Interpretation and Application of IPSAS

1 Introduction

International Public Sector Accounting Standards (IPSAS) are gaining increasing acceptance globally (see Table 1.1 for a full listing of all IPSAS). Public administrators are today encountering important challenges in reducing the distance between accounting systems within countries as well as across borders. This entails a move towards harmonization¹ of accounting practices in the public sector and thus requires choosing an appropriate set of accounting and financial reporting standards (see also Caperchione, 2015).

Table 1.1 Full listing of all IPSAS and IFRS “equivalent” as at 1 March 2015

IPSAS	IFRS “equivalent” (if applicable)
IPSAS 1—Presentation of Financial Statements	IAS 1
IPSAS 2—Cash Flow Statements	IAS 7
IPSAS 3—Accounting Policies, Changes in Accounting Estimates and Errors	IAS 8
IPSAS 4—The Effects of Changes in Foreign Exchange Rates	IAS 21
IPSAS 5—Borrowing Costs	IAS 23
IPSAS 6—Consolidated and Separate Financial Statements6	IAS 27 (replaced)
IPSAS 7—Investments in Associates7	IAS 28 (replaced)
IPSAS 8—Interests in Joint Ventures8	IAS 31 (replaced)
IPSAS 9—Revenue from Exchange Transactions	IAS 18
IPSAS 10—Financial Reporting in Hyperinflationary Economies	IAS 29
IPSAS 11—Construction Contracts	IAS 11
IPSAS 12—Inventories	IAS 2
IPSAS 13—Leases	IAS 17
IPSAS 14—Events after the Reporting Date	IAS 10
IPSAS 15— (withdrawn)9
IPSAS 16—Investment Property	IAS 40
IPSAS 17—Property, Plant, and Equipment	IAS 16 ...