CIPFA and IFAC announces the Launch of Public Sector Financial Accountability Index

At the Chartered Institute of Public Finance and Accountancy (CIPFA)’s 2017 Annual Conference and Exhibition held in Manchester, UK, the International Federation of Accountants (IFAC) along with CIPFA announced the launch of their joint initiative with the name of public sector financial accountability index. This index will provide an accurate and clear picture regarding the quality of public sector financial reporting with the global perspective in mind.

The index has been developed by CIPFA jointly with IFAC as part of IFAC’s Accountability. Now. initiative. The Index aims to provide true and clear picture of the extent of accrual accounting and the adoption IPSAS.  As per the representatives of the two professional bodies the index is also aimed at providing information and better understanding of budgeting and accounting reform plans.

The main output of the index is expected to feature a regularly updated country-by-country public database. It is expected that initially the database will be focused on central government, and will expand with time to incorporate data and research regarding state/provincial and local government.

The index is expected to initially include research data focusing on individual countries and regions. The research data that will feature on the index will be the one that is collected by well reputed and recognized international institutions. National standard setting institutions will be invited by the IFAC and CIPFA to provide their opinions and suggestions after which the first set of data that are to feature on the index will be made available in November of this year.

Rob Whiteman, the CEO at CIPFA, said that quality accrual-based information provides the true and clear view of a government’s finances and its funding transactions and commitments. This will aid in establishing a strong foundation for public financial management.