the need for ipsas then and now
TRANSCRIPT
7/21/2019 The Need for IPSAS Then and Now
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12/11/2014
Luz Loreto-TolentinoAssistant Commissioner
Professional and Institutional Development Sector
Commission on Audit;
system of rules, procedures and practices forgovernment to manage public finances in theareas of:◦ Budgeting
◦ Accounting
◦ Auditing
◦ Cash management
◦ Management of public debt
◦ Revenue generation
◦ Public reporting on public sector financialoperations
Government
Integrated Financial
Management
Information System
GIFMIS)
Develop a web-based application that will
provide real time financial information to
government
Improving TreasuryCash ManagementOperations (ITCMO) –
Put in place a system of cash management thatcan keep daily cash balances of government atappropriate levels
Budget Reportingand PerformanceStandards (BRPS) –
Harmonize and simplify data structures andapply a consistent set of budgeting andaccounting rules and regulations for financialperformance reporting.
Liability m anagement
LM)
Develop a system for recording and reporting
liabilities to better manage NGs financial
exposure
Accounting andAuditing Reforms(AAR)
Harmonize accounting and auditing rules withinternational standards and strengthenparticipatory audit of programs and projects
Capacity Building (CB) Support the various policy reform, businessprocess and system improvements throughtraining and learning
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Harmonize accounting and auditing ruleswith international standards and strengthenparticipatory audit of programs and projects
to provide information that is useful to a widerange of users in making and evaluatingdecisions about the allocation of resources;and
to demonstrate the accountability of theentity for the resources entrusted to it.
improves the quality of financial information;and
facilitates comparison of information acrossgovernments and organisations.
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Adoption of the Philippine Public SectorAccounting Standards
◦ based on the International Public Sector AccountingStandards (IPSAS)
PPSAS provide quality accounting standardsthereby:
◦ enhancing the quality and uniformity in financialreporting by Philippine public sector entities, and
◦ ensuring accountability, transparency andcomparability of financial information with other
public sector entities around the world;
Relevant and useful to users
◦ Users are now in a position to determine how wellthe government manage public sector assets andresources; and to make better decisions onproviding the entity with needed resources
FS are more transparent◦ Users have a more comprehensive view of an
agency’s FP, FP and CF
Improved comparability and consistency of FS
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Content
PPSAS consists of International Public Sector Accounting
Standards (IPSASs) (Accrual Based IPSASsper 2012 Handbook) developed by IPSASBand published by the InternationalFederation of Accountants (IFAC), and
Philippine Application Guidance (PAG)
Content
Philippine Application Guidance (PAG)
Provide supplementary guidance of IPSASsto suit the Philippine public sectorsituation.
States the reason for not adopting someparagraphs of the IPSASs.
Approach to Implementation
28 out of 32 IPSAS shall beimplemented
Phased Implementation
Phase 1 (25 PPSAS for implementationin 2014)
Phase 2 (3 PPSAS for implementationin 2015)
Phase 1 – For implementation in
2014
PPSAS 1- Presentation of Financial
Statements (IPSAS 1)
PPSAS 2- Cash Flow Statements (IPSAS2)
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Phase 1 – For implementation in
2014
PPSAS 3 – Accounting Policies,Changes in Accounting Estimates andErrors (IPSAS 3)
PPSAS 4- The Effects of Changes inFOREX rates (IPSAS 4)
Phase 1
continued
PPSAS 5- Borrowing Costs (IPSAS 5)PPSAS 6- Consolidated and Separate FinancialStatements (IPSAS 6)PPSAS 8 – Interest in Joint Venture (IPSAS 8)PPSAS 9- Revenue from Exchange Transactions(IPSAS 9)
Phase 1
continued
PPSAS 12- Inventories (IPSAS 12)PPSAS 13- Leases (IPSAS 13)PPSAS 14- Events after the Reporting Date (IPSAS
14)PPSAS 16- Investment Property (IPSAS 16)PPSAS 17- Property, Plant and Equipment (IPSAS17)
PPSAS 19- Provisions, Contingent Liabilities andAssets (IPSAS 19)
PPSAS 20 – Related Party Disclosure (IPSAS 20)PPSAS 21- Impairment of Non-Cash GeneratingAssets (IPSAS 21)
PPSAS 23- Revenue from Non- ExchangeTransactions (Taxes and Transfers) (IPSAS 23)
PPSAS 24- Presentation of \Budget Information inFinancial Statements (IPSAS 24)
Phase 1
continued
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PPSAS 26- Impairment of Cash GeneratingAssets (IPSAS 26)
PPSAS 27- Agriculture (IPSAS 27)
PPSAS 28- Financial Instruments Presentation(IPSAS 28)
Phase 1
continued
PPSAS 29-Financial Instruments: Recognitionand Measurement (IPSAS 29)
PPSAS 30- Financial Instruments Disclosure(IPSAS 30)
PPSAS 31- Intangible Assets (IPSAS 31)
PPSAS 32- Service Concession Arrangements:Grantor (IPSAS 32)
Phase 1
continued
Phase 2 – For Implementation in
2015
1. PPSAS 18- Segment Reporting
2. PPSAS 22 – Disclosure of Information
about the General Government Sector3. PPSAS 25- Employee Benefits
Property, Plant and Equipment◦ Ownership vs. control/use/benefit
◦ Public infrastructure projects
◦ Investment property
Comparison of budget and actual
Expenses with no existing budgets
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Conduct of training
Resolution of issues raised
Formulation of an implementation strategy
Cost of implementing◦ Changes on the existing computerized accounting
systems
Capacity building