INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS (IPSAS)
The Controller and Accountant General’s Department will formally launch the implementation of IPSAS in Ghana on November 28, 2018 at the Swiss Spirit (ALISA) Hotel in Accra, at 10:00am.
The Guest of Honour for the launch is His Excellency Dr. Alhaji Mahamudu Bawumia, Vice President of the Republic of Ghana.
Key note address will be delivered by Hon. Ken Ofori Atta, the Minister of Finance. The function will be under the chairmanship of by Hon. Yaw Osafo Marfo, the Senior Minister.
- International Public Sector Accounting Standards (IPSAS) are a set of accounting standards issued by the IPSAS Board for use by public sector entities around the world in the preparation of financial statements. These standards are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
- The standards apply to all Public Sector entities other than Government Business Enterprises set up for commercial purposes.
- Its main objective is to improve the quality of general purpose financial reporting by Public Sector entities, leading to better informed assessments of the resource allocation decisions made by governments, thereby increasing transparency and accountability.
- The IPSAS Board has so far issued 40 Standards
- Over 100 countries across the globe have adopted IPSAS
- More than 15 countries in Africa are in various stages of implementing IPSAS
- International bodies like UN African Union and Organization of American States have adopted IPSAS
Benefits of IPSAS
- Improves transparency by providing complete view of government business and performance
- High level of accountability by ensuring accurate recording of government performance and status
- Greater credibility as governments use same accounting standard
- More effective monitoring of the existence and value of assets and liabilities through effective assets management.
- Better matching of cost to revenue by depreciation of assets.
- Support better decision making by using quality information
- Harmonization of reports and statements across nations.
- Better comparison of financial statements among countries
IPSAS IN GHANA
- Ghana announced the adoption of IPSAS Accrual in 2014.
- Implementation will be completed in the year 2023
- The implementation is to further strengthen the Public Financial Management (PFM) Reforms Strategy and the use of Ghana Integrated Financial Management Information System (GIFMIS)
- The Institute of Chartered Accountants Ghana (ICAG) is monitoring IPSAS implementation as the regulator of accountancy practice in Ghana.
- The promulgated PFM Act 2016 (Act 921) provides Legal backing for IPSAS.
The Journey So Far….
- IPSAS Secretariat established in Controller and Accountant – General’s Department.
- IPSAS Implementation Strategy Developed.
- Capacity built for IPSAS Implementation Committee Members.
- Liability and provisions included in financial statements since 2010.
- Fixed assets capitalized and Depreciation thereof charged since 2012.
- Modified Accrual Accounting basis being used currently for production of Consolidated Fund (CF) financial statements.
- The World Bank and SECO are providing part of funding for the implementation.