Interpretation and Application of IPSAS

466 Pages·2016·2.81 MB·English

by  Caroline Aggestam-Pontoppidan

Interpretation and
Application of IPSAS

Interpretation and
Application of IPSAS
Caroline Aggestam-Pontoppidan
Isabelle Andernack
Thiseditionfirstpublished2016
©2016CarolineAggestam-PontoppidanandIsabelleAndernack
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LibraryofCongressCataloging-in-PublicationData
Names:Aggestam-Pontoppidan,Caroline,1975–Andernack,Isabelle,1972–
Title:InterpretationandapplicationofIPSAS/CarolineAggestam-Pontoppidan.
Description:Hoboken:Wiley,2016.Series:Wileyregulatoryreporting
Includesbibliographicalreferencesandindex.
Identifiers:LCCN2015037506(print)ISBN9781119010296(paperback)
Subjects:LCSH:Finance,Public–Accounting–Standards.Internationalpublicsectoraccounting
standard.
Classification:LCCHJ9733.A342016(print)LCCHJ9733(ebook)DDC
657/.8350218–dc23
LCrecordavailableathttp://lccn.loc.gov/2015037506
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ISBN978-1-119-01029-6(pbk)ISBN978-1-119-01031-9(ebk)
ISBN978-1-119-01030-2(ebk)ISBN978-1-119-17032-7(ebk)
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PrintedinGreatBritainbyTJInternationalLtd,Padstow,Cornwall,UK
CONTENTS
Foreword vii
Acknowledgements ix
AbouttheAuthors xi
ListofIPSASwithCorrespondingIFRS xiii
ListofIPSASwithBriefDescription xv
Disclaimer xix
Part1 IntroducingPublicSectorAccounting
1 Introduction 3
2 WhyConvergePublicSectorAccountingPractices? 11
3 TheIPSASB 17
Part2 Accrual-BasedIPSAS
4 TheIPSASBConceptualFrameworkandKeyAccrual
AccountingConcepts 35
5 FinancialStatements 55
6 DisclosureStandards 109
7 Long-Term(Non-Current)Assets 123
8 CurrentAssets 167
9 ServiceConcessionArrangements:Grantor 175
10 LeasesandLeasingArrangements 187
11 RevenuesandExpenses 207
12 EmployeeBenefits,SocialBenefits,andOtherLiabilities 243
13 ProvisionsandContingencies 257
14 BudgetReporting 271
15 FinancialInstruments 285
16 ConsolidationsandStrategicInvestments 307
17 SpecificStandards:AccountingforAgricultureandAccountingin
HyperinflationEconomies 327
18 RecommendedPracticeGuidelines(RPGs) 339
Part3 Cash-BasedIPSAS
19 CashBasisIPSAS 351
v
vi Contents
Part4 MakingtheTransitiontoIPSASandClosing
20 MakingtheTransitiontoIPSAS 375
Conclusion 407
Annex1:BriefDescriptionofIPSAS 409
Annex2:KeyCharacteristicsofPublicSectorEntities 413
Annex3:EmployeeBenefits:AnOverviewoftheKeyPrinciples 415
Annex4:AppendixtoChapter21.TransitiontoIPSAS.CaseExample:
IcelandIPSASImplementationPlan 417
Bibliography 425
Index 431
FOREWORD
It is with pleasure that I am writing this foreword to Interpretation and Application
ofIPSAS,whichhasbeenauthoredbyCarolineAggestam-PontoppidanandIsabelle
Andernack.
International Public Sector Accounting Standards (IPSASs) are issued by the
IPSAS Board (IPSASB) for use by public sector entities around the world in the
preparation of their financial statements, and are intended to improve the quality of
financialreporting.
However, although an entirely accurate picture is difficult to obtain, it would
appearthatadoptionandimplementationofIPSASaroundtheworldhasbeenslower
than expected. It is hopefully the case that the next few years will see many more
publicsectororganizationsonallcontinentsembracingIPSAS,andtherebyupgrading
thereporting,theaccountabilityandthetransparencyoftheirorganizations.
Relatively few publications dealing with the practical adoption of IPSAS have
been available to implementers and other interested parties so far, and it is to every-
body’s benefit to see this work, entitled Interpretation and Application of IPSAS,
beingpublished.
Inparticular,Iampleasedtoseeatextthatincludesexamplesandmini-casestud-
iesthathelptoillustratehowIPSASisapplied–thiswillbeveryhelpfulfortraining
andeducationpurposes.Thisbookalsoprovidesusefulinsightsintonavigationofthe
transitiontoIPSAS,eitherundertheaccrualbasisorcashbasisofaccounting.
Iamconfidentthatthisimportantworkwillbeofsignificantbenefittotherelevant
communities,andcongratulatetheauthorsontheirachievement.
ByMarcGardinerBSc(Econ)CPA,ChiefExecutive
OfficerofIASeminarsLtd.,London
IASeminars is an independent global financial training company specialising in
internationalaccountingseminars(IFRS&USGAAP&IPSAS)andotherfinancial
trainingevents.
vii