IPSAS Explained: A Summary of International Public Sector Accounting Standards, 2nd Edition

2 International Accounting Standards for the Public Sector

2.1 Overview of international accounting standards for the public sector

The IPSASB develops IPSASs for financial statements prepared on the accrual basis of accounting as well as for financial statements prepared on the cash basis of accounting. IPSASs govern the recognition, measurement, presentation and disclosure requirements in relation to transactions and events in general purpose financial statements. Such financial statements are characterized by the fact that they are issued for users who are unable to demand financial information to meet their specific information needs. On the basis of the new IPSASB Terms of References and as one of the consequences of its Conceptual Framework Project and the Projects on Reporting Service Performance Information and Reporting on the Long-Term Sustainability of a Public Sector Entity's Finances the IPSASB widened its scope to GPFRs. According to IPSASB Conceptual Framework ED 1 Par. 1.3 GPFRs are a central component of, and support and enhance, transparent financial reporting by governments and other public sector entities. GPFRs are characterized by the fact that they not only comprise financial statements but also refer to other financial reports intended to meet the information needs of users who are unable to require the preparation of financial reports tailored to meet their specific information needs. GPFRs may include information about the past, present, and the future ...