entities to controls. Control requires exposure or rights to variable returns and the ability to affect those returns through power over an investee.

IAS outlines when an entity must consolidate another entity, how to account for a change in ownership interest, how to prepare separate financial statement and related disclosure.

IFRS was issued in May 2011 and applies to annual periods beginning on or after 1 January 2013.

IAS was reissued in January 2008and applies to annual periods beginning on or after i July 2009.

In IAS 27 the financial statements of a group presented as those of a single economic entity whereas IFRS 10 the financial statement of a group in which the assets, liabilities, equity, income, expenses and cash flow of the parent and its subsidiaries are presented as those of a a single economic entity.