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Regional Challenges and Key Success Factors to Implementation of IPSAS

Prof. Dr. Andreas Bergmann

Chair IPSAS Board

CReCER 2012

Managua, Nicaragua

29 October 2012 (by-invitation-only event)

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Government accounting and budgeting is relevant

Credit Ratings (S&P) – Latin America bias? Reputation?

Transparency and Accountability

Country LAC

Rating(foreign currency)

Govt Debt in % of GDP (IMF, 2012)

Country Europe

Rating (foreign currency)

Govt Debt in % of GDP (IMF, 2012)

Brazil BBB 66% Netherlands AAA 66%

Chile A+ 10% Estonia AA- 6%

Colombia BBB- 35% Switzerland AAA 38%

Panama BBB 38% Slovakia A 44%

Peru BBB 22% Luxemburg AAA 20%

Uruguay BBB- 54% Poland A- 55%

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Accrual accounting is generally accepted

• After 20+ years of reform– About 70 countries are on accrual accounting, thereof about

50 on IPSAS basis or heading there– In some additional countries sub-national levels are on

accrual accounting even if national level is still on cash– None of the reforms have been reverted– Accrual accounting provides cash information (in the cash

flow statement)– Broad consensus: Accrual accounting enhances

transparency and improves decision making – especially in respect of investments (e.g. infrastructure) and liabilities (e.g. the non-government-bond types)

Transparency and Accountability

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Need for an integrated system

Budgeting Accounting AuditGovernmental

Financial Statistics

Transparency and Accountability

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Why, when and how

• Why? Improve accountability and decision making• When? Now – why wait …• How? As part of an integrated reform!

Transparency and Accountability