Strengthening Public Sector Accounting

Strengthening Public Sector Accounting The global trend in fiscal government transparency and movement to International Public Sector Standards (IPSAS) Course Overview The global financial crisis and associated financial safeguards implemented across all business sectors have seen even greater pressures exerted on public budgets with governments and public sector entities encountering growing pressure to provide high-quality, transparent financial statements, clear and decisive financial management approaches and enhanced operational allocation and performance measures related to public funds. IPSAS (International Public Sector Accounting Standards) provides a sounds basis for public entities to demonstrate sound accrual accounting and budgeting techniques. With its emphasis on performance-based management as a core competency, it requires entities to adopt a fresh and innovative approach to developing new skill sets. This course offers a comprehensive understanding of the essential elements of IPSAS. It begins by building on the foundations laid by the IASB’s mainstream IFRS standards and then looks at these concepts within the framework of the public entity established by IFAC and the IPSASB. The course develops key skills competencies through the application of sound theoretical content within a practical, real-life inspired case-study based environment. Attend this comprehensive 5–day training course and in order to: Understand the Global Trends for public sector accountability and reporting Gain practical knowledge of the Transition Challenges and approaches in moving to Internationally accepted reporting norms such as IPSAS Apply IPSAS standards to ensure Improved Accountability Achieve Greater Transparency within your entity Achieve Greater Harmony within the entity’s reporting and financial statements as a way to encourage and enhance organisational goal congruence Plus: Practical case studies and exercises for participants to gain a working knowledge of how to apply and implement both cash and accrual based IPSAS and the challenges entities face in adopting IPSAS and how those challenges are overcome. Who should attend This course has been specifically designed for the benefit of: Organisations seeking improved credibility in the international arena with improving fiscal transparency and accountability Governments and public sector entities that are currently implementing or considering implementing IPSAS as a basis for accounting Organisations wishing to gain an overview of IPSAS and understand what implications adopting these standards may have on their organisation Financial professionals operating within the finance departments of public entities
Day 1 IPSAS – Overview and Context Summary of current events in the area of public sector accountability and reporting What IFAC and the IPSASB is all about Review of financial statements in the public domain for entities that have transition to either IPSAS Cash or IPSAS Accrual based accounting Discussion on the current status of the global adoption of IPSAS cash and accrual based standards – countries that have adopted and countries in the process of adoption Challenges of how to achieve a successful transition to improve financial reporting under a framework such as IPSAS Summary of recent pronouncements Conceptual framework for general purpose financial reporting by public sector entities Expected future developments IPSASB projects Consultation papers Projects in process Resources and reference material on IPSAS Research papers Public sector studies Case study: Recent developments and changes to IPSAS Group discussion: Current problem areas and potential upcoming changes Day 2 Reporting in a transparent matter – core principles and concepts Presentation of Financial Statements (IPSS 1 / IAS 1) Required financial statements Structure Content Cash Flow Statements (IPSAS 2/ IAS7) Cash and cash equivalents Operating, investing and financing activities Accounting Policies, Changes in Accounting Estimates and Errors (IPSAS 3 / IAS 8) Changes in accounting estimates Changes in accounting policies Correction of errors Items requiring separate financial statement disclosure The Effect of Changes in Foreign Exchange Rates (IPSAS 4 / IAS 21) Foreign currency transactions Foreign operations Consolidated and Separate Financial Statements (IPSAS 6) Concepts of public sector control Consolidation requirements Determining whether control exists Case study: Outlining the IPSAS specific implications of selected standards Day 3 IPSAS - An in-depth look at key standards Events after the Reporting Date (IPSAS 14/IAS 10) Adjusting events Non-adjusting events Segment Reporting (IPSAS 18/IFRS 8) Distinguishable activities Related Party Disclosures (IPSAS 20/IAS 24) Identification of related parties Disclosure requirements Disclosure of Financial Information about the General Government Sector (IPSAS 22) Disclosure requirements Presentation of Budget Information in Financial Statements (IPSAS 24) Required disclosures Comparison of budget and actual amounts Material differences; Assets and liabilities Investments in Associates (IPSAS 7 /IAS 28) Equity method of accounting Cost method requirements Interests in Joint Ventures (IPSAS 8/ IAS 31) Proportionate consolidation Allowed alternative equity method Course benefits Understand IPSAS requirements, including accounting policies and disclosures Implement the IPSAS recognition, measurement and disclosure rules for assets, liabilities, revenues and expenses Apply recent and revised standards Case study: Outlining the IPSAS specific implications of selected standards Day 4 IPSAS – The Fundamental Building Blocks Property, Plant and Equipment (IPSAS 17/IAS 16) Initial recognition Subsequent valuation Depreciation Treatment of heritage assets Borrowing Costs (IPSAS 5/IAS 23) Expensing Capitalisation Leases (IPSAS 13/ IAS 17) Lessee and lessor financial reporting requirements Sale and leaseback transactions IPSAS 16, Investment Property (IPSAS 16/ IAS 40) Initial recognition Subsequent valuation Transitional provisions for initial adoption Inventories (IPSAS 12/IAS 2) Public sector entity inventories Inventories held for sale Inventories held for distribution at no or nominal charge Impairment of Non-Cash-Generating Assets (IPSAS 21) Impairment identification Recognition and measurement Impairment reversals Disclosure requirements Financial Instruments: Disclosure and Presentation (IPSAS 15/IFRS 9) On-balance sheet instruments Off-balance sheet instruments Financial assets, liabilities or equity classification Provisions, Contingent Liabilities and Contingent Assets (IPSAS 19/IAS 37) Definitions Recognition and measurement Disclosures Case study: Outlining the IPSAS specific implications of selected standards Day 5 IPSAS – Essential technical components and the way ahead! Employee Benefits (IPSAS 25/ IAS 19) Definitions Short-term employee benefits Postemployment benefits Distinction between defined contribution plans and defined benefit plans Recognition and measurement of plan assets Termination benefits Presentation and disclosure Impairment of Cash-Generating Assets (IPSAS 26) Definitions Identifying an asset that may be Impaired Measuring recoverable amount Recognizing and measuring an impairment loss of an individual asset Cash-generating units Reversing an impairment loss Redesignation of assets Disclosure Income statement issues Revenue from Exchange Transactions (IPSAS 9) Accounting treatment for exchange transactions Revenue from Non-Exchange Transactions (Taxes and Transfers) (IPSAS 23) Recognition and measurement of tax revenue Recognition of revenue from transfers Reflecting conditions and restrictions in the financial statements Construction Contracts (IPSAS 11/ IAS 11) Commercial and non-commercial contracts Allocation of contract costs Contract revenue recognition Associates and joint ventures IPSAS – The Way Ahead Understanding of the differences between IAS/ IFRS and IPSAS Planning opportunities through awareness of likely future IPSAS changes Sources of IPSAS guidance that are available Case study: Outlining the IPSAS specific implications of selected standards Wrap up and conclusion