1 / 22

“IPSASB Strategy” Lindy Bodewig IPSASB Member, South Africa

“IPSASB Strategy” Lindy Bodewig IPSASB Member, South Africa. Evolution of the IPSASB. 1997 – 2001 IFAC Public Sector Committee starts IPSAS development programme First 21 IPSASs based on IASB equivalents, interpreted as necessary. 2002 - 2009

burnley
Download Presentation

“IPSASB Strategy” Lindy Bodewig IPSASB Member, South Africa

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. “IPSASB Strategy”Lindy BodewigIPSASB Member, South Africa

  2. Evolution of the IPSASB • 1997 – 2001 • IFAC Public Sector Committee starts IPSAS development programme • First 21 IPSASs based on IASB equivalents, interpreted as necessary • 2002 - 2009 • Development of first public sector specific IPSASs (22 – 24) • IFRS Convergence (IPSAS 25 – 32) • Start of Conceputal Framework project (completed in 2014) • 2010 - 2015 • First time Adoption IPSAS & IFRS Convergence Maintained (IPSAS 33 – 38) • First public work plan consultation • 2016 - 2018 • Strong focus on public sector specific topics, e.g. IPSAS on Social Benefits, non-exchange expenditures • Second public work plan consultation

  3. Where do the IPSASB Members come from? Europe Asia North America Latin America/Caribbean Australasia/Oceania Africa/Middle East

  4. Structure and the Standard Setting Process

  5. Current Projects

  6. Strategy 2019 – 2023 Strategic Objective

  7. Strategy 2019 – 2023 Strategic Themes • Developing and maintaining IPSAS and other high-quality financial reporting guidance for the public sector; and • Raising awareness of IPSAS and the benefits of accrual adoption.

  8. New Projects

  9. Thank you

  10. “Journey to IPSAS Accrual”Lindy BodewigChief Director: Technical Support ServicesNational Treasury, South Africa

  11. Legislative Framework Financial Reporting Standards • The Constitution of South Africa envisages public sector reporting in compliance with generally recognised practice; • The Public Finance Management Act (PFMA) defined this as the accounting standards issued by the Accounting Standards Board (ASB) – also established in terms of the PFMA • Standards are referred to as the Standards of Generally Recognised Accounting Practice (GRAP) • ASB was fully constituted in 2002 and took the decision to develop GRAP from the international public sector accounting standards (IPSAS) – accrual based

  12. GRAP Standards Issued • Equivalent of all IPSASs developed and issued by ASB • South African initiatives • GRAP 100 series • Reporting framework for Government Business Enterprises Post implementation reviews • Desktop reviews of selected sections in annual reports

  13. Reporting Landscape • The PFMA requires all entities to comply with the standards of GRAP; • Government Business Enterprises (GBEs) may only apply IFRS is meet specific criteria (self assessment); • Non-GBEs, converted to GRAP as and when issued; • Departments were not applying the accrual basis of accounting, thus the regulations to the PFMA specified that until the Standard of GRAP became effective for departments. Departments use the Modified Cash Standard; • Municipalities apply the standards of GRAP in terms of requirements of the Municipal Finance Management Act (MFMA), converted from Fund Accounting to Accrual Accounting;

  14. Journey for Municipalities • Categorisation of Municipalities: High, Medium and Low capacity (different start and end dates); • Issued guidance on how to unbundle reserves and related assets; • Specimen AFS, with suggested accounting policies; • GRAP Guidelines  explanations, illustrative examples, internal controls • Asset decision tree; • Frameworks  asset management, revenue management, contract management; • High level awareness training and support; • Minimum competency framework; • Standard Chart of Accounts (mSCOA);

  15. Journey for Municipalities 3 year transitional provision  measurement of property, plant and equipment Year 2 Year 3 Year 1 Date of Compliance with GRAP 30 June 2011 30 June 2009 30 June 2010 Date of Adoption of GRAP 1 July 2008 • Assets could be recognised at provisional amounts in the financial statements during the transitional period. Provisional amounts could represent the carrying amounts under the previous basis of accounting, or they may be recognised at R0 (for example, if assets were previously not recognised); • When the cost and acquisition date of an asset acquired before 1 July 2008 is available, such an asset must be recognised at the acquisition cost (historical cost). Deemed cost should only be used where historical information is not available, i.e. cannot determine the historical cost after every reasonable effort to do so;

  16. Journey for Municipalities 3 year transitional provision  measurement of property, plant and equipment Year 2 Year 3 Year 1 Date of Compliance with GRAP 30 June 2011 30 June 2009 30 June 2010 Date of Adoption of GRAP 1 July 2008 • Deemed Cost: • Fair value at the measurement date; or • Depreciated replacement cost at the measurement date determined for assets where the fair value cannot be determined; • Adoption of GRAP 17 (or IPSAS 17) represents a change in accounting policy  applied retrospectively; • The adjustment to property, plant and equipment was made to the opening balance of the accumulated surplus or deficit OR against a revaluation surplus if the revaluation model is applied in the earliest period presented.

  17. Journey for Municipalities 3 year transitional provision  measurement of property, plant and equipment Year 2 Year 3 Year 1 Date of Compliance with GRAP 30 June 2011 30 June 2009 30 June 2010 Date of Adoption of GRAP 1 July 2008 Did this approach work? Generally No. • Municipalities waited until end of year 3 to comply with the Standard, very little progress was made in the transitional phase • AGSA did not report on non-compliance and progress during transitional period • Municipalities did not understand extent of adjustment to opening balances and focused on asset values on 30 June 2011 only Preferred approach  align date of adoption with date of compliance, no transitional provisions with a focus what must be done up until date of adoption

  18. Journey for Municipalities Other challenges • Development of Asset Registers and identification of infrastructure assets (unbundling of assets); • Componentisation of assets; • Valuation of fully depreciated assets; • Capitalisation Thresholds; • Library Material; • Heritage Assets in Museums; • Audit materiality vs. reporting materiality; • Skills and Capacity of staff and municipal councillors; • Accrual Budgeting  accuracy thereof and dealing with over-expenditures; • Finance vs Operational leases  identification; • Systems to prepare financial statements;

  19. Improved Transparency

  20. Improved Transparency 11

  21. Thank you

More Related