International Public Sector Accounting Standards Board IPSASB OECD

International Public Sector Accounting Standards Board (IPSASB) OECD – Public Private Partnerships July 2006 Philippe Adhémar – IPSASB Chair

IFAC IPSASB Overview • Current Status of IPSASB Project • Update on discussions at last IPSASB meeting – Paris July 3 -6 • Likely future actions • See attachment for IPSASB – Membership – IPSASs, EDs, Research Reports – Projects under development – Download from www. IPSASB. org June 2006 IPSASB 2

IFAC IPSASB Service Concessions – Public Private Sector Partnerships • IPSASB has noted importance of project on PPPs • Deferred actioning own project pending: – IFRIC developments – IPSASB staff resource to support project • Responded to IFRIC draft Interpretations, Concerns: – – Grantors not dealt with Narrow range of PPPs being dealt with Notion of control: implications for public sector Distinguishing between the accounting models June 2006 IPSASB 3

IFAC IPSASB Follow-up Activity • IPSASB subcommittee monitoring IFRIC developments – IFRIC responding to certain concerns • IPSASB raised potential for collaborative project national standards setters and other bodies (NSS) – Positive response – Discuss with NSS in Paris July 5 – Consider implications for IPSASB resource allocations to projects June 2006 IPSASB 4

IFAC IPSASB Proposals- Paris July 5, 2006 • Collaborative project with NSS • Research project dealing with grantors – – Not focus on application of IFRICs for grantors Encompass both grantor and operator Include overview of current practice Subsequent stage development of an IPSAS • Research/Consultation paper developed by subcommittee of IPSASB and NSS members – To be issued by IPSASB for comment – May also be issued by NSS in national context • Action project Nov. 06. Develop and issue paper 07 June 2006 IPSASB 5

IFAC IPSASB Proposals- Paris July 5, 2006 • Update on outcome of discussions with NSS in Paris June 2006 IPSASB 6

International Federation of Accountants www. ifac. org

IFAC IPSASB ATTACHMENT: IPSASB Members 2006 • Accounting Profession France (Chair), UK (Deputy Chair), Australia, Argentina, Canada, India, Israel, Japan, Malaysia, Mexico, New Zealand, Netherlands, Norway, South Africa, USA Public Members Prof A Bergman (Switzerland), Prof S. Pozzoli (Italy), Mr J. Peace (USA) • IPSASB Observers ADB, EU, IASB, IMF, INTOSAI, OECD, World Bank, UNDP June 2006 IPSASB 8

IFAC IPSASB ATTACHMENT – IPSASB Due Process • • Exposure Drafts – at least 4 months comment Open meetings, agenda materials on web Steering Committees (SC) – ITCs for comment Project Advisory Panels (PAP) – input to IPSASB • Consultative Group (CG) • Regional Seminars/round table discussions in conjunction with each IPSASB meeting June 2006 IPSASB 9

Recent EDs – Draft IPSASs IFAC IPSASB ED 24“Cash Basis External Assistance”-comments 15 June 05 ED 25 “Amendment to the Preface to IPSASs” (by 31 Jan 06) ED 26 “Improvements to IPSASs (by 31 Jan 06) ED 27 “Presentation of Budget Information in Financial Statements” (by 10 Feb 06) ED 28 “Disclosure of Financial Information About the General Government Sector” (by 10 Feb 06) ED 29 “Revenue from Non Exchange Transactions” (including Taxes and Transfers) (by 30 June 06) June 2006 IPSASB 10

IFAC IPSASB ATTACHMENT – Other Active Projects on IPSASB Agenda Social Policy Obligations (Pensions, Non-Pensions) Government Employee Benefits (Pensions and other) Heritage Assets Presentation of Budget Information in Financial Statements Disclosure of Information: General Government Sector Impairment of Cash Generating Assets Conceptual Framework Review implementation of Cash Basis IPSAS Disclosures by Recipients of External Assistance (Cash basis) Ongoing review of applicability of IFRSs to public sector June 2006 IPSASB 11

IFAC IPSASB ATTACHMENT– IPSASs on Issue Cash Basis IPSAS, “Financial Reporting Under the Cash Basis of Accounting” Comprehensive IPSAS which includes: a wide range of key cash basis requirements and encourages additional disclosures June 2006 IPSASB 12

IFAC IPSASB ATTACHMENT – Accrual IPSASs (* Identifies IPSASs currently being improved) *IPSAS 1, “Presentation of Financial Statements” IPSAS 2, “Cash Flow Statements” *IPSAS 3, “Net Surplus or Deficit for the Period, Fundamental Errors and Changes in Accounting Policies” *IPSAS 4, “The Effects of Changes in Foreign Exchange Rates” IPSAS 5, “Borrowing Costs” *IPSAS 6, “Consolidated Financial Statements and Accounting for Controlled Entities” June 2006 IPSASB 13

IFAC IPSASB ATTACHMENT – Accrual IPSASs (cont. ) *IPSAS 7, “Accounting for Investments in Associates” *IPSAS 8, “Financial Reporting of Interests in Joint Ventures” IPSAS 9, “Revenue from Exchange Transactions” IPSAS 10, “Financial Reporting in Hyperinflationary Economies” IPSAS 11, “Construction Contracts” *IPSAS 12, “Inventories” June 2006 IPSASB 14

IFAC IPSASB ATTACHMENT – Accrual IPSASs (cont. ) *IPSAS 13, “Leases” *IPSAS 14, “Events After the Reporting Date” IPSAS 15, “Financial Instruments: Disclosure and Presentation” *IPSAS 16, “Investment Property” *IPSAS 17, “Property, Plant and Equipment” June 2006 IPSASB 15

IFAC IPSASB ATTACHMENT – Accrual IPSASs (cont. ) IPSAS 18, “Segment Reporting” IPSAS 19, “Provisions, Contingent Liabilities and Contingent Assets” IPSAS 20, “Related Party Disclosures” IPSAS 21, “Impairment of Non-cash-generating Assets” June 2006 IPSASB 16

IFAC IPSASB ATTACHMENT– Recent Research Reports Research Report • Budget Reporting (May 04) • Comparison between GPFS and GFS/SNA (January 05) June 2006 IPSASB 17