19 March 2012
The International Federation of Accountants (IFAC), the global organisation for the accountancy profession, today released Policy Position Paper 4, Public Sector Financial Management Transparency and Accountability: the use of International Public Sector Accounting Standards.
The paper sets out IFAC's view that governments around the world must provide clear and comprehensive information regarding the financial consequences of economic, political, and social decisions, in order to protect the public as well as investors in government bonds. It is issued at a time when deficiencies in many governments' financial management, transparency, and accountability have become more prominent, as a result of the worsening sovereign debt problems around the globe. Transparency and accountability can only be provided through a high-quality, robust, and effective accrual-based financial reporting system, which allows for government assets and liabilities (including debt) to be appropriately recorded, reported, and disclosed - and hence effectively monitored.
The most globally accepted high-quality accrual-based financial reporting system is the International Public Sector Accounting Standards (IPSASs), issued by the International Public Sector Accounting Standards Board (IPSASB), and independent standard-setting board supported by IFAC.
For more information about the Policy Paper and use of IPSASs, visit the IFAC website at: http://www.ifac.org/news-events/2012-03/ifac-releases-policy-position-paper-four-calling-enhanced-public-sector-financia