IPSASB strategy sharpens focus on public financial management and benefits of IPSAS adoption
The International Public Sector Accounting Standards Board (IPSASB) has published its Strategy and Work Plan 2019-2023: Delivering Global Standards. Inspiring Implementation, which sets out the Board’s work and priorities for the next five years. The IPSASB’s strategic objective is to "Strengthen Public Financial Management (PFM) globally through increasing adoption of accrual-based IPSAS".
The IPSASB will implement its Strategy and Work Plan 2019-2023 through two streams:
1) Delivering global standards:
- Setting standards on public sector specific issues
- Maintaining IFRS alignment
- Developing guidance to meet users’ broader financial reporting needs
The Board’s priorities for standard setting include completing its current projects (revenue, leases, public sector measurement, heritage and infrastructure) as well as making progress with new projects such as natural resources.
2) Inspiring governments to adopt IPSAS by:
- Promoting IPSAS adoption and implementation
- Advocating the benefits of accrual in strengthening PFM.
IPSASB Chair, Ian Carruthers said that “Governments depend on the trust of their citizens and their national and international stakeholders in order to deliver their goals efficiently and effectively. The regular publication of high-quality accrual-based financial reports helps strengthen public financial management, and is a fundamental ingredient in maintaining that trust”.
“IPSAS-based information provides a comprehensive and comparable picture of a public sector entity’s financial performance and position. IPSAS adoption and implementation therefore represent fundamental steps for governments to take, not only to increase transparency and accountability to their citizens and stakeholders, but also to inform effective decision making, so contributing to fiscal stability and sustainability. Our new Strategy and Work Plan is intended both to support and to help inspire governments and other public sector organizations making that journey,” Mr. Carruthers added.
Meanwhile, the International Public Sector Financial Accountability Index is projecting that 65% of countries will report on the accrual basis within five years.