1 / 11

Task Force on Harmonisation of Public Sector Accounting

Task Force on Harmonisation of Public Sector Accounting. Progress Report OECD Working Party on National Accounts (Paris, 13 October 2004). TFHPSA: raison d’être, objectives.

Download Presentation

Task Force on Harmonisation of Public Sector Accounting

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. Task Force on Harmonisation of Public Sector Accounting Progress Report OECD Working Party on National Accounts (Paris, 13 October 2004)

  2. TFHPSA: raison d’être, objectives • October 2003: creation in Paris (several international organisations: OECD, IMF, Eurostat, ECB, IFAC–Public sector committe) • Harmonisation and convergence between: - Accounting standards (IAS and IPSAS) and statistical manuals (SNA and GFS): WG1 - Statistical frameworks and guidelines, in the context of SNA review for 2008 (SNA and GFS, ESA manual on deficit and debt -EMGDD): WG2 Towards a chapter on GG accounts in the SNA

  3. TFHPSA: the start • February 2004: 1st meeting, in Paris (28 participants) - Working group 1: Matrix of comparison of standards (IPSAS, GFS, ESA, EMGDD) - Working group 2: 5 priority issues and 5 working teams: . Tax revenue and tax credits . Public/private/government sector delineation . Transactions with public corporations . Privatisation, restructuring agencies, SPVs . Contingent assets / government guarantees

  4. The TFHPSA today • 22-24 September 2004: 2nd meeting, in Washington DC (40 participants) - enlargement of the TFHPSA basis: more countries and international organisations - deeper into the issues and narrowing the focus - modifying the time frame for discussions due to: . some issues may require conceptual changes . consider other inputs: other bodies and recent set-up of the Eurostat task force (for ESA review)

  5. Public accounting standards: WG1 • The PSC, a body of IFAC, has produced 20 IPSAS (standard setting activity) • Main focus of IPSAS on the consolidated public sector (not GG), based on the notion of control • Working group 1 has agreed on a matrix of comparison of standards (accounting and statistics) • Some convergence: PSC agrees to recommend disclosure of GG statistics, takes on board the distinction between transactions and other flows…

  6. WG2: Tax revenue and tax credits • Definition of tax revenue: only a minor change to the core definition. More developments to distinguish with purchase of services, fees, leases etc. • Implementation of accruals: time of recording and amounts to be recorded need more guidance • Tax credits: nothing at present in the SNA. Need to borrow guidance from OECD, GFS

  7. Government / public / private sector • Notion of control: « the capacity to govern the policy objectives of a unit » • Economically significant prices (market/non-market distinction): can the ESA threshold (50% test) be taken over in the SNA? Reluctance outside Europe… • Cases of NPIs to be classified in GG • The notion of « ancillary units »

  8. Transactions between government and public corporations The lack of guidance in the SNA (for capital injections, super-dividends, debt assumptions etc.) means inconsistency and possible irrelevant balancing items 3 recommendations: • R0: to bring only minor changes to the letter of the SNA (dropping reference to « transfers » etc.) • R1: to take on board the EMGDD provisions on these issues • R2: to apply the treatment recommended for foreign direct investment and reinvested earnings (D43): to accrue the profit or loss of the public corporation in the government account

  9. Restructuring agencies and SPVs • General issue of privatisation • Complicated cases and issues: securitisation, restructuring agencies, SPVs • Case of SPVs: - mostly financial institutions, classified in sub-sector S.123 or S.122 - but may be ancillary units

  10. Government guarantees • Changes in the international context: IPSAS19, public accounts in some countries (Sweden, UK, USA) • Growing consensus: most of guarantees produce economic and financial effects, and should be recorded as transactions, and in the balance sheet of GG • Related issue: the recording of provisions • The case of export credit insurance

  11. TFHPSA: the next steps • No proposal for decision at this stage • December 2004: Progress report to the Advisory Expert Group (AEG for SNA review) • February-March 2005: TFHPSA meeting in Paris • October 2005: TFHPSA meeting in Washington • November 2005: AEG meeting (decision on TFHPSA papers and proposals) • February 2006: final TFHPSA meeting Output: new chapter in SNA for Government sector

More Related