International Public Sector Accounting Standards (IPSAS) are the international financial reporting standards for public sector government activities. It is of particular significance for the financial reporting of public sector entities as it is applicable for all general purpose financial statements prepared under the accrual basis of accounting. Accrual based international accounting standards call for financial statements which consolidate all entities under government control.
The objectives for Objective of Accrual basis Accounting are to:
- Recognise economic events at the time at which they occur as well as when the related cash receipts and payments change hands.
- Records all stocks of assets and liabilities, in balance sheets
- Monitors liabilities and contingent liabilities such as employee entitlements, environmental obligations, insurance claim obligations etc.
- Consolidates all entities under government control.
SIL provides a holistic approach for a quick on-boarding and fast return on investment. SIL shares it’s the knowledge and discuss the challenges around IPSAS and define a common roadmap with clear milestones and activities to ensure change management. SIL has implemented accrual IPSAS for the Office of the Treasury under the aegis of the Ministry of Finance and Economic Development (MOFED) in Mauritius. SIL has been involved in similar reforms in other countries, and has even helped the Treasury of the Government of Kenya in the specific area of cash management.