8/9/2019 IPSAS1

1/598

TOC VOLUME I 15TABLE OF CONTENTSVOLUME IPagePreface to International Public Sector Accounting Stanar! """""""""""""""""""""""""""" 1#

T$e Conce%tual Fra&e'or( for )eneral Pur%o!e Financial *e%orting b+ Public Sector Entitie! """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,-IPSAS 1.Pre!entation of Financial State&ent! """"""""""""""""""""""""""""""""""""""""""""""" #5IPSAS ,.Ca!$ Flo' State&ent! """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 1/5IPSAS /.Accounting Policie!0 C$ange! in Accounting E!ti&ate! an Error! """ 11IPSAS -.T$e Effect! of C$ange! in Foreign E2c$ange *ate! """"""""""""""""""""""""" 134IPSAS 5.Borro'ing Co!t! """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,1-IPSAS .Con!oliate an Se%arate Financial State&ent! """"""""""""""""""""""""""""" ,,#IPSAS #.Ine!t&ent! in A!!ociate! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,53IPSAS 6.Intere!t! in 7oint Venture! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,##IPSAS 3.*eenue fro& E2c$ange Tran!action! """""""""""""""""""""""""""""""""""""""""""" ,33

IPSAS 14.Financial *e%orting in 8+%erinflationar+ Econo&ie! """""""""""""""""""" /,5IPSAS 11.Con!truction Contract! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" /-1IPSAS 1,.Inentorie! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" /3IPSAS 1/.Lea!e! """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" /6#IPSAS 1-.Eent! after t$e *e%orting 9ate """""""""""""""""""""""""""""""""""""""""""""""""""" -,/IPSAS 15.Financial In!tru&ent!: 9i!clo!ure an Pre!entation """"""""""""""""""""""" --4IPSAS 1.Ine!t&ent Pro%ert+ """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" --,IPSAS 1#.Pro%ert+0 Plant0 an E;ui%&ent """"""""""""""""""""""""""""""""""""""""""""""""""""" -#IPSAS 16.Seg&ent *e%orting """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 51IPSAS 13.Proi!ion!0 Contingent Liabilitie! an Contingent A!!et! """""""""""""" 5-6IPSAS ,4.*elate Part+ 9i!clo!ure! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 53/IPSAS ,1.I&%air&ent of Non

8/9/2019 IPSAS1

2/598

Accounting Stanar! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,4?,/Language """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,-P*EFACE 13P*EFACE TO INTE*NATIONAL PUBLIC SECTO* ACCOUNTIN) STAN9A*9S

Introuction1" T$i! Preface to t$e International Public Sector Accounting Stanar!=IPSAS!> !et! out t$e ob@ectie! of t$e International Public Sector AccountingStanar! Boar =IPSASB> an e2%lain! t$e !co%e an aut$orit+ of t$eIPSAS!" T$e Preface !$oul be u!e a! a reference for inter%retingCon!ultation Pa%er!0 ot$er i!cu!!ion ocu&ent!0 E2%o!ure 9raft!0*eco&&ene Practice )uieline! an Stanar! eelo%e an i!!ue b+ t$eIPSASB"," T$e &i!!ion of t$e International Feeration of Accountant! =IFAC>0 a! !et outin it! con!titution0 i! to !ere t$e %ublic intere!t b+ contributing to t$eeelo%&ent0 ao%tion an i&%le&entation of $ig$"-" Infor&ation on t$e IPSASBD! &e&ber!$i%0 ter&! of office0 &eeting

 %roceure! an ue %roce!! i! !et out in t$e IPSASBD! Ter&! of *eference0'$ic$ are a%%roe b+ t$e IFAC Boar"Ob@ectie of t$e IPSASB5" T$e ob@ectie of t$e IPSASB i! to !ere t$e %ublic intere!t b+ eelo%ing$ig$

8/9/2019 IPSAS1

3/598

!ector" T$e+ are ba!e on !tu+ of t$e goo %ractice! an &o!t effectie&et$o! for ealing 'it$ t$e i!!ue! being are!!e"  Ot$er %a%er! an re!earc$ re%ort! to %roie infor&ation t$at contribute!

to t$e bo+ of (no'lege about %ublic !ector financial re%orting i!!ue!an eelo%&ent!" T$e+ are ai&e at %roiing ne' infor&ation or fre!$

in!ig$t! an generall+ re!ult fro& re!earc$ actiitie! !uc$ a!: literature!earc$e!0 ;ue!tionnaire !ure+!0 interie'!0 e2%eri&ent!0 ca!e !tuie! ananal+!i!"Sco%e an Aut$orit+ of International Public Sector AccountingStanar!Sco%e of t$e Stanar!6" T$e IPSASB eelo%! IPSAS! '$ic$ a%%l+ to t$e accrual ba!i! of accountingan IPSAS! '$ic$ a%%l+ to t$e ca!$ ba!i! of accounting"3" IPSAS! !et out re;uire&ent! ealing 'it$ tran!action! an ot$er eent! ingeneral %ur%o!e financial re%ort!" )eneral %ur%o!e financial re%ort! arefinancial re%ort! intene to &eet t$e infor&ation nee! of u!er! '$o are

unable to re;uire t$e %re%aration of financial re%ort! tailore to &eet t$eir !%ecific infor&ation nee!"14" T$e IPSAS! are e!igne to a%%l+ to t$e general %ur%o!e financial re%ort! of all %ublic !ector entitie! ot$er t$an )BE!" Public !ector entitie! incluenational goern&ent!0 regional =e"g"0 !tate0 %roincial0 territorial>goern&ent!0 local =e"g"0 cit+0 to'n> goern&ent! an relate goern&entalentitie! =e"g"0 agencie!0 boar!0 co&&i!!ion! an enter%ri!e!>0 unle!!ot$er'i!e !tate" International organiation! al!o a%%l+ IPSAS!" T$e IPSAS!o not a%%l+ to )BE!" )BE! a%%l+ International Financial *e%ortingStanar! =IF*S!> '$ic$ are i!!ue b+ t$e International AccountingStanar! Boar =IASB>" IPSAS! inclue a efinition of )BE!"11" An+ li&itation of t$e a%%licabilit+ of !%ecific IPSAS! i! &ae clear in t$o!e!tanar!" IPSAS! are not &eant to a%%l+ to i&&aterial ite&!"1," T$e IPSASB $a! ao%te t$e %olic+ t$at all %aragra%$! in IPSAS! !$all $aee;ual aut$orit+0 an t$at t$e aut$orit+ of a %articular %roi!ion !$all beP*EFACE TO INTE*NATIONAL PUBLIC SECTO* ACCOUNTIN) STAN9A*9SP*EFACE ,1eter&ine b+ t$e language u!e" Con!e;uentl+0 IPSAS! a%%roe b+ t$eIPSASB after 7anuar+ 10 ,44 inclue %aragra%$! in bol an %lain t+%e0'$ic$ $ae e;ual aut$orit+" Paragra%$! in bol t+%e inicate t$e &ain

 %rinci%le!" An iniiual IPSAS !$oul be rea in t$e conte2t of t$e ob@ectie

an Ba!i! for Conclu!ion! =if an+> !tate in t$at IPSAS an t$i! Preface"IPSAS! for t$e Accrual an Ca!$ Ba!e!1/" T$e IPSASB eelo%! accrual IPSAS! t$at:  Are conerge 'it$ International Financial *e%orting Stanar! =IF*S!>

i!!ue b+ t$e IASB b+ aa%ting t$e& to a %ublic !ector conte2t '$erea%%ro%riate" In unerta(ing t$at %roce!!0 t$e IPSASB atte&%t!0 '$ereer 

 %o!!ible0 to &aintain t$e accounting treat&ent an original te2t of t$eIF*S! unle!! t$ere i! a !ignificant %ublic !ector i!!ue '$ic$ 'arrant! ae%arture an  9eal! 'it$ %ublic !ector financial re%orting i!!ue! t$at are eit$er not

are!!e b+ aa%ting IF*S! or for '$ic$ IF*S! $ae not been

eelo%e b+ t$e IASB"1-" A! &an+ accrual ba!e IPSAS! are ba!e on IF*S!0 t$e IASBD! Conce%tual

8/9/2019 IPSAS1

4/598

Fra&e'or( for Financial *e%orting i! a releant reference for u!er! of IPSAS!" T$e IPSASB i! currentl+ unerta(ing a %ro@ect to eelo% a %ublic!ector conce%tual fra&e'or( '$ic$0 '$en co&%lete0 'ill be t$e releantreference for u!er! of IPSAS! an ot$er IPSASB %ublication!"15" T$e IPSASB $a! al!o i!!ue a co&%re$en!ie Ca!$ Ba!i! IPSAS t$at inclue!

&anator+ an encourage i!clo!ure! !ection!"Moing fro& t$e Ca!$ Ba!i! to t$e Accrual Ba!i!1" T$e Ca!$ Ba!i! IPSAS encourage! an entit+ to oluntaril+ i!clo!e accrual

 ba!e infor&ation0 alt$oug$ it! core financial !tate&ent! 'ill nonet$ele!! be %re%are uner t$e ca!$ ba!i! of accounting" An entit+ in t$e %roce!! of &oing fro& ca!$ accounting to accrual accounting &a+ 'i!$ to inclue

 %articular accrual ba!e i!clo!ure! uring t$i! %roce!!" T$e !tatu! =for e2a&%le0 auite or unauite> an location of aitional infor&ation =for e2a&%le0 in t$e note! to t$e financial !tate&ent! or in a !e%arate!u%%le&entar+ !ection of t$e financial re%ort> 'ill e%en on t$ec$aracteri!tic! of t$e infor&ation =for e2a&%le0 reliabilit+ an co&%letene!!>

an an+ legi!lation or regulation! goerning financial re%orting 'it$in a @uri!iction"1#" T$e IPSASB al!o atte&%t! to facilitate co&%liance 'it$ accrual ba!e IPSAS!t$roug$ t$e u!e of tran!itional %roi!ion! in certain !tanar!" $eretran!itional %roi!ion! e2i!t0 t$e+ &a+ allo' an entit+ aitional ti&e to &eett$e full re;uire&ent! of a !%ecific accrual ba!e IPSAS or %roie relief fro&certain re;uire&ent! '$en initiall+ a%%l+ing an IPSAS" An entit+ &a+ at an+P*EFACE TO INTE*NATIONAL PUBLIC SECTO* ACCOUNTIN) STAN9A*9SP*EFACE ,,ti&e elect to ao%t t$e accrual ba!i! of accounting in accorance 'it$ IPSAS!"8aing ecie to ao%t accrual accounting in accorance 'it$ IPSAS!0 t$etran!itional %roi!ion! 'oul goern t$e lengt$ of ti&e aailable to &a(e t$etran!ition" On t$e e2%ir+ of t$e tran!itional %roi!ion!0 t$e entit+ re%ort! in fullaccorance 'it$ all accrual ba!e IPSAS!"16" Paragra%$ ,6 of IPSAS 10 Pre!entation of Financial State&ent! inclue! t$efollo'ing re;uire&ent:An entit+ '$o!e financial !tate&ent! co&%l+ 'it$ IPSAS! !$all&a(e an e2%licit an unre!ere !tate&ent of !uc$ co&%liance int$e note!" Financial !tate&ent! !$all not be e!cribe a! co&%l+ing'it$ IPSAS! unle!! t$e+ co&%l+ 'it$ all t$e re;uire&ent! of IPSAS!"

13" IPSAS 1 al!o re;uire! i!clo!ure of t$e e2tent to '$ic$ t$e entit+ $a! a%%liean+ tran!itional %roi!ion!"Aut$orit+ of t$e International Public Sector Accounting Stanar!,4" it$in eac$ @uri!iction0 regulation! &a+ goern t$e i!!ue of general %ur%o!efinancial re%ort! b+ %ublic !ector entitie!" T$e!e regulation! &a+ be in t$efor& of !tatutor+ re%orting re;uire&ent!0 financial re%orting irectie! anin!truction!0 anGor accounting !tanar! %ro&ulgate b+ goern&ent!0regulator+ boie! anGor %rofe!!ional accounting boie! in t$e @uri!ictionconcerne",1" T$e IPSASB beliee! t$at t$e ao%tion of IPSAS!0 toget$er 'it$ i!clo!ure of co&%liance 'it$ t$e&0 'ill lea to a !ignificant i&%roe&ent in t$e ;ualit+ of 

general %ur%o!e financial re%orting b+ %ublic !ector entitie!" T$i!0 in turn0 i!li(el+ to !trengt$en %ublic finance &anage&ent leaing to better infor&e

8/9/2019 IPSAS1

5/598

a!!e!!&ent! of t$e re!ource allocation eci!ion! &ae b+ goern&ent!0t$ereb+ increa!ing tran!%arenc+ an accountabilit+",," T$e IPSASB !trongl+ encourage! t$e ao%tion of IPSAS! an t$e$ar&oniation of national re;uire&ent! 'it$ IPSAS!" T$e IPSASBac(no'lege! t$e rig$t of goern&ent! an national !tanar

e!tabli!$ accounting !tanar! an guieline! for financial re%orting in t$eir  @uri!iction!" So&e !oereign goern&ent! an national !tanar

P*EFACE ,/effort! i! e%enent u%on t$e recognition an !u%%ort for it! 'or( fro& &an+ifferent intere!te grou%! acting 'it$in t$e li&it! of t$eir o'n @uri!iction"Language,-" T$e official te2t of t$e IPSAS! an ot$er %ublication! i! t$at a%%roe b+ t$eIPSASB in t$e Engli!$ language" Me&ber boie! of IFAC are aut$orie to

 %re%are0 after obtaining IFAC a%%roal0 tran!lation! of !uc$ %ronounce&ent!at t$eir o'n co!t0 to be i!!ue in t$e language of t$eir o'n @uri!iction! a!a%%ro%riate"CONCEPTUAL F*AMEO*H ,-T8E CONCEPTUAL F*AMEO*H FO* )ENE*ALPU*POSE FINANCIAL *EPO*TIN) B PUBLIC SECTO* ENTITIES8i!tor+ of t$e Conce%tual Fra&e'or( C$a%ter! 1?- of t$e Conce%tual Fra&e'or( 'ere i!!ue in 7anuar+ ,41/"CONCEPTUAL F*AMEO*H ,5T8E CONCEPTUAL F*AMEO*H FO* )ENE*ALPU*POSE FINANCIAL *EPO*TIN) B PUBLIC SECTO* ENTITIESCONTENTSPage

Introuction """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,?,#C$a%ter 1: *ole an Aut$orit+ of t$e Conce%tual Fra&e'or( """"""""""""""""""" ,6?/1C$a%ter ,: Ob@ectie! an U!er! of )eneral Pur%o!e Financial*e%orting """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" /,?-3C$a%ter /: Jualitatie C$aracteri!tic! """""""""""""""""""""""""""""""""""""""""""""""""""""" 54?6C$a%ter -: *e%orting Entit+ """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 3?#-T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H ,Introuction

T$e Conce%tual Fra&e'or( for )eneral Pur%o!e Financial *e%orting b+ PublicSector Entitie! =t$e Conce%tual Fra&e'or(> e!tabli!$e! an &a(e! e2%licit t$e

8/9/2019 IPSAS1

6/598

conce%t! t$at are to be a%%lie in eelo%ing International Public Sector AccountingStanar! =IPSAS!> an *eco&&ene Practice )uieline! =*P)!> a%%licable to t$e

 %re%aration an %re!entation of general %ur%o!e financial re%ort! =)PF*!> of %ublic!ector entitie!"IPSAS! are eelo%e to a%%l+ acro!! countrie! an @uri!iction! 'it$ ifferent

 %olitical !+!te&!0 ifferent for&! of goern&ent an ifferent in!titutional ana&ini!tratie arrange&ent! for t$e elier+ of !erice! to con!tituent!" T$eInternational Public Sector Accounting Stanar! Boar =IPSASB> recognie! t$eier!it+ of for&! of goern&ent0 !ocial an cultural traition!0 an !erice elier+&ec$ani!&! t$at e2i!t in t$e &an+ @uri!iction! t$at &a+ ao%t IPSAS!" Ineelo%ing t$i! Conce%tual Fra&e'or(0 t$e IPSASB $a! atte&%te to re!%on to ane&brace t$at ier!it+"T$e Accrual Ba!i! of AccountingT$e Conce%tual Fra&e'or( eal! 'it$ conce%t! t$at a%%l+ to general %ur%o!efinancial re%orting =financial re%orting> uner t$e accrual ba!i! of accounting"Uner t$e accrual ba!i! of accounting0 tran!action! an ot$er eent! are recognie

in financial !tate&ent! '$en t$e+ occur =an not onl+ '$en ca!$ or it! e;uialent i!receie or %ai>" T$erefore0 t$e tran!action! an eent! are recore in t$eaccounting recor! an recognie in t$e financial !tate&ent! of t$e %erio! to '$ic$t$e+ relate"Financial !tate&ent! %re%are uner t$e accrual ba!i! of accounting infor& u!er! of t$o!e !tate&ent! of %a!t tran!action! inoling t$e %a+&ent an recei%t of ca!$uring t$e re%orting %erio0 obligation! to %a+ ca!$ or !acrifice ot$er re!ource! of t$eentit+ in t$e future0 t$e re!ource! of t$e entit+ at t$e re%orting ate an c$ange! int$o!e obligation! an re!ource! uring t$e re%orting %erio" T$erefore0 t$e+ %roieinfor&ation about %a!t tran!action! an ot$er eent! t$at i! &ore u!eful to u!er! for accountabilit+ %ur%o!e! an a! in%ut for eci!ion &a(ing0 t$an i! infor&ation

 %roie b+ t$e ca!$ ba!i! or ot$er ba!e! of accounting or financial re%orting"T$e Conce%tual Fra&e'or(: C$a%ter! 1?-T$e IPSASB i! currentl+ in t$e %roce!! of eelo%ing t$e Conce%tual Fra&e'or("Alt$oug$ all t$e co&%onent! of t$e Conce%tual Fra&e'or( are interconnecte0 t$eConce%tual Fra&e'or( %ro@ect i! being eelo%e in %$a!e!" P$a!e 1 $a! no' beenco&%lete" It co&%ri!e! C$a%ter! 1?- of t$e Conce%tual Fra&e'or(" T$e!e C$a%ter!eal 'it$:  C$a%ter 1: *ole an Aut$orit+ of t$e Conce%tual Fra&e'or(   C$a%ter ,: Ob@ectie! an U!er! of )eneral Pur%o!e Financial *e%orting

T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL

*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H ,#  C$a%ter /: Jualitatie C$aracteri!tic!  C$a%ter -: *e%orting Entit+

T$e ot$er P$a!e! of t$e Fra&e'or( being eelo%e eal 'it$:  P$a!e ,.T$e efinition an recognition of t$e ele&ent! of financial

!tate&ent!  P$a!e /KT$e &ea!ure&ent of t$e ele&ent! t$at are recognie in t$e

financial !tate&ent!  P$a!e -KT$e %re!entation of infor&ation in general %ur%o!e financial re%ort!

CONCEPTUAL F*AMEO*H ,67anuar+ ,41/

8/9/2019 IPSAS1

7/598

C8APTE* 1: *OLE AN9 AUT8O*IT OF T8ECONCEPTUAL F*AMEO*H CONTENTSPage*ole of t$e Conce%tual Fra&e'or( """""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,3

Aut$orit+ of t$e Conce%tual Fra&e'or( """"""""""""""""""""""""""""""""""""""""""""""""""" ,3)eneral Pur%o!e Financial *e%ort! """""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,3?/4A%%licabilit+ of t$e Conce%tual Fra&e'or( """""""""""""""""""""""""""""""""""""""""""""" /4Ba!i! for Conclu!ion! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" /1T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H ,3C$a%ter 1: *ole an Aut$orit+ of t$e Conce%tual Fra&e'or( *ole of t$e Conce%tual Fra&e'or( 1"1 T$e Conce%tual Fra&e'or( for )eneral Pur%o!e Financial *e%orting b+

Public Sector Entitie! =t$e Conce%tual Fra&e'or(> e!tabli!$e! t$e conce%t!t$at uner%in general %ur%o!e financial re%orting =financial re%orting> b+

 %ublic !ector entitie! t$at ao%t t$e accrual ba!i! of accounting" T$eInternational Public Sector Accounting Stanar! Boar =IPSASB> 'ill a%%l+t$e!e conce%t! in eelo%ing International Public Sector AccountingStanar! =IPSAS!> an *eco&&ene Practice )uieline! =*P)!>a%%licable to t$e %re%aration an %re!entation of general %ur%o!e financialre%ort! =)PF*!> of %ublic !ector entitie!"Aut$orit+ of t$e Conce%tual Fra&e'or( 1", T$e Conce%tual Fra&e'or( oe! not e!tabli!$ aut$oritatie re;uire&ent! for financial re%orting b+ %ublic !ector entitie! t$at ao%t IPSAS!0 nor oe! itoerrie t$e re;uire&ent! of IPSAS! or *P)!" Aut$oritatie re;uire&ent!relating to t$e recognition0 &ea!ure&ent an %re!entation of tran!action! anot$er eent! an actiitie! t$at are re%orte in )PF*! are !%ecifie in IPSAS!"1"/ T$e Conce%tual Fra&e'or( can %roie guiance in ealing 'it$ financialre%orting i!!ue! not ealt 'it$ b+ IPSAS! or *P)!" In t$e!e circu&!tance!0

 %re%arer! an ot$er! can refer to an con!ier t$e a%%licabilit+ of t$eefinition!0 recognition criteria0 &ea!ure&ent %rinci%le!0 an ot$er conce%t!ientifie in t$e Conce%tual Fra&e'or(")eneral Pur%o!e Financial *e%ort!1"- )PF*! are a central co&%onent of0 an !u%%ort an en$ance0 tran!%arent

financial re%orting b+ goern&ent! an ot$er %ublic !ector entitie!" )PF*! arefinancial re%ort! intene to &eet t$e infor&ation nee! of u!er! '$o areunable to re;uire t$e %re%aration of financial re%ort! tailore to &eet t$eir !%ecific infor&ation nee!"1"5 So&e u!er! of financial infor&ation &a+ $ae t$e aut$orit+ to re;uire t$e

 %re%aration of re%ort! tailore to &eet t$eir !%ecific infor&ation nee!" $ile!uc$ %artie! &a+ fin t$e infor&ation %roie b+ )PF*! u!eful for t$eir 

 %ur%o!e!0 )PF*! are not eelo%e to !%ecificall+ re!%on to t$eir %articular infor&ation nee!"1" )PF*! are li(el+ to co&%ri!e &ulti%le re%ort!0 eac$ re!%oning &ore irectl+to certain a!%ect! of t$e ob@ectie! of financial re%orting an &atter! inclue

'it$in t$e !co%e of financial re%orting" )PF*! enco&%a!! financial!tate&ent! incluing t$eir note! =$ereafter referre to a! financial !tate&ent!0

8/9/2019 IPSAS1

8/598

unle!! !%ecifie ot$er'i!e>0 an t$e %re!entation of infor&ation t$at en$ance!0co&%le&ent! an !u%%le&ent! t$e financial !tate&ent!"T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIES

CONCEPTUAL F*AMEO*H /41"# T$e !co%e of financial re%orting e!tabli!$e! t$e bounar+ aroun t$etran!action!0 ot$er eent! an actiitie! t$at &a+ be re%orte in )PF*!" T$e!co%e of financial re%orting i! eter&ine b+ t$e infor&ation nee! of t$e

 %ri&ar+ u!er! of )PF*! an t$e ob@ectie! of financial re%orting" T$e factor!t$at eter&ine '$at &a+ be enco&%a!!e 'it$in t$e !co%e of financialre%orting are outline in t$e follo'ing C$a%ter of t$e Conce%tual Fra&e'or("=See C$a%ter ,: Ob@ectie! an U!er! of )eneral Pur%o!e Financial*e%orting">A%%licabilit+ of t$e Conce%tual Fra&e'or( 1"6 T$e Conce%tual Fra&e'or( a%%lie! to financial re%orting b+ %ublic !ector 

entitie! t$at a%%l+ IPSAS!" T$erefore0 it a%%lie! to )PF*! of national0!tateG%roincial an local goern&ent!" It al!o a%%lie! to a 'ie range of ot$er 

 %ublic !ector entitie! incluing:  )oern&ent &ini!trie!0 e%art&ent!0 %rogra&!0 boar!0 co&&i!!ion!0

agencie!  Public !ector !ocial !ecurit+ fun!0 tru!t!0 an !tatutor+ aut$oritie! an  International goern&ental organiation!"

T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H /1Ba!i! for Conclu!ion!T$i! Ba!i! for Conclu!ion! acco&%anie!0 but i! not %art of0 t$e Conce%tualFra&e'or("*ole an Aut$orit+ of t$e Conce%tual Fra&e'or( BC1"1 T$e Conce%tual Fra&e'or( ientifie! t$e conce%t! t$at t$e IPSASB 'illa%%l+ in eelo%ing IPSAS! an *P)! intene to a!!i!t %re%arer! anot$er! in ealing 'it$ financial re%orting i!!ue!" IPSAS! !%ecif+aut$oritatie re;uire&ent!" IPSAS! an *P)! are eelo%e after a%%lication of a ue %roce!! '$ic$ %roie! t$e o%%ortunit+ for intere!te

 %artie! to %roie in%ut on t$e !%ecific re;uire&ent! %ro%o!e0 incluing

t$eir co&%atibilit+ 'it$ current %ractice! in ifferent @uri!iction!"BC1", T$e Conce%tual Fra&e'or( uner%in! t$e eelo%&ent of IPSAS!"T$erefore0 it $a! releance for all entitie! t$at a%%l+ IPSAS!" )PF*!

 %re%are at t$e '$ole

8/9/2019 IPSAS1

9/598

re%ort!")eneral Pur%o!e Financial *e%ort!BC1"- T$e Conce%tual Fra&e'or( ac(no'lege! t$at0 to re!%on to u!erD!infor&ation nee!0 )PF*! &a+ inclue infor&ation t$at en$ance!0co&%le&ent!0 an !u%%le&ent! t$e financial !tate&ent!" T$erefore0 t$e

Conce%tual Fra&e'or( reflect! a !co%e for financial re%orting t$at i! &oreco&%re$en!ie t$an t$at enco&%a!!e b+ financial !tate&ent!" T$efollo'ing C$a%ter of t$i! Fra&e'or( =C$a%ter ,: Ob@ectie! an U!er! of )eneral Pur%o!e Financial *e%orting> ientifie! t$e ob@ectie! of financialre%orting an t$e %ri&ar+ u!er! of )PF*!" It al!o outline! t$e con!e;uence!of t$e %ri&ar+ u!er!D li(el+ infor&ation nee! for '$at &a+ be enco&%a!!e'it$in t$e !co%e of financial re%orting"CONCEPTUAL F*AMEO*H /,7anuar+ ,41/C8APTE* ,: OB7ECTIVES AN9 USE*S OF )ENE*ALPU*POSE FINANCIAL *EPO*TIN)

CONTENTSPageOb@ectie! of Financial *e%orting """""""""""""""""""""""""""""""""""""""""""""""""""""""""""" //U!er! of )eneral Pur%o!e Financial *e%ort! """""""""""""""""""""""""""""""""""""""""""" //?/-Accountabilit+ an 9eci!ion Ma(ing """"""""""""""""""""""""""""""""""""""""""""""""""""""" /-?/5Infor&ation Nee! of Serice *eci%ient! an *e!ource Proier! """""""""""" /5?/#Infor&ation Proie b+ )eneral Pur%o!e Financial *e%ort! """""""""""""""""""" /#?-4Financial Po!ition0 Financial Perfor&ance an Ca!$ Flo'! """"""""""""""" /#?/6Buget Infor&ation an Co&%liance 'it$ Legi!lation or Ot$er Aut$orit+ )oerning t$e *ai!ing an U!e of *e!ource! """"""""""""" /6?/3Serice 9elier+ Ac$iee&ent! """""""""""""""""""""""""""""""""""""""""""""""""""""""" /3Pro!%ectie Financial an Non

8/9/2019 IPSAS1

10/598

!erice! to citien! an ot$er !erice reci%ient!" T$e!e entitie! are accountablefor t$eir &anage&ent an u!e of re!ource! to t$o!e t$at %roie t$e& 'it$re!ource!0 an to t$o!e t$at e%en on t$e& to u!e t$o!e re!ource! to elier nece!!ar+ !erice!" T$o!e t$at %roie t$e re!ource! an receie0 or e2%ect toreceie0 t$e !erice! al!o re;uire infor&ation a! in%ut for eci!ion

8/9/2019 IPSAS1

11/598

,"# T$e %ri&ar+ function of goern&ent! an ot$er %ublic !ector entitie! i! to %roie !erice! t$at en$ance or &aintain t$e 'ell

8/9/2019 IPSAS1

12/598

entit+ or '$et$er to %urc$a!e or con!u&e t$e !erice! %roie"8o'eer0 !erice reci%ient! an re!ource %roier! can &a(e eci!ion!about t$eir oting %reference!0 an re%re!entation! t$e+ &a(e to electeofficial! or ot$er re%re!entatie boie!Kt$e!e eci!ion! &a+ $aere!ource allocation con!e;uence! for certain %ublic !ector entitie!"

,"14 Infor&ation %roie in )PF*! for accountabilit+ %ur%o!e! 'ill contribute to0an infor&0 eci!ion &a(ing" For e2a&%le0 infor&ation about t$e co!t!0efficienc+ an effectiene!! of %a!t !erice elier+ actiitie!0 t$e a&ount an!ource! of co!t recoer+0 an t$e re!ource! aailable to !u%%ort futureactiitie! 'ill be nece!!ar+ for t$e i!c$arge of accountabilit+" T$i!infor&ation 'ill al!o be u!eful for eci!ion &a(ing b+ u!er! of )PF*!0incluing eci!ion! t$at onor! an ot$er financial !u%%orter! &a(e about

 %roiing re!ource! to t$e entit+"Infor&ation Nee! of Serice *eci%ient! an *e!ource Proier!,"11 For accountabilit+ an eci!ion an

!olenc+ =for e2a&%le0 abilit+ to &eet obligation! oer t$e long ter&>of t$e entit+  T$e !u!tainabilit+ of t$e entit+D! !erice elier+ an ot$er o%eration!

oer t$e long ter&0 an c$ange! t$erein a! a re!ult of t$e actiitie! of t$e entit+ uring t$e re%orting %erio incluing0 for e2a&%le: T$e ca%acit+ of t$e entit+ to continue to fun it! actiitie! an to&eet it! o%erational ob@ectie! in t$e future =it! financialca%acit+>0 incluing t$e li(el+ !ource! of funing an t$e e2tent

to '$ic$ t$e entit+ i! e%enent on0 an t$erefore ulnerable to0funing or e&an %re!!ure! out!ie it! control an T$e %$+!ical an ot$er re!ource! currentl+ aailable to !u%%ortt$e %roi!ion of !erice! in future %erio! =it! o%erationalca%acit+> an  T$e ca%acit+ of t$e entit+ to aa%t to c$anging circu&!tance!0 '$et$er 

c$ange! in e&ogra%$ic! or c$ange! in o&e!tic or global econo&icconition! '$ic$ are li(el+ to i&%act t$e nature or co&%o!ition of t$eactiitie! it unerta(e! an t$e !erice! it %roie!","1, T$e infor&ation !erice reci%ient! an re!ource %roier! nee for t$e!e

 %ur%o!e! i! li(el+ to oerla% in &an+ re!%ect!" For e2a&%le0 !erice reci%ient!

'ill re;uire infor&ation a! in%ut to a!!e!!&ent! of !uc$ &atter! a! '$et$er:  T$e entit+ i! u!ing re!ource! econo&icall+0 efficientl+0 effectiel+ an

8/9/2019 IPSAS1

13/598

a! intene0 an '$et$er !uc$ u!e i! in t$eir intere!t  T$e range0 olu&e an co!t of !erice! %roie uring t$e re%orting

 %erio are a%%ro%riate0 an t$e a&ount! an !ource! of t$eir co!trecoerie! an  Current leel! of ta2e! or ot$er re!ource! rai!e are !ufficient to

&aintain t$e olu&e an ;ualit+ of !erice! currentl+ %roie"Serice reci%ient! 'ill al!o re;uire infor&ation about t$e con!e;uence! of eci!ion! &ae0 an actiitie! unerta(en0 b+ t$e entit+ uring t$e re%orting

 %erio on t$e re!ource! aailable to !u%%ort t$e %roi!ion of !erice! in future %erio!0 t$e entit+D! antici%ate future !erice elier+ actiitie! anob@ectie!0 an t$e a&ount! an !ource! of co!t recoerie! nece!!ar+ to!u%%ort t$o!e actiitie!","1/ *e!ource %roier! 'ill re;uire infor&ation a! in%ut to a!!e!!&ent! of !uc$&atter! a! '$et$er t$e entit+:T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) B

PUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H /#  I! ac$ieing t$e ob@ectie! e!tabli!$e a! t$e @u!tification for t$e

re!ource! rai!e uring t$e re%orting %erio  Fune current o%eration! fro& fun! rai!e in t$e current %erio fro&

ta2%a+er! or fro& borro'ing! or ot$er !ource! an  I! li(el+ to nee aitional =or le!!> re!ource! in t$e future0 an t$e

li(el+ !ource! of t$o!e re!ource!"Lener! an creitor! 'ill re;uire infor&ation a! in%ut to a!!e!!&ent! of t$eli;uiit+ of t$e entit+ an0 t$erefore0 '$et$er t$e a&ount an ti&ing of re%a+&ent 'ill be a! agree" 9onor! 'ill re;uire infor&ation to !u%%orta!!e!!&ent! of '$et$er t$e entit+ i! u!ing re!ource! econo&icall+0 efficientl+0effectiel+ an a! intene" T$e+ 'ill al!o re;uire infor&ation about t$eentit+D! antici%ate future !erice elier+ actiitie! an re!ource nee!"Infor&ation Proie b+ )eneral Pur%o!e Financial *e%ort!Financial Po!ition0 Financial Perfor&ance an Ca!$ Flo'!,"1- Infor&ation about t$e financial %o!ition of a goern&ent or ot$er %ublic!ector entit+ 'ill enable u!er! to ientif+ t$e re!ource! of t$e entit+ an clai&!to t$o!e re!ource! at t$e re%orting ate" T$i! 'ill %roie infor&ation u!efula! in%ut to a!!e!!&ent! of !uc$ &atter! a!:  T$e e2tent to '$ic$ &anage&ent $a! i!c$arge it! re!%on!ibilitie! for 

!afe(ee%ing an &anaging t$e re!ource! of t$e entit+  T$e e2tent to '$ic$ re!ource! are aailable to !u%%ort future !ericeelier+ actiitie!0 an c$ange! uring t$e re%orting %erio in t$ea&ount an co&%o!ition of t$o!e re!ource! an clai&! to t$o!ere!ource! an  T$e a&ount! an ti&ing of future ca!$ flo'! nece!!ar+ to !erice an

re%a+ e2i!ting clai&! to t$e entit+D! re!ource!","15 Infor&ation about t$e financial %erfor&ance of a goern&ent or ot$er %ublic!ector entit+ 'ill infor& a!!e!!&ent! of &atter! !uc$ a! '$et$er t$e entit+ $a!ac;uire re!ource! econo&icall+0 an u!e t$e& efficientl+ an effectiel+ toac$iee it! !erice elier+ ob@ectie!" Infor&ation about t$e co!t! of !erice

elier+ an t$e a&ount! an !ource! of co!t recoer+ uring t$e re%orting %erio 'ill a!!i!t u!er! to eter&ine '$et$er o%erating co!t! 'ere recoere

8/9/2019 IPSAS1

14/598

fro&0 for e2a&%le0 ta2e!0 u!er c$arge!0 contribution! an tran!fer!0 or 'erefinance b+ increa!ing t$e leel of inebtene!! of t$e entit+","1 Infor&ation about t$e ca!$ flo'! of a goern&ent or ot$er %ublic !ector entit+contribute! to a!!e!!&ent! of financial %erfor&ance an t$e entit+D! li;uiit+an !olenc+" It inicate! $o' t$e entit+ rai!e an u!e ca!$ uring t$e

 %erio0 incluing it! borro'ing an re%a+&ent of borro'ing an it!ac;ui!ition an !ale of0 for e2a&%le0 %ro%ert+0 %lant0 an e;ui%&ent" It al!oT8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H /6ientifie! t$e ca!$ receie fro&0 for e2a&%le0 ta2e! an ine!t&ent! an t$eca!$ tran!fer! &ae to0 an receie fro&0 ot$er goern&ent!0 goern&entagencie! or international organiation!" Infor&ation about ca!$ flo'! can al!o!u%%ort a!!e!!&ent! of t$e entit+D! co&%liance 'it$ !%ening &anate!e2%re!!e in ca!$ flo' ter&!0 an infor& a!!e!!&ent! of t$e li(el+ a&ount!

an !ource! of ca!$ inflo'! neee in future %erio! to !u%%ort !ericeelier+ ob@ectie!","1# Infor&ation about financial %o!ition0 financial %erfor&ance an ca!$ flo'! aret+%icall+ %re!ente in financial !tate&ent!" To a!!i!t u!er! to better uner!tan0 inter%ret an %lace in conte2t t$e infor&ation %re!ente in t$efinancial !tate&ent!0 )PF*! &a+ al!o %roie financial an non

8/9/2019 IPSAS1

15/598

!ur%lu! or eficit0 %rofit or lo!!0 or b+ ot$er ter&!>0 %erfor&ance an ca!$T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H /3

flo'! of t$e entit+ uring t$e re%orting %erio0 it! a!!et! an liabilitie! at t$ere%orting ate an t$e c$ange t$erein uring t$e re%orting %erio0 an it!!erice elier+ ac$iee&ent!",",1 T$e inclu!ion 'it$in )PF*! of infor&ation t$at a!!i!t! u!er! in a!!e!!ing t$ee2tent to '$ic$ reenue!0 e2%en!e!0 ca!$ flo'! an financial re!ult! of t$eentit+ co&%l+ 'it$ t$e e!ti&ate! reflecte in a%%roe buget!0 an t$eentit+D! a$erence to releant legi!lation or ot$er aut$orit+ goerning t$erai!ing an u!e of re!ource!0 i! i&%ortant in eter&ining $o' 'ell a %ublic!ector entit+ $a! &et it! financial ob@ectie!" Suc$ infor&ation i! nece!!ar+ for t$e i!c$arge of a goern&entD! or ot$er %ublic !ector entit+D! accountabilit+to it! con!tituent!0 en$ance! t$e a!!e!!&ent of t$e financial %erfor&ance of 

t$e entit+ an 'ill infor& eci!ion &a(ing"Serice 9elier+ Ac$iee&ent!,",, T$e %ri&ar+ ob@ectie of goern&ent! an &o!t %ublic !ector entitie! i! to

 %roie neee !erice! to con!tituent!" Con!e;uentl+0 t$e financial %erfor&ance of goern&ent! an &o!t %ublic !ector entitie! 'ill not be full+or ae;uatel+ reflecte in an+ &ea!ure of financial re!ult!" T$erefore0 t$eir financial re!ult! 'ill nee to be a!!e!!e in t$e conte2t of t$e ac$iee&ent of !erice elier+ ob@ectie!",",/ In !o&e ca!e!0 ;uantitatie &ea!ure! of t$e out%ut! an outco&e! of t$eentit+D! !erice elier+ actiitie! uring t$e re%orting %erio 'ill %roiereleant infor&ation about t$e ac$iee&ent of !erice elier+ob@ectie!Kfor e2a&%le0 infor&ation about t$e co!t0 olu&e0 an fre;uenc+of !erice elier+0 an t$e relation!$i% of !erice! %roie to t$e re!ource

 ba!e of t$e entit+" In ot$er ca!e!0 t$e ac$iee&ent of !erice elier+ob@ectie! &a+ nee to be co&&unicate b+ an e2%lanation of t$e ;ualit+ of 

 %articular !erice! %roie or t$e outco&e of certain %rogra&!",",- *e%orting non

8/9/2019 IPSAS1

16/598

onl+ beco&e clear &an+ +ear! into t$e future" Financial !tate&ent! '$ic$ %re!ent infor&ation about financial %o!ition at a %oint in ti&e an financial %erfor&ance an ca!$ flo'! oer t$e re%orting %erio 'ill t$en nee to bea!!e!!e in t$e conte2t of t$e long ter&",", 9eci!ion! &ae b+ a goern&ent or ot$er %ublic !ector entit+ in a %articular 

 %erio about %rogra&! for eliering an funing !erice! in t$e future can$ae !ignificant con!e;uence! for:  Con!tituent! '$o 'ill be e%enent on t$o!e !erice! in t$e future an  Current an future generation! of ta2%a+er! an ot$er inoluntar+

re!ource %roier! '$o 'ill %roie t$e ta2e! an leie! to fun t$e %lanne !erice elier+ actiitie! an relate financial co&&it&ent!",",# Infor&ation about t$e entit+D! antici%ate future !erice elier+ actiitie! anob@ectie!0 t$eir li(el+ i&%act on t$e future re!ource nee! of t$e entit+ ant$e li(el+ !ource! of funing for !uc$ re!ource!0 'ill be nece!!ar+ a! in%ut toan+ a!!e!!&ent of t$e abilit+ of t$e goern&ent or ot$er %ublic !ector entit+ to&eet it! !erice elier+ an financial co&&it&ent! in t$e future" T$e

i!clo!ure of !uc$ infor&ation in )PF*! 'ill !u%%ort a!!e!!&ent! of t$e!u!tainabilit+ of !erice elier+ b+ a goern&ent or ot$er %ublic !ector entit+0 en$ance t$e accountabilit+ of t$e entit+ an %roie aitionalinfor&ation u!eful for eci!ion

8/9/2019 IPSAS1

17/598

Ot$er Source! of Infor&ation,"/1 )PF*! %la+ a !ignificant role in co&&unicating infor&ation nece!!ar+ to!u%%ort t$e i!c$arge of a goern&entD! or ot$er %ublic !ector entit+D!obligation to be accountable0 a! 'ell a! %roiing infor&ation u!eful a! in%utfor eci!ion

8/9/2019 IPSAS1

18/598

accountable to t$e citien! or t$eir re%re!entatie! an0 in &an+ @uri!iction!0t$e legi!lature an iniiual &e&ber! of %arlia&ent =or !i&ilar re%re!entatie bo+> acting on be$alf of citien! are t$e &ain u!er! of )PF*!" So&e re!%onent! al!o e2%re!!e t$e ie' t$at onl+ re!ource

 %roier! an t$eir re%re!entatie! !$oul be ientifie a! t$e %ri&ar+ u!er!

of )PF*! of %ublic !ector entitie!" T$e+ e2%laine t$at it i! unli(el+ t$at)PF*! 'oul be able to re!%on to t$e infor&ation nee! of all u!er!0 anre!ource %roier! are li(el+ to $ae t$e greate!t intere!t in )PF*!"T$erefore0 ientif+ing re!ource %roier! a! t$e %ri&ar+ u!er grou% 'illallo' t$e IPSASB to focu! &ore !$ar%l+ on t$e infor&ation nee! of a !ingle,Con!ultation Pa%er0 Conce%tual Fra&e'or( for )eneral Pur%o!e Financial *e%orting b+PublicSector Entitie!: T$e Ob@ectie! of Financial *e%orting T$e Sco%e of Financial *e%ortingT$eJualitatie C$aracteri!tic! of Infor&ation Inclue in )eneral Pur%o!e Financial *e%ort!

T$e*e%orting Entit+"T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H -/u!er grou%" T$e+ al!o note t$at )PF*! %re%are to re!%on to t$einfor&ation nee! of re!ource %roier! are li(el+ to al!o %roieinfor&ation u!eful to ot$er %otential u!er!"BC,"- T$e IPSASB ac(no'lege! t$at t$ere i! &erit in &an+ of t$e %ro%o!al! &ae

 b+ re!%onent! regaring t$e ientit+ of t$e %ri&ar+ u!er! of )PF*! of  %ublic !ector entitie!0 %articularl+ a! t$e+ a%%l+ to goern&ent! in &an+ @uri!iction!" 8o'eer0 gien t$e ob@ectie! of financial re%orting b+ %ublic!ector entitie!0 t$e IPSASB re&ain! of t$e ie' t$at t$e %ri&ar+ u!er! of )PF*! of %ublic !ector entitie! !$oul be ientifie a! !erice reci%ient! ant$eir re%re!entatie! an re!ource %roier! an t$eir re%re!entatie!" T$i! i!

 becau!e:  )oern&ent! an ot$er %ublic !ector entitie! are accountable to t$o!e

t$at e%en on t$e& to u!e re!ource! to elier nece!!ar+ !erice!0 a!'ell a! to t$o!e t$at %roie t$e& 'it$ t$e re!ource! t$at enable t$eelier+ of t$o!e !erice! an

  )PF*! $ae a !ignificant role in t$e i!c$arge of t$at accountabilit+an t$e %roi!ion of infor&ation u!eful to t$o!e u!er! for eci!ion<&a(ing %ur%o!e!"A! !uc$0 )PF*! !$oul be eelo%e to re!%on to t$e infor&ation nee! of !erice reci%ient! an t$eir re%re!entatie! an re!ource %roier! an t$eir re%re!entatie! a! t$e %ri&ar+ u!er!" In aition0 t$e Conce%tual Fra&e'or( 'ill a%%l+ to goern&ent! an a %otentiall+ 'ie range of ot$er %ublic !ector entitie! in &an+ ifferent @uri!iction!0 an to international goern&entalorganiation!" Con!e;uentl+0 it i! not clear t$at ientification of ot$er u!er grou%! a! t$e %ri&ar+ u!er! of )PF*! 'ill be releant0 an o%erateeffectiel+0 for all %ublic !ector entitie! acro!! all @uri!iction!"

BC,"5 T$e IPSASB acce%t! t$at !o&e infor&ation in )PF*! &a+ be of &oreintere!t an greater u!e to !o&e u!er! t$an ot$er!" T$e IPSASB al!o acce%t!

8/9/2019 IPSAS1

19/598

t$at0 in eelo%ing IPSAS! an *P)!0 it 'ill nee to con!ier an0 in !o&eca!e!0 balance t$e nee! of ifferent grou%! of %ri&ar+ u!er!" 8o'eer0 t$eIPSASB oe! not beliee t$at !uc$ &atter! inaliate t$e ientification of 

 bot$ !erice reci%ient! an t$eir re%re!entatie! an re!ource %roier! ant$eir re%re!entatie! a! t$e %ri&ar+ u!er! of )PF*!"

BC," T$e IPSASBD! ie'! on t$e relation!$i% bet'een t$e %ri&ar+ u!er grou%!ientifie b+ re!%onent!0 an !erice reci%ient! an re!ource %roier! arefurt$er elaborate belo'"Citien!BC,"# T$e IPSASB ac(no'lege! t$e i&%ortance of citien!0 t$e %ublic an t$eir re%re!entatie! a! u!er! of )PF*!0 but i! of t$e ie' t$at cla!!if+ing citien!a! !erice reci%ient! an re!ource %roier! %roie! a ba!i! for a!!e!!ingT8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H --

t$eir %otential infor&ation nee!" T$i! i! becau!e citien! enco&%a!! &an+iniiual! 'it$ a %otentiall+ 'ie range of ier!e infor&ation nee!. focu!ing on t$e infor&ation nee! of citien! a! !erice reci%ient! anre!ource %roier! enable! t$e IPSASB to ra' toget$er t$o!e ier!eintere!t! an e2%lore '$at infor&ation nee! )PF*! !$oul atte&%t tore!%on to" T$e IPSASB i! al!o of t$e ie' t$at0 in eelo%ing IPSAS!0 it i!a%%ro%riate t$at it $a! t$e ca%acit+ to con!ier t$e infor&ation nee! of arange of !erice reci%ient! an re!ource %roier! '$o &a+ not be citien!=incluing onor! an lener!> an o not %o!!e!! t$e aut$orit+ to re;uire a

 %ublic !ector entit+ to i!clo!e t$e infor&ation t$e+ nee for accountabilit+an eci!ion

8/9/2019 IPSAS1

20/598

T$e Legi!latureBC,"14 T$e IPSASB i! of t$e ie' t$at t$e legi!lature or !i&ilar goerning bo+ i! a

 %ri&ar+ u!er of )PF*! in it! ca%acit+ a! a re%re!entatie of !ericereci%ient! an re!ource %roier!" T$e legi!lature0 %arlia&ent!0 council! an!i&ilar boie! 'ill al!o re;uire infor&ation for t$eir o'n !%ecific

accountabilit+ an eci!ion

8/9/2019 IPSAS1

21/598

!$oul be ientifie a! t$e ob@ectie! of financial re%orting b+ %ublic !ector entitie!" So&e re!%onent! aocate t$at onl+ accountabilit+ be ientifiea! t$e !ingle or o&inant ob@ectie of financial re%orting b+ %ublic !ector T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) B

PUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H -entitie! ot$er re!%onent! aocate t$at eci!ion &a(ing !$oul beientifie a! t$e !ingle ob@ectie" 8o'eer0 t$e IPSASB re&ain! of t$e ie't$at u!er! of )PF*! of %ublic !ector entitie! 'ill re;uire infor&ation for bot$accountabilit+ an eci!ion

8/9/2019 IPSAS1

22/598

PUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H -#t$at aitional guiance on non

8/9/2019 IPSAS1

23/598

 %ro%o!e in t$e E2%o!ure 9raft 'a! too o%en ene anGor not ae;uatel+e2%laine or @u!tifie.in !o&e ca!e! %ro%o!ing t$at t$e !co%e be li&ite toen$ance&ent of &atter! recognie in t$e financial !tate&ent!"BC,",, T$e IPSASB $a! re!%one to t$e!e concern! b+ clarif+ing t$e lin(age!

 bet'een t$e !co%e of financial re%orting an u!er!D infor&ation nee!0 an

incluing aitional e2%lanation of t$e relation!$i% bet'een u!er!Dinfor&ation nee! an t$e infor&ation t$at )PF*! &a+ %roie in re!%on!e"In aition0 t$e IPSASB $a! clarifie t$at t$e !co%e of general %ur%o!efinancial re%orting i! li&ite to t$e financial !tate&ent! an infor&ation t$aten$ance!0 co&%le&ent! an !u%%le&ent! t$e financial !tate&ent!"Con!e;uentl+0 '$at i! inclue in t$e &ore co&%re$en!ie !co%e of financial re%orting 'ill be erie fro& financial !tate&ent!0 an li&ite to&atter! t$at a!!i!t u!er! to better uner!tan an %ut in conte2t t$einfor&ation inclue in t$o!e !tate&ent!"*e!ource Con!ieration!0 Aut$oritatie *e;uire&ent! an Auit Statu!BC,",/ Man+ re!%onent!0 '$et$er !u%%ortie or o%%o!e to t$e %ro%o!al! in t$e

E2%o!ure 9raft0 e2%re!!e concern t$at ealing 'it$ broa !co%e i!!ue!'oul ab!orb too &uc$ of t$e IPSASBD! re!ource! an li&it it! abilit+ toeal 'it$ financial !tate&ent i!!ue!" So&e re!%onent! to t$e E2%o!ure 9raftal!o:  Aocate t$at t$e Conce%tual Fra&e'or( clarif+ t$at aut$oritatie

re;uire&ent! 'oul onl+ be eelo%e for financial !tate&ent&atter!0 broaer !co%e i!!ue! being t$e !ub@ect of guieline! an  E2%re!!e concern about t$e auit i&%lication! of incluing non

8/9/2019 IPSAS1

24/598

Fra&e'or(0 or t$e IPSAS! an *P)! t$at &a+ be eelo%e con!i!tent 'it$t$e conce%t! reflecte in t$e Fra&e'or(0 to atte&%t to e!tabli!$ t$e leel of auit a!!urance t$at !$oul be %roie to %articular a!%ect! of )PF*!" T$e;ualitatie c$aracteri!tic! %roie !o&e a!!urance to u!er! about t$e ;ualit+of infor&ation inclue in )PF*!" 8o'eer0 re!%on!ibilitie! for t$e auit of 

financial !tate&ent! an ot$er co&%onent! of )PF*! 'ill be e!tabli!$e b+!uc$ &atter! a! t$e regulator+ fra&e'or( in %lace in %articular @uri!iction!an t$e auit &anate agree 'it$ anGor a%%l+ing to t$e entit+"CONCEPTUAL F*AMEO*H 547anuar+ ,41/C8APTE* /: JUALITATIVE C8A*ACTE*ISTICSCONTENTSPage*eleance """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 51?5,Fait$ful *e%re!entation """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 5,?5/Uner!tanabilit+ """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 5-

Ti&eline!! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 5-Co&%arabilit+ """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 5-?55Verifiabilit+ """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 55?5#Con!traint! on Infor&ation Inclue in )eneral Pur%o!e Financial*e%ort! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 5#?53Materialit+ """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 5#Co!t

8/9/2019 IPSAS1

25/598

;ualitatie c$aracteri!tic! can be ac$iee &a+ iffer e%ening on t$e egreeof uncertaint+ an !ub@ectie a!!e!!&ent or o%inion inole in co&%iling t$efinancial an non

8/9/2019 IPSAS1

26/598

!ub!tance of t$e unerl+ing tran!action0 ot$er eent0 actiit+ or circu&!tanceK'$ic$ i! not nece!!aril+ al'a+! t$e !a&e a! it! legal for&"/"11 In %ractice0 it &a+ not be %o!!ible to (no' or confir& '$et$er infor&ation

 %re!ente in )PF*! i! co&%lete0 neutral0 an free fro& &aterial error"8o'eer0 infor&ation !$oul be a! co&%lete0 neutral0 an free fro& error a! i!

 %o!!ible"/"1, An o&i!!ion of !o&e infor&ation can cau!e t$e re%re!entation of an econo&icor ot$er %$eno&enon to be fal!e or &i!leaing0 an t$u! not u!eful to u!er! of )PF*!" For e2a&%le0 a co&%lete e%iction of t$e ite& %lant an e;ui%&entin )PF*! 'ill inclue a nu&eric re%re!entation of t$e aggregate a&ount of 

 %lant an e;ui%&ent toget$er 'it$ ot$er ;uantitatie0 e!cri%tie ane2%lanator+ infor&ation nece!!ar+ to fait$full+ re%re!ent t$at cla!! of a!!et!"In !o&e ca!e!0 t$i! &a+ inclue t$e i!clo!ure of infor&ation about !uc$&atter! a! t$e &a@or cla!!e! of %lant an e;ui%&ent0 factor! t$at $ae affecteT8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) B

PUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H 5/t$eir u!e in t$e %a!t or &ig$t i&%act on t$eir u!e in t$e future0 an t$e ba!i!an %roce!! for eter&ining t$eir nu&eric re%re!entation" Si&ilarl+0

 %ro!%ectie financial an non

8/9/2019 IPSAS1

27/598

e!cribe" In !o&e ca!e!0 it &a+ be %o!!ible to eter&ine t$e accurac+ of !o&e infor&ation inclue in )PF*!Kfor e2a&%le0 t$e a&ount of a ca!$tran!fer to anot$er leel of goern&ent0 t$e olu&e of !erice! eliere or t$e %rice %ai for t$e ac;ui!ition of %lant an e;ui%&ent" 8o'eer0 in ot$er ca!e! it &a+ notKfor e2a&%le0 t$e accurac+ of an e!ti&ate of t$e alue or 

co!t of an ite& or t$e effectiene!! of a !erice elier+ %rogra& &a+ not beable to be eter&ine" In t$e!e ca!e!0 t$e e!ti&ate 'ill be free fro& &aterialerror if t$e a&ount i! clearl+ e!cribe a! an e!ti&ate0 t$e nature anli&itation! of t$e e!ti&ation %roce!! are e2%laine0 an no &aterial error!$ae been ientifie in !electing an a%%l+ing an a%%ro%riate %roce!! for eelo%ing t$e e!ti&ate"T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H 5-Uner!tanabilit+

/"1# Uner!tanabilit+ i! t$e ;ualit+ of infor&ation t$at enable! u!er! toco&%re$en it! &eaning" )PF*! of %ublic !ector entitie! !$oul %re!entinfor&ation in a &anner t$at re!%on! to t$e nee! an (no'lege ba!e of u!er!0 an to t$e nature of t$e infor&ation %re!ente" For e2a&%le0e2%lanation! of financial an non

8/9/2019 IPSAS1

28/598

 %erio!Kfor e2a&%le0 t$i! &a+ occur in re!%ect of %rogra&! intene toen$ance t$e econo&ic 'ell

8/9/2019 IPSAS1

29/598

T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H 5

 %ro!%ectie financial an non (e+ influence! on t$e entit+D!

 %erfor&ance uring t$e %erio0 =b> t$e antici%ate future effect! or outco&e!of !erice elier+ %rogra&! unerta(en uring t$e re%orting %erio0 an =c> %ro!%ectie financial an non

8/9/2019 IPSAS1

30/598

ao%te in co&%iling t$at infor&ation0 an t$e factor! an circu&!tance! t$at!u%%ort an+ o%inion! e2%re!!e or i!clo!ure! &ae !$oul be tran!%arent"T$i! 'ill enable u!er! to for& @ug&ent! about t$e a%%ro%riatene!! of t$o!ea!!u&%tion! an t$e &et$o of co&%ilation0 &ea!ure&ent0 re%re!entation aninter%retation of t$e infor&ation"

Con!traint! on Infor&ation Inclue in )eneral Pur%o!e Financial *e%ort!Materialit+/"/, Infor&ation i! &aterial if it! o&i!!ion or &i!!tate&ent coul influence t$ei!c$arge of accountabilit+ b+ t$e entit+0 or t$e eci!ion! t$at u!er! &a(e ont$e ba!i! of t$e entit+D! )PF*! %re%are for t$at re%orting %erio" Materialit+e%en! on bot$ t$e nature an a&ount of t$e ite& @uge in t$e %articular circu&!tance! of eac$ entit+" )PF*! &a+ enco&%a!! ;ualitatie an;uantitatie infor&ation about !erice elier+ ac$iee&ent! uring t$ere%orting %erio0 an e2%ectation! about !erice elier+ an financialoutco&e! in t$e future" Con!e;uentl+0 it i! not %o!!ible to !%ecif+ a unifor&;uantitatie t$re!$ol at '$ic$ a %articular t+%e of infor&ation beco&e!

&aterial"/"// A!!e!!&ent! of &aterialit+ 'ill be &ae in t$e conte2t of t$e legi!latie0in!titutional an o%erating eniron&ent 'it$in '$ic$ t$e entit+ o%erate! an0in re!%ect of %ro!%ectie financial an non

8/9/2019 IPSAS1

31/598

infor&ation al!o i&%o!e! co!t!0 incluing t$e co!t! t$at u!er! incur to obtainneee infor&ation fro& ot$er !ource! an t$e co!t! t$at re!ult fro& &a(ingeci!ion! u!ing inco&%lete ata %roie b+ )PF*!"/"/# Pre%arer! e2%en t$e &a@orit+ of t$e effort to %roie infor&ation in )PF*!"8o'eer0 !erice reci%ient! an re!ource %roier! ulti&atel+ bear t$e co!t of 

t$o!e effort!Kbecau!e re!ource! are reirecte fro& !erice elier+actiitie! to %re%aration of infor&ation for inclu!ion in )PF*!"/"/6 U!er! rea% t$e &a@orit+ of benefit! fro& t$e infor&ation %roie b+ )PF*!"8o'eer0 infor&ation %re%are for )PF*! &a+ al!o be u!e internall+ b+&anage&ent an re!ult in better eci!ion &a(ing b+ &anage&ent" T$ei!clo!ure of infor&ation in )PF*! con!i!tent 'it$ t$e conce%t! ientifie int$e Conce%tual Fra&e'or( an IPSAS! an *P)! erie fro& t$e& 'illen$ance an reinforce %erce%tion! of t$e tran!%arenc+ of financial re%orting

 b+ goern&ent! an ot$er %ublic !ector entitie! an contribute to t$e &oreaccurate %ricing of %ublic !ector ebt" T$erefore0 %ublic !ector entitie! &a+al!o benefit in a nu&ber of 'a+! fro& t$e infor&ation %roie b+ )PF*!"

/"/3 A%%lication of t$e co!t

8/9/2019 IPSAS1

32/598

Fra&e'or("Jualitatie C$aracteri!tic! of Infor&ation Inclue in )eneral Pur%o!eFinancial *e%ort!BC/"1 In eelo%ing IPSAS!0 t$e IPSASB receie! in%ut fro& con!tituent! on0 an&a(e! @ug&ent! about0 infor&ation t$at be!t !ati!fie! t$e ob@ectie! of 

financial re%orting an !$oul be inclue in )PF*!" In &a(ing t$o!e @ug&ent!0 t$e IPSASB con!ier! t$e e2tent to '$ic$ eac$ of t$e ;ualitatiec$aracteri!tic! can be ac$iee" 9i!clo!ure an ot$er re;uire&ent! areinclue in IPSAS! onl+ '$en t$e infor&ation t$at re!ult! fro& t$eir a%%lication i! con!iere to !ati!f+ t$e ;ualitatie c$aracteri!tic! an t$eco!t

8/9/2019 IPSAS1

33/598

i!!ue!" Con!e;uentl+0 '$ile i&%ortant c$aracteri!tic! of )PF*!0 t$e+ are notientifie a! !e%arate iniiual ;ualitatie c$aracteri!tic! in t$eir o'n rig$t"T$e IPSASB i! al!o of t$e ie' t$at t$e notion of regularit+ a! note b+!o&e re!%onent! i! relate to t$e notion of co&%liance a! u!e in t$eConce%tual Fra&e'or(Kt$erefore0 regularit+ i! not ientifie a! an

aitional ;ualitatie c$aracteri!tic"*eleanceBC/"# T$e Conce%tual Fra&e'or( e2%lain! t$at financial an non

8/9/2019 IPSAS1

34/598

to re%re!ent" Fait$ful re%re!entation0 !ub!tance oer for&0 neutralit+0 %ruence an co&%letene!! 'ere ientifie a! co&%onent! of reliabilit+" T$eConce%tual Fra&e'or( u!e! t$e ter& fait$ful re%re!entation rat$er t$anreliabilit+ to e!cribe '$at i! !ub!tantiall+ t$e !a&e conce%t" In aition0 itoe! not e2%licitl+ ientif+ !ub!tance oer for& an %ruence a! co&%onent!

of fait$ful re%re!entation"BC/"11 Man+ re!%onent! to t$e E2%o!ure 9raft !u%%orte t$e u!e of fait$fulre%re!entation an it! e2%lanation in t$e E90 in !o&e ca!e! e2%laining t$atfait$ful re%re!entation i! a better e2%re!!ion of t$e nature of t$e conce%tintene" So&e re!%onent! i not !u%%ort t$e re%lace&ent of reliabilit+'it$ t$e ter& fait$ful re%re!entation0 e2%re!!ing concern! incluing t$atfait$ful re%re!entation i&%lie! t$e ao%tion of fair alue or &ar(et alueaccounting0 an reliabilit+ an fait$ful re%re!entation are not interc$angeableter&!"BC/"1, T$e u!e of t$e ter& fait$ful re%re!entation0 or reliabilit+ for t$at &atter0 toe!cribe t$i! ;ualitatie c$aracteri!tic in t$e Conce%tual Fra&e'or( 'ill not

eter&ine t$e &ea!ure&ent ba!i! to be ao%te in )PF*!0 '$et$er $i!toricalco!t0 &ar(et alue0 fair alue or anot$er &ea!ure&ent ba!i!" T$e IPSASBoe! not inten t$at u!e of fait$ful re%re!entation be inter%rete a! !uc$" T$e&ea!ure&ent ba!i! or &ea!ure&ent ba!e! t$at &a+ be ao%te for t$eele&ent! of financial !tate&ent! are con!iere in a !e%arate C$a%ter of t$eConce%tual Fra&e'or(" T$e ;ualitatie c$aracteri!tic! 'ill t$en o%erate toen!ure t$at t$e financial !tate&ent! fait$full+ re%re!ent t$e &ea!ure&ent

 ba!i! or ba!e! reflecte in )PF*!"BC/"1/ T$e IPSASB a%%reciate! t$e concern of !o&e re!%onent! t$at t$e u!e of aifferent ter& &a+ be inter%rete to reflect ifferent0 an een le!!er0;ualitie! to t$o!e co&&unicate b+ t$e ter& reliabilit+" 8o'eer0 t$eIPSASB i! of t$e ie' t$at e2%lanation in t$e Fra&e'or( t$at Fait$fulre%re!entation i! attaine '$en t$e e%iction of t$e %$eno&enon i! co&%lete0neutral0 an free fro& &aterial error0 an t$e elaboration of t$e!e (e+T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H /feature! 'ill %rotect again!t t$e lo!! of an+ of t$e ;ualitie! t$at 'erefor&erl+ reflecte in t$e u!e of t$e ter& reliabilit+"BC/"1- In aition0 t$e IPSASB $a! been ai!e t$at t$e ter& reliabilit+ i! it!elf 

o%en to ifferent inter%retation! an !ub@ectie @ug&ent!0 'it$con!e;uence! for t$e ;ualit+ of infor&ation inclue in )PF*!" T$eIPSASB i! of t$e ie' t$at u!e of t$e ter& fait$ful re%re!entation 'illoerco&e %roble&! in t$e inter%retation an a%%lication of reliabilit+ t$at$ae been e2%erience in !o&e @uri!iction! 'it$out a le!!ening of t$e;ualitie! intene b+ t$e ter&0 an i! &ore reail+ tran!late into0 anuner!too in0 a 'ie range of language!"Sub!tance oer For& an PruenceBC/"15 So&e re!%onent! to t$e E2%o!ure 9raft e2%re!!e concern t$at !ub!tanceoer for& an %ruence are not ientifie a! ;ualitatie c$aracteri!tic! or t$at t$eir i&%ortance i! not !ufficientl+ recognie or e2%laine" So&e al!o

note t$at %ruence nee not be inco&%atible 'it$ t$e ac$iee&ent of neutralit+ an fait$ful re%re!entation"

8/9/2019 IPSAS1

35/598

BC/"1 T$e Conce%tual Fra&e'or( e2%lain! t$at Infor&ation t$at fait$full+re%re!ent! an econo&ic or ot$er %$eno&enon e%ict! t$e !ub!tance of t$eunerl+ing tran!action0 ot$er eent0 actiit+ or circu&!tanceK'$ic$ i! notnece!!aril+ al'a+! t$e !a&e a! it! legal for&" T$erefore !ub!tance oer for& re&ain! a (e+ ;ualit+ t$at infor&ation inclue in )PF*! &u!t

 %o!!e!!" It i! not ientifie a! a !e%arate or aitional ;ualitatiec$aracteri!tic becau!e it i! alrea+ e&bee in t$e notion of fait$fulre%re!entation"BC/"1# T$e IPSASB i! of t$e ie' t$at t$e notion of %ruence i! al!o reflecte in t$ee2%lanation of neutralit+ a! a co&%onent of fait$ful re%re!entation0 an t$eac(no'lege&ent of t$e nee to e2erci!e caution in ealing 'it$ uncertaint+"T$erefore0 li(e !ub!tance oer for&0 %ruence i! not ientifie a! a !e%arate;ualitatie c$aracteri!tic becau!e it! intent an influence in ientif+inginfor&ation t$at i! inclue in )PF*! i! alrea+ e&bee in t$e notion of fait$ful re%re!entation"Uner!tanabilit+

BC/"16 Alt$oug$ %re!enting infor&ation clearl+ an conci!el+ $el%! u!er! toco&%re$en it0 t$e actual co&%re$en!ion or uner!taning of infor&atione%en! largel+ on t$e u!er! of t$e )PF*!"BC/"13 So&e econo&ic an ot$er %$eno&ena are %articularl+ co&%le2 an ifficultto re%re!ent in )PF*!" 8o'eer0 t$e IPSASB i! of t$e ie' t$at infor&ationt$at i!0 for e2a&%le0 releant0 a fait$ful re%re!entation of '$at it %ur%ort! tore%re!ent0 ti&el+ an erifiable !$oul not be e2clue fro& )PF*! !olel+

 becau!e it &a+ be too co&%le2 or ifficult for !o&e u!er! to uner!tanT8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H -'it$out a!!i!tance" Ac(no'leging t$at it &a+ be nece!!ar+ for !o&e u!er!to !ee( a!!i!tance to uner!tan t$e infor&ation %re!ente in )PF*! oe!not &ean t$at infor&ation inclue in )PF*! nee not be uner!tanable or t$at all effort! !$oul not be unerta(en to %re!ent infor&ation in )PF*! in a&anner t$at i! uner!tanable to a 'ie range of u!er!" 8o'eer0 it oe!reflect t$at0 in %ractice0 t$e nature of t$e infor&ation inclue in )PF*! i!!uc$ t$at all t$e ;ualitatie c$aracteri!tic! &a+ not be full+ ac$ieable at allti&e! for all u!er!"Ti&eline!!

BC/",4 T$e IPSASB recognie! t$e %otential for ti&el+ re%orting to increa!e t$eu!efulne!! of )PF*! for bot$ accountabilit+ an eci!ion

8/9/2019 IPSAS1

36/598

&et$o! for t$e !a&e %$eno&enon i&ini!$e! co&%arabilit+ an0 t$erefore0&a+ be une!irable"BC/",, So&e re!%onent! to t$e E2%o!ure 9raft e2%re!!e concern t$at t$ee2%lanation of t$e relation!$i% bet'een co&%arabilit+ an con!i!tenc+ &a+

 be rea a! %re!enting an ob!tacle to t$e on

8/9/2019 IPSAS1

37/598

infor&ation about !erice elier+ ac$iee&ent! uring t$e re%orting %erioan ;ualitatie an ;uantitatie %ro!%ectie financial an non

8/9/2019 IPSAS1

38/598

financial re%orting an  )PF*! of %ublic !ector entitie! &a+ enco&%a!! $i!torical an

 %ro!%ectie infor&ation about financial %erfor&ance an t$eac$iee&ent of !erice elier+ ob@ectie! oer a nu&ber of re%orting

 %erio!" T$i! %roie! nece!!ar+ in%ut to a!!e!!&ent! of tren! in

!erice elier+ actiitie! an re!ource! co&&itte t$eretoKfor !uc$tren ata0 re%orting on a co&%arable ba!i! &a+ be a! i&%ortant a!0an cannot be !e%arate fro&0 fait$ful re%re!entation of t$einfor&ation"T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H #Con!traint! on Infor&ation Inclue in )eneral Pur%o!e Financial *e%ort!Materialit+BC/",3 At t$e ti&e of i!!ue of t$e E2%o!ure 9raft0 A%%eni2 A of IPSAS 1

e!cribe &aterialit+ 'it$ !i&ilar c$aracteri!tic! to t$at e!cribe in t$eConce%tual Fra&e'or(0 but ientifie &aterialit+ a! a factor to becon!iere in eter&ining onl+ t$e releance of infor&ation" So&ere!%onent! to t$e E2%o!ure 9raft note t$at &aterialit+ &a+ be ientifie a!an a!%ect of releance"BC/"/4 T$e IPSASB $a! con!iere '$et$er &aterialit+ !$oul be ientifie a! anentit+

of t$e a%%lication of a %articular accounting %olic+ or ba!i! of %re%aration or t$e infor&ation content of !e%arate i!clo!ure of certain ite&! of infor&ationare li(el+ to be &aterial !$oul be con!iere in e!tabli!$ing IPSAS! an*P)!" Con!e;uentl+0 t$e IPSASB i! of t$e ie' t$at &aterialit+ i! better reflecte a! a broa con!traint on infor&ation to be inclue in )PF*!"BC/"/, T$e IPSASB con!iere '$et$er t$e Conce%tual Fra&e'or( !$oul reflectt$at legi!lation0 regulation or ot$er aut$orit+ &a+ i&%o!e financial re%ortingre;uire&ent! on %ublic !ector entitie! in aition to t$o!e i&%o!e b+IPSAS!" T$e IPSASB i! of t$e ie' t$at0 '$ile a feature of t$e o%eratingeniron&ent of &an+ %ublic !ector =an &an+ %riate !ector> entitie!0 t$ei&%act t$at legi!lation or ot$er aut$orit+ &a+ $ae on t$e infor&ation

inclue in )PF*! i! not it!elf a financial re%orting conce%t" Con!e;uentl+0it $a! not ientifie it a! !uc$ in t$e Conce%tual Fra&e'or(" Pre%arer! 'ill0

8/9/2019 IPSAS1

39/598

of cour!e0 nee to con!ier !uc$ re;uire&ent! a! t$e+ %re%are )PF*!" In %articular0 legi!lation &a+ %re!cribe t$at %articular ite&! of infor&ation areto be i!clo!e in )PF*! een t$oug$ t$e+ &a+ not be @uge to !ati!f+ a&aterialit+ t$re!$ol =or co!t a! ientifie in t$eConce%tual Fra&e'or(" Si&ilarl+0 t$e i!clo!ure of !o&e &atter! &a+ be

T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H 6

 %ro$ibite b+ legi!lation becau!e0 for e2a&%le0 t$e+ relate to &atter! of national !ecurit+0 not'it$!taning t$at t$e+ are &aterial an 'oul ot$er'i!e!ati!f+ t$e co!t

8/9/2019 IPSAS1

40/598

C8APTE* -: *EPO*TIN) ENTITCONTENTSPageHe+ C$aracteri!tic! of a *e%orting Entit+ """"""""""""""""""""""""""""""""""""""""""""""""" #4?#1Ba!i! for Conclu!ion! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" #,?#-

T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIESCONCEPTUAL F*AMEO*H #4C$a%ter -: *e%orting Entit+-"1 A %ublic !ector re%orting entit+ i! a goern&ent or ot$er %ublic !ector organiation0 %rogra& or ientifiable area of actiit+ =$ereafter referre to a!an entit+ or %ublic !ector entit+> t$at %re%are! )PF*!"-", A %ublic !ector re%orting entit+ &a+ co&%ri!e t'o or &ore !e%arate entitie!t$at %re!ent )PF*! a! if t$e+ are a !ingle entit+.!uc$ a re%orting entit+ i!referre to a! a grou% re%orting entit+"

He+ C$aracteri!tic! of a *e%orting Entit+-"/ He+ c$aracteri!tic! of a %ublic !ector re%orting entit+ are t$at:  It i! an entit+ t$at rai!e! re!ource! fro&0 or on be$alf of0 con!tituent!

anGor u!e! re!ource! to unerta(e actiitie! for t$e benefit of0 or on be$alf of0 t$o!e con!tituent! an

  T$ere are !erice reci%ient! or re!ource %roier! e%enent on )PF*!of t$e entit+ for infor&ation for accountabilit+ or eci!ion

8/9/2019 IPSAS1

41/598

CONCEPTUAL F*AMEO*H #1-"# T$e factor! t$at are li(el+ to !ignal t$e e2i!tence of u!er! of )PF*! of a

 %ublic !ector entit+ or grou% of entitie! inclue an entit+ $aing t$ere!%on!ibilit+ or ca%acit+ to rai!e or e%lo+ re!ource!0 ac;uire or &anage

 %ublic a!!et!0 incur liabilitie!0 or unerta(e actiitie! to ac$iee !erice

elier+ ob@ectie!" T$e greater t$e re!ource! t$at a %ublic !ector entit+ rai!e!0&anage! anGor $a! t$e ca%acit+ to e%lo+0 t$e greater t$e liabilitie! it incur!an t$e greater t$e econo&ic or !ocial i&%act of it! actiitie!0 t$e &ore li(el+it i! t$at t$ere 'ill e2i!t !erice reci%ient! or re!ource %roier! '$o aree%enent on )PF*! for infor&ation about it for accountabilit+ an eci!ion<&a(ing %ur%o!e!" In t$e ab!ence of t$e!e factor!0 or '$ere t$e+ are not!ignificant0 it i! unli(el+ t$at u!er! of )PF*! of t$e!e entitie! 'ill e2i!t"-"6 T$e %re%aration of )PF*! i! not a co!t

8/9/2019 IPSAS1

42/598

Fra&e'or("He+ C$aracteri!tic! of a *e%orting Entit+BC-"1 T$e conce%t of t$e re%orting entit+ i! erie fro& t$e ob@ectie! of financialre%orting b+ %ublic !ector entitie!" T$e ob@ectie! of financial re%orting b+

 %ublic !ector entitie! are to %roie infor&ation about t$e entit+ t$at i! u!eful

to u!er! of )PF*! for accountabilit+ an eci!ion

8/9/2019 IPSAS1

43/598

re%orting entitie!0 incluing goern&ent e%art&ent! an agencie!an international %ublic !ector organiation!"BC-"# T$e Conce%tual Fra&e'or( ac(no'lege! t$at in !o&e ca!e! it &a+ benece!!ar+ to e2erci!e %rofe!!ional @ug&ent in eter&ining '$et$er 

 %articular %ublic !ector entitie! !$oul be ientifie a! a re%orting entit+" In

e2erci!ing t$at @uge&ent0 it !$oul be note t$at0 in certain circu&!tance!0IPSAS! re!%on to u!er!D nee! for infor&ation about %articular %rogra&! or actiitie! unerta(en b+ a goern&ent or ot$er %ublic !ector re%orting entit+

 b+ %roiing for !e%arate i!clo!ure! 'it$in t$e )PF*! of t$at goern&entor ot$er %ublic !ector re%orting entit+/" 7uri!ictional factor! !uc$ a! t$elegi!latie an regulator+ fra&e'or( in %lace an in!titutional ana&ini!tratie arrange&ent! for t$e rai!ing of re!ource! an t$e elier+ of !erice! are al!o li(el+ to infor& eliberation! on '$et$er it i! li(el+ t$at!erice reci%ient! an re!ource %roier! e%enent on )PF*! of %articular 

 %ublic !ector entitie! e2i!t"T$e )rou% *e%orting Entit+

BC-"6 T$e E2%o!ure 9raft outline t$e circu&!tance! t$at 'oul @u!tif+ t$einclu!ion of an entit+ or actiit+ 'it$in a %ublic !ector grou% re%orting entit+"It e2%laine t$at:  A goern&ent or ot$er %ublic !ector entit+ &a+ =a> $ae t$e aut$orit+

an ca%acit+ to irect t$e actiitie! of one or &ore ot$er entitie! !o a!to benefit fro& t$e actiitie! of t$o!e entitie!0 an =b> be e2%o!e to afinancial buren or lo!! t$at &a+ ari!e a! a re!ult of t$e actiitie! of t$o!e entitie! an  To !ati!f+ t$e ob@ectie! of financial re%orting0 )PF*! of a grou%

re%orting entit+ %re%are in re!%ect of a goern&ent or ot$er %ublic!ector entit+ !$oul inclue t$at goern&ent =or ot$er %ublic !ector entit+> an t$e entitie! '$o!e actiitie! it $a! t$e aut$orit+ an/For e2a&%le0 International Public Sector Accounting Stanar! =IPSAS!> !uc$ a! IPSAS 160Seg&ent *e%orting an IPSAS ,,0 9i!clo!ure of Financial Infor&ation about t$e )eneral)oern&ent Sector %roie a &ec$ani!& to !ati!f+ u!er!D nee for infor&ation about

 %articular !eg&ent! or !ector! of an entit+ 'it$out t$eir ientification a! !e%arate re%orting entitie!"T8E CONCEPTUAL F*AMEO*H FO* )ENE*AL PU*POSE FINANCIAL*EPO*TIN) BPUBLIC SECTO* ENTITIES

CONCEPTUAL F*AMEO*H #-ca%acit+ to irect0 '$en t$e re!ult! of !uc$ irection can =a> generatefinancial or ot$er benefit! for t$e goern&ent =or ot$er %ublic !ector entit+>0 or =b> e2%o!e it to a financial buren or lo!!"BC-"3 Man+ re!%onent! to t$e E2%o!ure 9raft note t$eir agree&ent 'it$ t$eIPSASBD! ie' of t$e criteria t$at !$oul be !ati!fie for inclu!ion in a

 %ublic !ector grou% re%orting entit+" 8o'eer0 ot$er re!%onent! e2%re!!et$eir concern about t$e %otential inter%retation an a%%lication of t$e criteriain %articular circu&!tance!" In !o&e ca!e!0 t$e+ note t$at t$e Fra&e'or( 'oul nee to %roie aitional a%%lication guiance if it 'a! to beeffectie in ealing 'it$ circu&!tance! not ealt 'it$ in IPSAS!" A nu&ber 

of re!%onent! al!o e2%re!!e t$e ie' t$at t$e criteria to be !ati!fie for inclu!ion in a grou% re%orting entit+ 'ere &ore a%%ro%riatel+ are!!e an

8/9/2019 IPSAS1

44/598

re!ole at t$e !tanar! leel0 '$ere t$o!e criteria an t$eir con!e;uence!coul be te!te acro!! a range of circu&!tance!0 an !u%%orte 'it$ !%ecifice2a&%le! of t$e circu&!tance! li(el+ to e2i!t in &an+ @uri!iction!"BC-"14 T$e IPSASB foun t$e!e concern! %er!ua!ie" It $a! recon!tructe anra'n toget$er it! i!cu!!ion of t$e re%orting entit+ an grou% re%orting

entit+ to focu! on t$e %rinci%le! unerl+ing t$e ientification of a %ublic!ector re%orting entit+.'$et$er t$at re%orting entit+ co&%ri!e! a !ingle %ublic !ector entit+ or a grou% of entitie!" T$e ientification of t$e criteria to be !ati!fie for inclu!ion in a grou% re%orting entit+ con!i!tent 'it$ t$e!e %rinci%le! 'ill t$en be eelo%e an full+ e2%lore at t$e !tanar! leel"IPSAS 1 #5IPSAS 1IPSAS 1.P*ESENTATION OF FINANCIAL STATEMENTSAc(no'leg&entT$i! International Public Sector Accounting Stanar =IPSAS> i! ra'n %ri&aril+fro& International Accounting Stanar =IAS> 1 =*ei!e ,44/>0 Pre!entation of 

Financial State&ent!0 %ubli!$e b+ t$e International Accounting Stanar! Boar=IASB>" E2tract! fro& IAS 1 are re%rouce in t$i! %ublication of t$e InternationalPublic Sector Accounting Stanar! Boar =IPSASB> of t$e InternationalFeeration of Accountant! =IFAC> 'it$ t$e %er&i!!ion of t$e InternationalFinancial *e%orting Stanar! =IF*S> Founation"T$e a%%roe te2t of t$e International Financial *e%orting Stanar! =IF*S!> i!t$at %ubli!$e b+ t$e IASB in t$e Engli!$ language0 an co%ie! &a+ be obtaineirectl+ fro& IF*S Publication! 9e%art&ent0 Fir!t Floor0 /4 Cannon Street0Lonon EC-M 80 Unite Hingo&"E

8/9/2019 IPSAS1

45/598

Introuction !ection 9elete I&%roe&ent! to IPSAS!October ,411#A Ne' IPSAS ,6 7anuar+ ,414#5 A&ene IPSAS /4 7anuar+ ,414#3 A&ene IPSAS ,3 7anuar+ ,414

I&%roe&ent! to IPSAS!7anuar+ ,41464 A&ene I&%roe&ent! to IPSAS!

 Noe&ber ,4146, A&ene IPSAS ,3 7anuar+ ,414I&%roe&ent! to IPSAS!7anuar+ ,414I&%roe&ent! to IPSAS!

 Noe&ber ,41435A Ne' IPSAS ,6 7anuar+ ,414P*ESENTATION OF FINANCIAL STATEMENTS

IPSAS 1 ##IPSAS 1Paragra%$ Affecte 8o' Affecte Affecte B+141 A&ene IPSAS ,3 7anuar+ ,4141,3 A&ene IPSAS /4 7anuar+ ,4141-6 A&ene IPSAS /4 7anuar+ ,4141-6A Ne' IPSAS /4 7anuar+ ,4141-6B Ne' IPSAS /4 7anuar+ ,4141-6C Ne' IPSAS /4 7anuar+ ,4141-69 Ne' IPSAS ,6 7anuar+ ,414154 A&ene IPSAS ,6 7anuar+ ,41415/A Ne' I&%roe&ent! to IPSAS!7anuar+ ,41415/B Ne' IPSAS ,6 7anuar+ ,41415/C Ne' IPSAS /4 7anuar+ ,41415/9 Ne' I&%roe&ent! to IPSAS!

 Noe&ber ,414IPSAS 1 #69ece&ber ,44IPSAS 1.P*ESENTATION OFFINANCIAL STATEMENTS

CONTENTSParagra%$Ob@ectie """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 1Sco%e """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,?9efinition! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" #?1-Econo&ic Entit+ """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 6?14Future Econo&ic Benefit! or Serice Potential """"""""""""""""""""""""""""""" 11)oern&ent Bu!ine!! Enter%ri!e! """""""""""""""""""""""""""""""""""""""""""""""""" 1,Materialit+ """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 1/

 Net A!!et!GE;uit+ """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 1-Pur%o!e of Financial State&ent! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""" 15?16

*e!%on!ibilit+ for Financial State&ent! """""""""""""""""""""""""""""""""""""""""""""""" 13?,4Co&%onent! of Financial State&ent! """""""""""""""""""""""""""""""""""""""""""""""""""" ,1?,

8/9/2019 IPSAS1

46/598

Oerall Con!ieration! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ,#?56Fair Pre!entation an Co&%liance 'it$ IPSAS! """"""""""""""""""""""""""""" ,#?/#)oing Concern """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" /6?-1Con!i!tenc+ of Pre!entation """"""""""""""""""""""""""""""""""""""""""""""""""""""""""" -,?--Materialit+ an Aggregation """""""""""""""""""""""""""""""""""""""""""""""""""""""""" -5?-#

Off!etting """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" -6?5,Co&%aratie Infor&ation """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 5/?56Structure an Content """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 53?154Introuction """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 53?4Ientification of t$e Financial State&ent! """""""""""""""""""""""""""""""""""""" 1?5*e%orting Perio """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ?6Ti&eline!! """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 3State&ent of Financial Po!ition """"""""""""""""""""""""""""""""""""""""""""""""""""" #4?36P*ESENTATION OF FINANCIAL STATEMENTSIPSAS 1 #3IPSAS 1

CurrentGNon """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 155A%%eni2 A: Jualitatie C$aracteri!tic! of Financial *e%ortingA%%eni2 B: A&en&ent! to Ot$er IPSAS!Ba!i! for Conclu!ion!I&%le&entation )uianceCo&%ari!on 'it$ IAS 1P*ESENTATION OF FINANCIAL STATEMENTSIPSAS 1 64

International Public Sector Accounting Stanar 10 Pre!entation of FinancialState&ent!0 i! !et out in %aragra%$! 1155" All t$e %aragra%$! $ae e;ual aut$orit+"

8/9/2019 IPSAS1

47/598

IPSAS 1 !$oul be rea in t$e conte2t of it! ob@ectie0 t$e Ba!i! for Conclu!ion!0an t$e Preface to International Public Sector Accounting Stanar!" IPSAS /0Accounting Policie!0 C$ange! in Accounting E!ti&ate! an Error!0 %roie! a

 ba!i! for !electing an a%%l+ing accounting %olicie! in t$e ab!ence of e2%licitguiance"

P*ESENTATION OF FINANCIAL STATEMENTSIPSAS 1 61IPSAS 1Ob@ectie1" T$e ob@ectie of t$i! Stanar i! to %re!cribe t$e &anner in '$ic$ general

 %ur%o!e financial !tate&ent! !$oul be %re!ente to en!ure co&%arabilit+ bot$ 'it$ t$e entit+D! financial !tate&ent! of %reiou! %erio! an 'it$t$e financial !tate&ent! of ot$er entitie!" To ac$iee t$i! ob@ectie0 t$i!Stanar !et! out oerall con!ieration! for t$e %re!entation of financial!tate&ent!0 guiance for t$eir !tructure0 an &ini&u& re;uire&ent! for t$e content of financial !tate&ent! %re%are uner t$e accrual ba!i! of 

accounting" T$e recognition0 &ea!ure&ent0 an i!clo!ure of !%ecifictran!action! an ot$er eent! are ealt 'it$ in ot$er IPSAS!"Sco%e," T$i! Stanar !$all be a%%lie to all general %ur%o!e financial!tate&ent! %re%are an %re!ente uner t$e accrual ba!i! of accounting in accorance 'it$ IPSAS!"/" )eneral %ur%o!e financial !tate&ent! are t$o!e intene to &eet t$e nee!of u!er! '$o are not in a %o!ition to e&an re%ort! tailore to &eet t$eir 

 %articular infor&ation nee!" U!er! of general %ur%o!e financial!tate&ent! inclue ta2%a+er! an rate%a+er!0 &e&ber! of t$e legi!lature0creitor!0 !u%%lier!0 t$e &eia0 an e&%lo+ee!" )eneral %ur%o!e financial!tate&ent! inclue t$o!e t$at are %re!ente !e%aratel+ or 'it$in anot$er 

 %ublic ocu&ent0 !uc$ a! an annual re%ort" T$i! Stanar oe! not a%%l+to conen!e interi& financial infor&ation"-" T$i! Stanar a%%lie! e;uall+ to all entitie! an '$et$er or not t$e+ neeto %re%are con!oliate financial !tate&ent! or !e%arate financial!tate&ent!0 a! efine in IPSAS 0 Con!oliate an Se%arate FinancialState&ent!"5" T$i! Stanar a%%lie! to all %ublic !ector entitie! ot$er t$an)oern&ent Bu!ine!! Enter%ri!e!"" T$e Preface to International Public Sector Accounting Stanar! i!!ue

 b+ t$e IPSASB e2%lain! t$at )oern&ent Bu!ine!! Enter%ri!e! =)BE!>a%%l+ IF*S! i!!ue b+ t$e IASB" )BE! are efine in %aragra%$ # belo'"9efinition!#" T$e follo'ing ter&! are u!e in t$i! Stanar 'it$ t$e &eaning!!%ecifie:Accrual ba!i! &ean! a ba!i! of accounting uner '$ic$ tran!action!an ot$er eent! are recognie '$en t$e+ occur =an not onl+ '$enca!$ or it! e;uialent i! receie or %ai>" T$erefore0 t$e tran!action!an eent! are recore in t$e accounting recor! an recognie int$e financial !tate&ent! of t$e %erio! to '$ic$ t$e+ relate" T$eP*ESENTATION OF FINANCIAL STATEMENTS

IPSAS 1 6,ele&ent! recognie uner accrual accounting are a!!et!0 liabilitie!0

8/9/2019 IPSAS1

48/598

net a!!et!Ge;uit+0 reenue0 an e2%en!e!"A!!et! are re!ource! controlle b+ an entit+ a! a re!ult of %a!t eent!an fro& '$ic$ future econo&ic benefit! or !erice %otential aree2%ecte to flo' to t$e entit+"Contribution! fro& o'ner! &ean! future econo&ic benefit! or 

!erice %otential t$at $a! been contribute to t$e entit+ b+ %artie!e2ternal to t$e entit+0 ot$er t$an t$o!e t$at re!ult in liabilitie! of t$eentit+0 t$at e!tabli!$ a financial intere!t in t$e net a!!et!Ge;uit+ of t$eentit+0 '$ic$:=a> Cone+! entitle&ent bot$ to =i> i!tribution! of futureecono&ic benefit! or !erice %otential b+ t$e entit+ uring it!life0 !uc$ i!tribution! being at t$e i!cretion of t$e o'ner! or t$eir re%re!entatie!0 an to =ii> i!tribution! of an+ e2ce!! of a!!et! oer liabilitie! in t$e eent of t$e entit+ being 'oun u%anGor =b> Can be !ol0 e2c$ange0 tran!ferre0 or reee&e"

9i!tribution! to o'ner! &ean! future econo&ic benefit! or !erice %otential i!tribute b+ t$e entit+ to all or !o&e of it! o'ner!0 eit$er a! a return on ine!t&ent or a! a return of ine!t&ent"Econo&ic entit+ &ean! a grou% of entitie! co&%ri!ing a controllingentit+ an one or &ore controlle entitie!"E2%en!e! are ecrea!e! in econo&ic benefit! or !erice %otentialuring t$e re%orting %erio in t$e for& of outflo'! or con!u&%tionof a!!et! or incurrence! of liabilitie! t$at re!ult in ecrea!e! in neta!!et!Ge;uit+0 ot$er t$an t$o!e relating to i!tribution! to o'ner!")oern&ent Bu!ine!! Enter%ri!e &ean! an entit+ t$at $a! all t$efollo'ing c$aracteri!tic!:=a> I! an entit+ 'it$ t$e %o'er to contract in it! o'n na&e=b> 8a! been a!!igne t$e financial an o%erational aut$orit+ tocarr+ on a bu!ine!!=c> Sell! goo! an !erice!0 in t$e nor&al cour!e of it! bu!ine!!0 toot$er entitie! at a %rofit or full co!t recoer+=> I! not reliant on continuing goern&ent funing to be a goingconcern =ot$er t$an %urc$a!e! of out%ut! at ar&D! lengt$> an=e> I! controlle b+ a %ublic !ector entit+"I&%racticable A%%l+ing a re;uire&ent i! i&%racticable '$en t$eentit+ cannot a%%l+ it after &a(ing eer+ rea!onable effort to o !o"

P*ESENTATION OF FINANCIAL STATEMENTSIPSAS 1 6/IPSAS 1Liabilitie! are %re!ent obligation! of t$e entit+ ari!ing fro& %a!teent!0 t$e !ettle&ent of '$ic$ i! e2%ecte to re!ult in an outflo'fro& t$e entit+ of re!ource! e&bo+ing econo&ic benefit! or !erice %otential"Material O&i!!ion! or &i!!tate&ent! of ite&! are &aterial if t$e+coul0 iniiuall+ or collectiel+0 influence t$e eci!ion! or a!!e!!&ent! of u!er! &ae on t$e ba!i! of t$e financial !tate&ent!"Materialit+ e%en! on t$e nature an !ie of t$e o&i!!ion or 

&i!!tate&ent @uge in t$e !urrouning circu&!tance!" T$e natureor !ie of t$e ite&0 or a co&bination of bot$0 coul be t$e

8/9/2019 IPSAS1

49/598

eter&ining factor" Net a!!et!Ge;uit+ i! t$e re!iual intere!t in t$e a!!et! of t$e entit+after eucting all it! liabilitie!"

 Note! contain infor&ation in aition to t$at %re!ente in t$e!tate&ent of financial %o!ition0 !tate&ent of financial %erfor&ance0

!tate&ent of c$ange! in net a!!et!Ge;uit+ an ca!$ flo' !tate&ent" Note! %roie narratie e!cri%tion! or i!aggregation! of ite&!i!clo!e in t$o!e !tate&ent! an infor&ation about ite&! t$at onot ;ualif+ for recognition in t$o!e !tate&ent!"*eenue i! t$e gro!! inflo' of econo&ic benefit! or !erice

 %otential uring t$e re%orting %erio '$en t$o!e inflo'! re!ult inan increa!e in net a!!et!Ge;uit+0 ot$er t$an increa!e! relating tocontribution! fro& o'ner!"Ter&! efine in ot$er IPSAS! are u!e in t$i! Stanar 'it$ t$e!a&e &eaning a! in t$o!e Stanar!0 an are re%rouce in t$e)lo!!ar+ of 9efine Ter&! %ubli!$e !e%aratel+"

#A" T$e follo'ing ter&! are e!cribe in IPSAS ,60 Financial In!tru&ent!:Pre!entation an are u!e in t$i! Stanar 'it$ t$e &eaning !%ecifiein IPSAS ,6:=a> Puttable financial in!tru&ent cla!!ifie a! an e;uit+ in!tru&ent=e!cribe in %aragra%$! 15 an 1 of IPSAS ,6>=b> An in!tru&ent t$at i&%o!e! on t$e entit+ an obligation to elier to anot$er %art+ a %ro rata !$are of t$e net a!!et! of t$e entit+ onl+on li;uiation an i! cla!!ifie a! an e;uit+ in!tru&ent =e!cribein %aragra%$! 1# an 16 of IPSAS ,6>"Econo&ic Entit+6" T$e ter& econo&ic entit+ i! u!e in t$i! Stanar to efine0 for financialre%orting %ur%o!e!0 a grou% of entitie! co&%ri!ing t$e controlling entit+an an+ controlle entitie!"P*ESENTATION OF FINANCIAL STATEMENTSIPSAS 1 6-3" Ot$er ter&! !o&eti&e! u!e to refer to an econo&ic entit+ incluea&ini!tratie entit+0 financial entit+0 con!oliate entit+0 an grou%"14" An econo&ic entit+ &a+ inclue entitie! 'it$ bot$ !ocial %olic+ anco&&ercial ob@ectie!" For e2a&%le0 a goern&ent $ou!ing e%art&ent&a+ be an econo&ic entit+ t$at inclue! entitie! t$at %roie $ou!ing for a no&inal c$arge0 a! 'ell a! entitie! t$at %roie acco&&oation on a

co&&ercial ba!i!"Future Econo&ic Benefit! or Serice Potential11" A!!et! %roie a &ean! for entitie! to ac$iee t$eir ob@ectie!" A!!et! t$atare u!e to elier goo! an !erice! in accorance 'it$ an entit+D!ob@ectie!0 but '$ic$ o not irectl+ generate net ca!$ inflo'!0 are oftene!cribe a! e&bo+ing !erice %otential" A!!et! t$at are u!e to generatenet ca!$ inflo'! are often e!cribe a! e&bo+ing future econo&ic

 benefit!" To enco&%a!! all t$e %ur%o!e! to '$ic$ a!!et! &a+ be %ut0 t$i!Stanar u!e! t$e ter& future econo&ic benefit! or !erice %otential toe!cribe t$e e!!ential c$aracteri!tic of a!!et!")oern&ent Bu!ine!! Enter%ri!e!

1," )BE! inclue bot$ traing enter%ri!e!0 !uc$ a! utilitie!0 an financialenter%ri!e!0 !uc$ a! financial in!titution!" )BE! are0 in !ub!tance0 no

8/9/2019 IPSAS1

50/598

ifferent fro& entitie! conucting !i&ilar actiitie! in t$e %riate !ector")BE! generall+ o%erate to &a(e a %rofit0 alt$oug$ !o&e &a+ $aeli&ite co&&unit+ !erice obligation! uner '$ic$ t$e+ are re;uire to

 %roie !o&e iniiual! an organiation! in t$e co&&unit+ 'it$ goo!an !erice! at eit$er no c$arge or a !ignificantl+ reuce c$arge"

IPSAS %roie! guiance on eter&ining '$et$er control e2i!t! for financial re%orting %ur%o!e!0 an !$oul be referre to in eter&ining'$et$er a )BE i! controlle b+ anot$er %ublic !ector entit+"Materialit+1/" A!!e!!ing '$et$er an o&i!!ion or &i!!tate&ent coul influence eci!ion!of u!er!0 an !o be &aterial0 re;uire! con!ieration of t$e c$aracteri!tic!of t$o!e u!er!" U!er! are a!!u&e to $ae a rea!onable (no'lege of t$e

 %ublic !ector an econo&ic actiitie! an accounting0 an a 'illingne!! to!tu+ t$e infor&ation 'it$ rea!onable iligence" T$erefore0 t$ea!!e!!&ent nee! to ta(e into account $o' u!er! 'it$ !uc$ attribute!coul rea!onabl+ be e2%ecte to be influence in &a(ing an ealuating

eci!ion!"P*ESENTATION OF FINANCIAL STATEMENTSIPSAS 1 65IPSAS 1

 Net A!!et!GE;uit+1-" Net a!!et!Ge;uit+ i! t$e ter& u!e in t$i! Stanar to refer to t$e re!iual&ea!ure in t$e !tate&ent of financial %o!ition =a!!et! le!! liabilitie!>" Neta!!et!Ge;uit+ &a+ be %o!itie or negatie" Ot$er ter&! &a+ be u!e in

 %lace of net a!!et!Ge;uit+0 %roie t$at t$eir &eaning i! clear"Pur%o!e of Financial State&ent!15" Financial !tate&ent! are a !tructure re%re!entation of t$e financial

 %o!ition an financial %erfor&ance of an entit+" T$e ob@ectie! of general %ur%o!e financial !tate&ent! are to %roie infor&ation about t$efinancial %o!ition0 financial %erfor&ance0 an ca!$ flo'! of an entit+ t$ati! u!eful to a 'ie range of u!er! in &a(ing an ealuating eci!ion!about t$e allocation of re!ource!" S%ecificall+0 t$e ob@ectie! of general

 %ur%o!e financial re%orting in t$e %ublic !ector !$oul be to %roieinfor&ation u!eful for eci!ion &a(ing0 an to e&on!trate t$eaccountabilit+ of t$e entit+ for t$e re!ource! entru!te to it0 b+:=a> Proiing infor&ation about t$e !ource!0 allocation0 an u!e! of financial re!ource!

=b> Proiing infor&ation about $o' t$e entit+ finance it! actiitie!an &et it! ca!$ re;uire&ent!=c> Proiing infor&ation t$at i! u!eful in ealuating t$e entit+D!abilit+ to finance it! actiitie! an to &eet it! liabilitie! anco&&it&ent!=> Proiing infor&ation about t$e financial conition of t$e entit+an c$ange! in it an=e> Proiing aggregate infor&ation u!eful in ealuating t$e entit+D!

 %erfor&ance in ter&! of !erice co!t!0 efficienc+0 anacco&%li!$&ent!"1" )eneral %ur%o!e financial !tate&ent! can al!o $ae a %reictie or 

 %ro!%ectie role0 %roiing infor&ation u!eful in %reicting t$e leel of re!ource! re;uire for continue o%eration!0 t$e re!ource! t$at &a+ be

8/9/2019 IPSAS1

51/598

generate b+ continue o%eration!0 an t$e a!!ociate ri!(! anuncertaintie!" Financial re%orting &a+ al!o %roie u!er! 'it$infor&ation:=a> Inicating '$et$er re!ource! 'ere obtaine an u!e inaccorance 'it$ t$e legall+ ao%te buget an

=b> Inicating '$et$er re!ource! 'ere obtaine an u!e inaccorance 'it$ legal an contractual re;uire&ent!0 incluingfinancial li&it! e!tabli!$e b+ a%%ro%riate legi!latie aut$oritie!"P*ESENTATION OF FINANCIAL STATEMENTSIPSAS 1 61#" To &eet t$e!e ob@ectie!0 t$e financial !tate&ent! %roie infor&ationabout an entit+D!:=a> A!!et!=b> Liabilitie!=c> Net a!!et!Ge;uit+=> *eenue

=e> E2%en!e!=f> Ot$er c$ange! in net a!!et!Ge;uit+ an=g> Ca!$ flo'!"16" Alt$oug$ t$e infor&ation containe in financial !tate&ent! can bereleant for t$e %ur%o!e of &eeting t$e ob@ectie! in %aragra%$ 150 it i!unli(el+ to enable all t$e!e ob@ectie! to be &et" T$i! i! li(el+ to be

 %articularl+ !o in re!%ect of entitie! '$o!e %ri&ar+ ob@ectie &a+ not beto &a(e a %rofit0 a! &anager! are li(el+ to be accountable for t$eac$iee&ent of !erice elier+ a! 'ell a! financial ob@ectie!"Su%%le&entar+ infor&ation0 incluing noninclue t$e iniiual '$o $ea! t$e entit+ =t$e %er&anent $ea or c$ief 

e2ecutie> an t$e $ea of t$e central finance agenc+ =or t$e !enior finance official0 !uc$ a! t$e controller or accountant",4" T$e re!%on!ibilit+ for t$e %re%aration of t$e con!oliate financial!tate&ent! of t$e goern&ent a! a '$ole u!uall+ re!t! @ointl+ 'it$ t$e$ea of t$e central finance agenc+ =or t$e !enior finance official0 !uc$ a!t$e controller or accountant an t$e finance &ini!ter =or e;uialent>"Co&%onent! of Financial State&ent!,1" A co&%lete !et of financial !tate&ent! co&%ri!e!:=a> A !tate&ent of financial %o!itionP*ESENTATION OF FINANCIAL STATEMENTS

IPSAS 1 6#IPSAS 1

8/9/2019 IPSAS1

52/598

=b> A !tate&ent of financial %erfor&ance=c> A !tate&ent of c$ange! in net a!!et!Ge;uit+=> A ca!$ flo' !tate&ent=e> $en t$e entit+ &a(e! %ublicl+ aailable it! a%%roe buget0a co&%ari!on of buget an actual a&ount! eit$er a! a

!e%arate aitional financial !tate&ent or a! a buget colu&nin t$e financial !tate&ent! an=f> Note!0 co&%ri!ing a !u&&ar+ of !ignificant accounting %olicie!an ot$er e2%lanator+ note!",," T$e co&%onent! li!te in %aragra%$ ,1 are referre to b+ a ariet+ of na&e! bot$ 'it$in an acro!! @uri!iction!" T$e !tate&ent of financial

 %o!ition &a+ al!o be referre to a! a balance !$eet or !tate&ent of a!!et!an liabilitie!" T$e !tate&ent of financial %erfor&ance &a+ al!o bereferre to a! a !tate&ent of reenue! an e2%en!e!0 an inco&e !tate&ent0an o%erating !tate&ent0 or a %rofit an lo!! !tate&ent" T$e note! &a+inclue ite&! referre to a! !c$eule! in !o&e @uri!iction!"

,/" T$e financial !tate&ent! %roie u!er! 'it$ infor&ation about an entit+D!re!ource! an obligation! at t$e re%orting ate an t$e flo' of re!ource!

 bet'een re%orting ate!" T$i! infor&ation i! u!eful for u!er! &a(inga!!e!!&ent! of an entit+D! abilit+ to continue to %roie goo! an!erice! at a gien leel0 an t$e leel of re!ource! t$at &a+ nee to be

 %roie to t$e entit+ in t$e future !o t$at it can continue to &eet it!!erice elier+ obligation!",-" Public !ector entitie! are t+%icall+ !ub@ect to bugetar+ li&it! in t$e for&of a%%ro%riation! or buget aut$oriation! =or e;uialent>0 '$ic$ &a+ begien effect t$roug$ aut$oriing legi!lation" )eneral %ur%o!e financialre%orting b+ %ublic !ector entitie! &a+ %roie infor&ation on '$et$er re!ource! 'ere obtaine an u!e