• providing guidance on how to use IPSAS in practice, with the aid of cases, interactive exercises and formative questions • explaining the difference between the cash basis IPSAS and accrual-based IPSAS • providing an overview of how IPSAS are used around the world • explaining the workings of the IPSASB and how these are developing. However, IAS 7 gives you 2 exceptions. IPSAS 3 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance. x�b```f``������~�A��b�@�� Q``�mhe�`��`Y ��W�͐9������'U�6�91�c�e�y��i˭�[� `o����%+�m�=�8�'�Ҳ)i�b%+�Jv��je�%�{͂J�D�qY�TZ�X.�1�P���\��j5�%ɞ� IAS 16 30, Financial Instruments: Disclosures. 83 IPSAS 2 IPSAS 2—CASH FLOW STATEMENTS PUBLIC SECTOR Acknowledgment This International Public Sector Accounting Standard (IPSAS) is drawn primarily from International Accounting Standard (IAS) 7, “Cash Flow Statements” published by the International Accounting Standards Board (IASB). Share this article “What is the difference between IFRS vs IAS” to others who are searching for the IAS vs IFRS and let them know more about IFRS (International Financial Reporting Standards) and International Accounting Standards – IAS. 0000001377 00000 n How does IPSAS 2 differ from IAS 7• Use of terms revenue, statement of financialperformance and net assets/equity VsIncome, Income Statement and Equity• IPSAS 2 allows either the direct and indirectmethod to be used. In the world of accounting there are lots of principles and standards to be followed, most especially if you are trying to prepare those meticulously crafted financial statements and the like. Also hope something new. Editor’s note: This article was updated with new content on Jan. 21, 2020. stream The new IPSAS are based on IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements and IAS 28 Investments in Associates and Joint Ventures, including the amendments made in 2012 in relation to transitional guidance and investment entities. 88 14 3. IPSAS Intro and Conceptual Framework ... IAS 16 Property, Plant and Equipment - summary - Duration: 7:33. %���� A snapshot of GAAP differences between IPSAS and IFRS 2 8) Impairment of non-cash-generating assets In light of the assets recognized based purely on their service potential (as opposed to economic benefits), IPSAS also caters specifically for impairment considerations for non-cash-generating assets. Implementing Accrual accounting on the entities within the budget. Usama Bin Qadeer. IAS vs. GAAP . Content. International Public Sector Accounting Standards (IPSASs) and Statistical Bases of Financial Reporting: An Analysis of Differences and Recommendations for Convergence. IPSAS/IFRS Alignment Dashboard IPSASB Meeting (September 2018) Page . Other differences also arise due to the difference in the timing of the adoption of the two standards. 3 0 obj Financial reporting in hyperinflationary economies – understanding IAS 29 2006 update (reflecting impact of IFRIC 7) of a guide for entities applying IAS 29. Tier 1 and Tier 2. Cash Flow Statement. hތX�r��}�W�#Pe˜���P��U�ͪLn%Uv "S W�wd��ws�{@���e�ε����m��u��r7�����fFi5{�A��܈t��$B�f/� �9ZA�f6��0�U��:OԷQ�fs����a�Bj�V����2�X� ����6�,��֊���(��":�n6�C��X�Jq c�T5���*�̏�O�b�eT�� �;�J��y�ģ����p�����N3_��峌2���i���cB�'*�=L����%s���8"�v2�I����A����y�����j4&~��7���������(B��A���?͡P��dGAv. For-profit entities must apply these current accounting standards (NZ IFRS, NZ IAS, FRS), interpretations (NZ IFRIC, NZ SIC) and other pronouncements issued by the XRB Board or the NZASB for periods beginning on or after 1 December 2012. Requires the presentation of information about historical changes in a public sector entitys cash and cash equivalent using a cash flow statement. H2: The degree of similarity between IPSAS 7 and IAS 28 is high. Topics o Introduction to IPSASB and IPSAS o Accounting Standards Setting Bodies o Government Accounting o IPSAS and IFRS Equivalents Frameworks and selection of accounting policies (IPSAS 3/IAS … Related Party Disclosures (IPSAS 20/IAS 24) Recommended Practice Guideline (RPG) 2 — Financial Statement Discussion and Analysis and IASB’s guidance on Management Commentary; Key differences – IPSAS standards with no IFRS equivalent Budget Reporting (IPSAS 24) Disclosure of Financial Information About the General Government Sector (IPSAS 22) [IAS 2.25] Write-down to net realisable value. Extracts from IAS 7 are IPSAS 17 PPE.doc 04/04/2008 Page 2 of 22 classes recommended by this paper, and the useful lives related to the PPE classes suggested by the New York focus group. 0000000016 00000 n Comparison with IAS 27 . Difference Between Magistrate and Judge: 2. 5 Direct Adoption of IPSAS. Status: 31, Intangible Assets. IAS vs Indian Revenue Service: 3. IPSAS 2 encourages disclosure of a reconciliation of surplus or deficit to operating cash flows in the notes to the financial statements. IPSAS 6 176 International Public Sector Accounting Standard 6, “Consolidated and Separated Financial Statements” (IPSAS 6) is set out in paragraphs 1−71 and the Appendix. IPSASs Summary • IPSAS 1 Presentation of Financial Statements IAS 1 • IPSAS 2 Cash Flow Statements IAS 7 • IPSAS 3 Accounting Policies, Changes in Accounting Estimates and Errors IAS 8 • IPSAS 4 The Effects of Changes in Foreign Exchange Rates IAS 21 • IPSAS 5 Borrowing Costs IAS 23 • IPSAS 6 Consolidated and Separate Financial Statements IAS 27 16/05/2016 8 9. In the section about discount rates there are two types of differences between IPSAS 25 and IAS 19: (a) Difference related to the elimination of the corridor approach; and (b) Difference related to public sector specific reasons. IAS 2 Inventories contains the requirements on how to account for most types of inventory. MAJOR DIFFERENCE BETWEEN IPSAS & IFRS Revenue Exchange transactions, on the other hand, are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange (see IPSAS 9). IAS 7 Cash Flow Statements IPSAS 2 Cash Flow Statements. <>/Metadata 3003 0 R/ViewerPreferences 3004 0 R>> %PDF-1.7 IAS 27 (replaced) IPSAS 7—Investments in Associates 2. Cash flows are inflows and outflows of cash and cash equivalents. Come to London and attend our unique and detailed guide to the key similarities and differences between IFRS and IPSAS. 0000000576 00000 n page 12.16 IPSAS 17 Property, Plant and Equipment Item 12.4 Marked-up IPSASs 17 16, 3 and 6 PSC New Delhi November 2004 INTERNATIONAL PUBLIC … Accrual Basis IPSAS may be obtained free of charge from IPSASB. All the paragraphs have equal authority. January 23, 2019 • 8:51 am. Reply. Difference Between Commissioner of Police and DGP: 6. For existing IFRS preparers and first-time adopters. IPSAS IFRS Status IPSAS IFRS Status IPSAS IFRS Status . Difference Between District Collector and Deputy Commissioner: 8. 101 0 obj <>stream 39 correctly.. Thanks for the difference between IAS & IFRS also hope something new. What is IAS 40 4. IAS 7. e�9b-�|�/���q���e������`�u �����$�PB�� 0WU��R�XFA�� �Dɡ�����[���X Z@2����;���Ol8e�c�� �rH��20��L@l�>L{@����|3Z�!�����=X���@� k%� H3: The degree of similarity between IPSAS 8 and IAS 31 is high. IAS 14 . There are approximately 180 differences between International Public Sector Accounting Standards (IPSAS) and the present International Financial Reporting Standards (IFRS). IAS 1 17, Property, Plant, and Equipment. IFRS is a set of international accounting standards, while GAAP is a set of rules that accountants follow. There are some differences between IPSAS 19 and IAS 37 as follows: • IPSAS 19 includes commentary additional to that in IAS 37 to clarify the applicability of the standards to accounting by public sector entities. The standard requires inventories to be measured at the lower of cost and net realisable value (NRV) and outlines acceptable methods of determining cost, including specific identification (in some cases), first-in first-out (FIFO) and weighted average cost. IAS 38 3, Accounting Policies, Changes in Principal definitions . IPSASs Summary … • Addition of an appendix showing the paper’s history and the relevant excerpt from the December 2006 Task Force meeting’s minutes. IAS 281. 0000002723 00000 n MAJOR DIFFERENCE BETWEEN IPSAS & IFRS Revenue Exchange transactions, on the other hand, are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange (see IPSAS 9). International Public Sector Accounting Standards. NRV is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. To illustrate, IPSAS have yet to introduce the equivalent standards to the new IFRS 10, 11 and 12 and to the revised IAS 19, Employee Benefits. IPSASB adapts IFRS to a public sector context when appropriate. 1 0 obj startxref This is the key difference between IAS 16 and IAS 40. The cash flow statement reports the cash flows during a reporting period and serves to analyze the changes in cash and cash equivalents. August 18, 2019 • 2:01 pm. Overview and Key Difference 2. The IPSASB considered but not prioritized for addition to the Work Plan 2019-2023 to update IPSAS 1 with the most recent version of IAS 1. However the main differences between IPSAS 17 and IAS 16 2003 are as follows from ACCT 60100 at University of Notre Dame Accrual Basis IPSAS are presented in Volumes 1, 2, and 3. Companies really struggled and paid high fees for consultants just to apply IAS. Therefore, International Accounting Standards Board (IASB) decided to rewrite and replace IAS 39.The new standard got the name IFRS 9 Financial Instruments. Difference Between IAS and IPS: 5. However, in recent years, UN accounting professionals and auditors have recognised that UNSAS has not kept pace with best practices in the rapidly changing international accounting … Thanks for the difference between IAS & IFRS. See below: Interpretations > Amendments > Explanatory Guides > Standards. This Standard should be applied in the presentation of all general purpose financial statements prepared and presented under the accrual basis of accounting in accordance with International Public Sector Accounting Standards. Very nice. [IAS 2.6] Any write-down to NRV should be recognised as an expense in the period in which the write-down occurs. IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Cash Flow Statements IPSAS 2 (May 2000) IAS 7 Current Work Plan (December 1992) • IPSAS 2 contains a different set of definitions. Explained in such a way which can be understood easily. Financial statement presentation and accounting policy Develops an overview of: ®financial statements (IPSAS 1) cash flow statements (IPSAS® 2) accounting policies, changes in accounting estimates, and e The Research Report contained the recommendations of the Working Group and not the views of the IPSASB. 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