Cash Basis IPSAS – Limited Scope Review 2015
To make changes to the requirements of the Cash Basis IPSAS dealing with consolidation, external assistance and third party payments that will reduce obstacles to adoption of the IPSAS.
To undertake a high level “housekeeping” review of the IPSAS to ensure that its requirements remain appropriate, including any requirements derived from the equivalent accrual IPSASs.
The Cash Basis IPSAS was issued in January 2003. It comprises two parts:
- Part 1 identifies requirements that must be satisfied to claim compliance with the IPSAS
- Part 2 identifies additional disclosures the reporting entity is encouraged to make as it transitions to the accrual basis.
The IPSAS was updated with additional requirements and encouragements about the presentation of budget information in 2006 and external assistance in 2007.
While there are different views about just how many jurisdictions have adopted the Cash Basis IPSAS, there is general agreement that it is not widely adopted.
During 2008 – 2010 an IPSASB Task Force undertook a review of the difficulties that developing economies had experienced in implementing the Cash Basis IPSAS. The Task Force identified the requirements for consolidation of all controlled entities and for disclosure of information about external assistance and third party payments as major obstacles to its adoption. The major reasons these obstacles arose included incompatibility with existing legislation, inability to access necessary data on a timely basis and limited technical and other resources. The Project History of the Cash Basis Review 2008-2010 (see completed projects) outlines the work and conclusions of the Task Force)
Recent input from the ICGFM also notes that satisfying the requirements related to consolidation, external assistance and third party payments continues to be major impediments to adoption of the IPSAS.