IFAC urges the G-20 to promote greater adoption of IPSASs, by adding these standards to the FSB’s list of standards that are designated as deserving of priority implementation.
“Countries continue to default on their debt, yet aren’t pushed by governments, credit rating agencies, or financial commentators to significantly improve public sector financial reporting,” said Fayezul Choudhury, Chief Executive Officer of IFAC. “These same countries require private sector companies in their jurisdictions to publish audited, accrual-based, financial statements when raising funds in capital markets. What justifies the double standard whereby a government compels private companies to be transparent and accountable, when it avoids using accrual accounting itself—despite having bonds traded on the capital markets?”
Last year, the G-20 Finance Ministers and Central Banks Governors declared a “goal of strengthening the public sector balance sheet” and of “looking at transparency and comparability of public sector reporting, and monitoring the impact of financial sector vulnerabilities on public debt.” IFAC strongly recommends that the G-20 makes enhanced public sector financial management a key priority this year and in the future.
“It is critical that the G-20 focuses on initiatives to improve governments’ financial management and reporting practices. This means making accrual-based financial reporting in accordance with high-quality, globally accepted standards, such as the International Public Sector Accounting Standards™ (IPSASs™), a key objective,” said Mr. Choudhury.
Press release
© IFAC
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article