Chartered Institute of Public Finance and Accountancy

IPSASB Work on International Public Sector Conceptual Framework

On 30 September 2008, the IPSASB issued its first consultation paper on the development of a conceptual framework for public sector financial reporting. This was the first of a series of consultations planned to support the production of an exposure draft of a complete framework by 2011. Cash Basis IPSASs will be subject to separate review outside this process.

While International Public Sector Accounting Standards (IPSASs) are not used in the United Kingdom, they are increasingly being adopted internationally, and also represent a very useful benchmark for the interpretation of International Financial Reporting Standards (IFRS) in a public sector context. They have informed the deliberations of the Financial Reporting Advisory Board (FRAB) during its review of the developing IFRS based Government Financial Reporting Manual. Under a memorandum of understanding agreed in October 2008 IPSASs are now formally second in the hierarchy for the development of all financial reporting guidance for the public sector, encompassing government departments and their arms length bodies, NHS trusts, foundation trusts, and local government.

CIPFA and 10 other UK stakeholders sent a joint response to the first paper, which was developed on the basis of UK consultation material.