Interpretation and Application of IPSAS

Conclusion

In conclusion, we may refer to the recommendations made by IFAC to the G-20 for their 19–20 April 2012 meeting, focusing on the need for enhanced public sector financial management, transparency, and accountability:¹

In responding to the problems created by the global financial crisis and ensuing sovereign debt crisis, it is critical that the G-20 strives for reporting of high-quality, internationally consistent, relevant, and reliable financial and non-financial information by all sectors, including the public sector. For the last ten years IFAC has consistently promoted the need for enhanced transparency and accountability in the public sector, noting in particular the risk that a lack of transparency and accountability presents to the efficiency of capital markets, global financial stability, and long term sustainability.

The sovereign debt crisis has caused instability in the global financial system and is a significant threat to global financial stability. The failure of fiscal management in the public sector is unfortunately still widespread and has an economic impact that far exceeds the impact of losses incurred by corporate failures in the first decade of the 21st century. This global financial crisis (and ensuing sovereign debt crisis) demonstrates that the policies chosen to address the global financial crisis may have moved the problem from a corporate to a government sector problem.

The problems highlighted by the sovereign debt crisis include the lack ...