09 November 2017

IFAC: IPSASB issues revised cash basis IPSAS

The IPSASB has published a revised IPSAS, Financial Reporting under the Cash Basis of Accounting (the Cash Basis IPSAS). The amendments address some of the main barriers to adoption of this standard.

This revised version of the Cash Basis IPSAS implements the proposals made in ED 61, Amendments to Financial Reporting under the Cash Basis of Accounting. These amendments recast from mandatory to voluntary:

• Preparation of consolidated financial statements;
• Disclosure of information about external and other assistance; and
• Disclosure of information about payments made by third parties.

The amendments also ensure that the standard’s requirements and encouragements are better aligned with requirements in relevant accrual IPSAS issued since 2008.

The revised version takes effect on January 1, 2019, with earlier adoption encouraged.

“These amendments respond to the views of preparers by removing some of the obstacles to adoption of the Cash Basis IPSAS,” said IPSASB Chair Ian Carruthers. “Robust financial reporting on a cash basis can be an important foundation for broader improvements in public sector financial management. However, the revisions make clear that the IPSASB views the Cash Basis IPSAS as an important stepping stone on the journey to full accrual accounting rather than an end in itself.”

Full press release

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