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Interpretation and Application of IPSAS

Book Description

Clear, practical IPSAS guidance, explanation, and examples

Interpretation and Application of IPSAS provides practical guidance on the implementation and application of the International Public Sector Accounting Standards. This book brings readers up to date on the standards, and describes their proper interpretation and real-world application. Examples and mini-case studies clarify the standards' roles throughout, giving readers a better understanding of complex processes, especially where the IPSAS deviate from IFRS. Readers also gain insight into smoothly navigating the transition for a public sector entity, which is moving to either IPSAS under accrual basis of accounting or to cash accounting IPSAS, plus an overview of IPSAS adoption status and methods around the world.

Global public sector accounting is highly diversified, resulting in ongoing moves to harmonise standards worldwide. The IPSAS are international standards that largely follow the IFRS model, but differ in some key areas and include standards in places where IFRS has none. This book provides complete guidance to IPSAS, with clear explanation and expert insight.

  • Understand the meaning and role of each standard
  • Apply the standards to real-world scenarios
  • Manage the process of transition to IPSAS

These standards are meant to be followed by all public sector entities, including national and regional governments and local authorities. They've been adopted by the UN, NATO, the European Commission, and others, and either have been or soon will be adopted in Malaysia, Switzerland, Spain, and more.

Table of Contents

  1. Foreword
  2. Acknowledgements
  3. About the Authors
    1. Caroline Aggestam Pontoppidan
    2. Isabelle Andernack
  4. List of IPSAS with Corresponding IFRS
    1. Full Listing of all IPSAS and IFRS “Equivalent” As at 2 March 2015
  5. List of IPSAS with Brief Description
  6. Disclaimer
  7. Part 1 Introducing Public Sector Accounting
    1. 1 Introduction
      1. Aim of the Book
      2. IPSAS and Public Sector Entities
      3. Structure of the Book
      4. Notes
    2. 2 Why Converge Public Sector Accounting Practices?
      1. Transparency
      2. Accountability
      3. Why is there an Interest in Global Convergence of Public Sector Accounting?
      4. Conclusion
      5. Notes
    3. 3 The IPSASB
      1. A Review of Events that have Shaped Today's IPSASB
      2. Current Objectives, Structure, and Members of the IPSASB
      3. Relationship between the IASB and the IPSASB
      4. Oversight and Governance of the IPSASB
      5. IPSASB Work in Process
      6. New Pronouncements
      7. Work-in-progress
      8. Conclusion
      9. Notes
  8. Part 2 Accrual-based IPSAS
    1. 4 The IPSASB Conceptual Framework and Key Accrual Accounting Concepts
      1. Principles-based Accrual Accounting
      2. Background and Purpose of the IPSASB Conceptual Framework
      3. The Content of the Conceptual Framework
      4. Notes
    2. 5 Financial Statements
      1. Presentation of Financial Statements
      2. Structure, Frequency, and Content of Financial Statements
      3. Segment Reporting
      4. Accounting Policies, Changes in Accounting Estimates, and Errors
      5. Events After the Reporting Date
      6. Notes
    3. 6 Disclosure Standards
      1. Related Party Disclosures
      2. <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">Loans</i>
      3. Disclosure about the General Government Sector
      4. Notes
    4. 7 Long-Term (Non-Current) Assets
      1. Property, Plant and Equipment (PP&E) (IPSAS 17)
      2. Borrowing Costs (IPSAS 5)
      3. Intangibles (IPSAS 31)
      4. Investment Property (IPSAS 16)
      5. Impairment (IPSAS 21 and IPSAS 26)
      6. Notes
    5. 8 Current Assets
      1. Inventories versus Property, Plant, and Equipment
      2. Inventory (IPSAS 12)
    6. 9 Service Concession Arrangements: Grantor
      1. Service Concession Arrangements: Grantor
      2. Note
    7. 10 Leases and Leasing Arrangements
      1. Does an Arrangement Contain a Lease?
      2. Substance Over Form
      3. Accounting Treatment by Lessees
      4. Accounting Treatment by Lessors
      5. Sale and Leaseback Transactions
      6. Disclosures
    8. 11 Revenues and Expenses
      1. Non-Exchange Revenue (IPSAS 23)
      2. Measurement
      3. Revenue from Exchange Transactions (IPSAS 9)
      4. Transactions that Include Both an Exchange and Non-Exchange Component
      5. Principal–Agent Accounting
      6. Construction Contracts (IPSAS 11)
      7. Expense Recognition
      8. Notes
    9. 12 Employee Benefits, Social Benefits, and Other Liabilities
      1. Contributions Received in Advance, Accounts Payable, and Accrued Liabilities
      2. Employee Benefits (IPSAS 25)
      3. Social Benefits
      4. Notes
    10. 13 Provisions and Contingencies
      1. How to Distinguish between Provisions, Accruals, and Payables
      2. Note
    11. 14 Budget Reporting
      1. Excessive Deficit Procedure
      2. Stability and Growth Pact
      3. The Role of IPSAS 24 on Presentation of Budget Information in Financial Statements
      4. Applying IPSAS 24 on the Presentation of Budget Information in Financial Statements
      5. Notes
    12. 15 Financial Instruments
      1. What is a Financial Instrument?
      2. Financial Instruments: Presentation
      3. Offsetting
      4. Financial Instruments: Recognition and Measurement
      5. Financial Instruments: Disclosure
    13. 16 Consolidations and Strategic Investments
      1. Consolidated and Separate Financial Statements (IPSAS 6)
      2. Investments in Associates (IPSAS 7)
      3. Joint Ventures (IPSAS 8)
      4. Separate Financial Statements (IPSAS 34)
      5. Disclosure of Interests in Other Entities (IPSAS 38)
      6. Notes
    14. 17 Specific Standards: Accounting for Agriculture and Accounting in Hyperinflation Economies
      1. Agriculture (IPSAS 27)
      2. 1. GENERAL INFORMATION
      3. 14. BIOLOGICAL ASSETS
      4. Valuation methodology
      5. Discount rate
      6. Market overview
      7. Financial Reporting in Hyperinflationary Economies (IPSAS 10)
      8. Conclusion
      9. Note
    15. 18 Recommended Practice Guidelines (RPGs)
      1. Reporting on the Long-Term Sustainability of an Entity's Finances (RPG 1)
      2. Financial Statement Discussion and Analysis (RPG 2)
      3. Reporting Service Performance Information (RPG 3)
      4. Conclusion
      5. Notes
  9. Part 3 CASH-BASED IPSAS
    1. 19 Cash Basis IPSAS
      1. Content Part 1 Cash Basis IPSAS (Mandatory)
      2. Examples of Use of Cash Basis IPSAS
      3. Content Part 2 Cash Basis IPSAS (Non-Mandatory)
      4. Notes
  10. Part 4 MAKING THE TRANSITION TO IPSAS AND CLOSING
    1. 20 Making the Transition to IPSAS
      1. Transitioning to IPSAS
      2. Project Management Perspective
      3. What is the Starting Point for Transition? Different Paths of IPSAS Adoption
      4. First-time Adoption of Accrual Basis IPSAS (IPSAS 33)
      5. Conclusion
      6. Notes
  11. Conclusion
    1. Notes
  12. Annex 1: Brief Description of IPSAS
  13. Annex 2: Key Characteristics of Public Sector Entities<sup xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">1</sup>
    1. Notes
    2. References
  14. Annex 3: Employee Benefits: An Overview of the Key Principles
    1. 3.1 Short-term Employee Benefits
    2. 3.2 Post-Employment Benefits
    3. 3.3 Termination Benefits
    4. 3.4 Other Long-term Employee Benefits
    5. Notes
  15. Annex 4: Appendix to Chapter 21. Transition to IPSAS. Case Example: Iceland IPSAS Implementation Plan<sup xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">1</sup>
    1. Notes
  16. Bibliography
  17. Index
  18. EULA