Interpretation and Application of IPSAS

18 Recommended Practice Guidelines (RPGs)

Recommended practice guidelines (RPGs) are non-mandatory best practice. RPGs are a new type of publication that provides guidance on the broader aspects of financial reporting that are outside the financial statements. They are not IPSAS and are not mandatory.

The IPSASB has issued RPG 1 Reporting on the Long-Term Sustainability of an Entity's Finance;

RPG 2 Financial statement discussion and analysis and RPG 3 on Reporting Service Performance. This chapter will thus provide an overview of the three RPGs.

Reporting on the Long-Term Sustainability of an Entity's Finances (RPG 1)

In July 2013, the IPSASB issued Recommended Practice Guidelines (RPG) 1 Reporting on the Long-Term Sustainability of an Entity's Finances. RPG 1 provides guidance on reporting on the long-term sustainability of a public sector entity's finances over a specified time horizon in accordance with stated assumptions on policy and demographic and economic variables.  

RPG 1 explains that projections need to be based on current policy; not just supportable assumptions. In terms of scope, it applies to all public sector entities. It complements reporting of obligations to provide social benefits but the scope is much wider.

‘RPG 1 provides straightforward guidance on presenting information about the capacity of an entity to provide social benefits at existing levels, to maintain existing taxation revenues and to meet its financial commitments,’ said IPSASB Chair Andreas ...