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

IPSAS 24: Presentation of Budget Information in Financial Statements

Objective

IPSAS 24 requires a comparison of budget amounts and the actual amounts arising from execution of the budget to be included in the financial statements of entities which are required to, or elect to, make publicly available their approved budget(s) and for which they are, therefore, held publicly accountable. The standard also requires disclosure of an explanation of the reasons for material differences between the budget and actual amounts. Compliance with the requirements of this standard will ensure that public sector entities discharge their accountability obligations and enhance the transparency of their financial statements by demonstrating compliance with the approved budget(s) for which they are held publicly accountable and, where the budget(s) and the financial statements are prepared on the same basis, their financial performance in achieving the budgeted results.

The IFRS on which the IPSAS is based

IPSAS 24 is an IPSAS specifically for the public sector. As a result there is no IFRS equivalent.

Content

Principal definitions

IPSAS 24 defines the original budget as the initial approved budget for the budget period.

Approved budget means the expenditure authority derived from laws, appropriation bills, government ordinances and other decisions related to the anticipated revenue or receipts for the budgetary period.

Final budget is the original budget adjusted for all reserves, carry over amounts, ...