New IFAC Digital platform assists public sector transition from Cash to Accrual accounting

31 March 2022
Accounting
South African Accounting Academy

This tool is intended to assist public sector entities, including national, regional, and local governments, and related governmental entities (other than government business enterprises) and international governmental organizations wishing to report on the accrual basis of accounting. It is primarily intended to assist public sector entities transitioning from cash to the accrual basis of accounting and:

It may also be useful for entities currently reporting on an accrual basis and considering the adoption of IPSAS; and
Some of the case studies and other material may help public sector professionals and professional accountants in the public sector in particular, who find themselves facing accounting and public financial management challenges, for the first time.

Click here to access the Pathways to Accrual tool:

https://ifac.us7.list-manage.com/track/click?u=9e7d9671563ff754a328b2833&id=1570914b12&e=ca73287098

Relevance to Auditors, Independent Reviewers & Accountants:

The IPSAS sets out the accounting treatment (measurement and recognition), which your clients in the public sector must comply with, and which you must assess compliance with. Any non-compliance may affect your audit opinion.
If you are compiling your public sector client’s financial statements, you need to apply IPSAS, as well as the correct basis of accounting, i.e. cash vs accrual.
You should be aware of this tool, so that you can advise your public sector clients transitioning from cash to the accrual basis of accounting.

Relevance to Your clients:

IPSAS sets out the standards, which your clients in the public sector must comply with, in order to compile financial statements in accordance with the applicable financial reporting framework, and whether they need to change from cash basis to accrual basis of accounting.
This new tool will assist public sector entities transitioning from cash to the accrual basis of accounting.

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