The above publication is now available for free download on the IFAC website ress.ifac.org/news/2011/01/ipsasb-publishes-revised-guidance-to-assist-public-sector-entities-with-transition-from-cash-basis-to-accrual-basis-of-accounting
This Study is intended to assist governments and government entities wishing to migrate to the accrual basis of accounting in accordance with International Public Sector Accounting Standards (IPSASs). It may also assist governments and government entities complying with the financial reporting requirements of the Cash Basis IPSAS Financial Reporting Under The Cash Basis of Accounting in making the additional encouraged disclosures.
The guidance in this Study includes:
(a) An overview of the wider context in which the transition to the accrual basis of accounting may occur;
(b) A discussion of various transition paths that entities choosing an incremental implementation process may adopt;
(c) Identification of the main tasks associated with recognition of assets, liabilities, revenues, and expenses, including issues associated with identification and measurement of those elements;
(d) Some implications of adopting accrual basis IPSASs; and
(e) Practical suggestions based on the experience of other entities and jurisdictions and electronic links to papers documenting these experiences.
The Study has four main parts as follows:
(a) Introduction (Chapters 1 to 3): This part addresses general planning and project management issues;
(b) General Financial Reporting Issues (Chapters 4 and 5): This part deals with the selection, development, and approval of accounting policies, and issues associated with the definition and identification of reporting entities;
(c) Financial Statement Elements (Chapters 6 to
: This part outlines the broad steps required for the identification, recognition, measurement, and disclosure of assets, liabilities, revenues, and expenses.
(d) Specific Topics (Chapters 9 to 22): This part highlights implementation issues associated with specific IPSASs, and provides guidance in relation to a selection of topics not addressed, or only partially addressed, by existing IPSASs.
While the Paper emphasizes the benefits of accrual accounting there are useful sections on implementation and capacity issues in transaction and developing economies.
