IPSASB Publishes Preliminary Preface to Forthcoming Public Sector Conceptual Framework
Recently a preliminary preface has been published by the IPSASB which is the International Public Sector Accounting Standards Board. This publication is based on the conceptual framework related to the public sector. This preface was published with a specific purpose. It was mainly aimed at highlighting the major characteristics of public sector which could be influential in looking after the development of the organization. Along with IPSASB, this preface also includes the working and supervision of the performance of RPGs by public in both general and particular perspectives. There are many activities which have been pointed out in this report. The key role of this published preface is regarding the identification of those areas which approach the working of private sector in the department of financial reporting.
The title of this document published by IPSASB has been entitled as Preliminary Board View and it serves as the general preface to the general purpose financial reporting done by the public sector departments. This preface indicates and identifies the major objective of public sector departments so that they can deliver the services to public. In this way the exercise of making profits and generating a return on equity will be discouraged.
There are certain important points and characteristics which are included in the preface. The most important of these points include the discussion about financial significance of the non exchange transactions. Sometimes involuntary transfers also take place which includes the collection of taxes. Thereby a positive reinforcement will be experienced by the positive activities like accountability of financial reporting with special objectives. This preface also highlights the importance of approved budget and its impact on financial background of the state. Furthermore, information related to comparison of revenues, actual spending and investment and surplus obtained will also be discussed in detail. The budget estimates are very helpful in making proper estimates of surplus and deficit income.
Another important perspective discussed in this preface is the nature of assets present in the public sector. Correct and effective evaluation of nature and purpose of these assets helps in providing services related to cash flows and generation.