This chapter will consider revenue and expense recognition under IPSAS. Public sector entities can derive revenue from exchange and non-exchange transactions (see Figure 11.1). IPSAS 9 Revenue from Exchange Transactions is the current standard to be applied when determining how and when revenue should be recognized for exchange transactions. IPSAS 9 sets the principles for the recognition of revenue arising from the sale of goods and the rendering of services. IPSAS 23 Revenue from Non-Exchange Transactions (taxes and transfers) prescribes the requirements for accounting and reporting for revenue arising from non-exchange transactions. Common sources of non-exchange revenue in the public sector include taxes and transfers. The difference between exchange and non-exchange transactions is the substance rather than the form of the transaction. It should also be noted that within the public sector, revenue transactions can include both exchange and non-exchange components. IPSAS 11 on Construction Contracts sets out the principles for the recognition of revenue arising from long-term construction contracts. In order to cover the accounting for revenue-generating transactions, this chapter will include IPSAS 23, IPSAS 9, and IPSAS 11. The IPSASB Conceptual Framework and IPSAS 1 provide the definition of revenue1 (see Figure 11.1) and expenses.
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
