International Public Sector Accounting Standards (IPSAS) refer to a set of accounting principles, guidelines, and procedures developed by the International Public Sector Accounting Standards Board (IPSASB). IPSASB is an independent board of the International Federation of Accountants (IFAC), aiming to establish high-quality financial reporting standards specifically tailored for use in the public sector.
IPSAS provide a comprehensive framework governing the recognition, measurement, presentation, and disclosure of financial information in public sector entities. These standards are intended to enhance transparency, accountability, and comparability in the financial reporting of governments and other public sector entities worldwide.
IPSAS cover a wide range of financial transactions and events peculiar to public sector entities, such as revenue recognition from taxation, grants, and transfers, financial instruments, infrastructure assets, budgeting and reporting on government programs, and the treatment of revenue and expenses over different periods.
Compliance with IPSAS facilitates the creation of reliable, relevant, and comparable financial statements, which are vital for stakeholders such as citizens, investors, and policymakers to assess the financial performance, financial position, and cash flows of public sector entities in order to make informed decisions.
The adoption of IPSAS promotes financial discipline, enhances accountability, and supports the effective and efficient allocation of resources in the public sector. These standards also play a significant role in promoting good governance and facilitating international comparison and benchmarking of financial performance across various jurisdictions.
