IPSASB Proposes a Draft Strategy on Accrual-based Workplan

The International Public Sector Accounting Standards Board (IPSASB) is seeking views on its draft strategy and plan for the period 2019-2023, with increasing focus on adopting accruals-based accounting and standards so that to strengthen financial management of public sector globally.

The representatives of IPSASB have said that the standard-setting body is focused on developing IPSAS as well as quality reporting guidance for the organizations in the public sector, and also providing awareness regarding IPSAS and the benefits associated with adoption of accrual-based accounting.

In order to develop standards on addressing important areas in the public sector accounting, the IPSASB has proposed to undertake at least three new projects specific to the public sector. This has been proposed to account for differential reporting, natural resources and discount rates.  

The IPSASB also plans to continue to converge with IFRS, where it will be appropriate, and also plans to co-operate with other standard-setting bodies to promote the adoption of IPSAS and to emphasize the need and importance of using accrual-based accounting information for the purpose of strengthening financial management of public sector organizations.

The IASB Chairman, Ian Carruthers, said that the IPSASB will continue to maintain its focus on establishing new standards for addressing financial reporting issues specific to the public sector.

He also said that the draft strategy also highlights the importance and need of the IPSASB working with other accounting standard-setters to make sure that the benefits associated with the IPSAS implementation are more widely spread and understood.

The consultation with regards to developing International Public Sector Accounting Standards closes on June 15, 2018