Essays on International Public Sector Accounting Standards Board Coursework

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The paper 'International Public Sector Accounting Standards Board " is a good example of finance and accounting coursework.   International Public Sector Accounting Standards Board (IPSASB) is a body that develops ethical accounting standards for use by the entities of the public sector referred to as International Public Sector Accounting Standards (IPSASs). The board fully recognises the important benefits of achieving comparable and consistent financial information in various sectors of the economy and it is the belief of IPSASB that the IPSASs play an instrumental role in the provision of the right conditions for the realisation of the benefits.

According to IPSAB, income refers to the savings and consumption opportunity that is gained by an entity over a given period of time, and it is normally expressed in monetary terms. In public economics, it encompasses the accumulation of consumption-ability of monetary and non-monetary total income. An expense, on the other hand, refers to an event where liability is incurred or an asset is used up. In regard to the public sector and private sector accounting equation, it leads to the reduction of owner’ s equity.

It is therefore defined by the IPSAB as economic benefits decreases during the accounting period in regard to depletions or outflows of assets or liabilities incurrence’ s that result in equity decreases. An expense can be appropriately recognised in the operating statement when determining results for the period of reporting when there is the probability that the loss or consumption of future economic values resulting from asset reduction or liabilities increase has occurred and when the measurement of loss or consumption of future economic values can be reliably done. The recognition criteria in financial statements of public sectorThe IPSASB, therefore, issues guidelines in relation to financial reporting under the accrual and cash concepts of accounting.

The accrual basis is fundamentally based on the International Financial Reporting Standards (IFRSs), which are issued by the International Accounting Standards Board (IASB) in which the requirements of the very standards are wholly applicable to the public sector. In addition to that, they are also concerned with specific issues of financial reporting of the public that are not dealt with in IFRSs. The adoption of the standards by any democratic government is believed to help in the improvement of quality and comparability as far as reporting of financial information by the public sector globally is concerned.

The IPSASB rationally recognises the right of national standard setters and governments in the adequate establishment of accounting guidelines and standards for the purposes of financial reporting in their administrative roles.

Bibliography

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International Federation of Accountants (IFAC). December, 2006. Disclosure of Financial Information. The General Government Sector. Retrieved on 15 September 2011 from

International Federation of Accountants, Public Sector Committee ,1995. Study 5 “Definition and Recognition of Assets”, Chapter 2.

Johnson, L.T, 1994, Future Events: A Conceptual Study of Their Significance for Recognition and Measurement.

Milburn, J. Alex, December 1991, “Building a Better Conceptual Framework”, CA magazine, pages 43–48

Sprouse, Robert T. October 1996, “Accounting For What-You-May-Call-Its,” The

the New Economy, Financial Accounting Standards Board Special Report

The Public sector Accounting Board of Canada, 2009. Retrieved on 15 September 2011 from

Upton Jr., & Wayne S., April 2001, Business and Financial Reporting, Challenges from Journal of Accountancy.

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