International Public Sector Accounting Standards (IPSAS) are a set of accounting standards issued by the IPSAS Board for use by public sector entities around the world in the preparation of financial statements. These standards are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
Objective IPSAS aims to improve the quality of general purpose financial reporting by public sector entities, leading to better informed assessments of the resource allocation decisions made by governments, thereby increasing transparency and accountability.
Scope IPSAS are accounting standards for application by national governments, regional (e.g., state, provincial, territorial) governments, local (e.g., city, town) governments and related governmental entities. IPSAS do not apply to government business enterprises.
List of Accrual-Basis IPSAS Standards
The following is a list of accrual-basis standards issued by the IPSASB as of 2025:
IPSAS 1 to 4: General Reporting IPSAS 1: Presentation of Financial Statements: Sets out the overall considerations for the presentation of financial statements, including their structure and minimum requirements for content. IPSAS 2: Cash Flow Statements: Requires the provision of information about the historical changes in cash and cash equivalents, classified by operating, investing, and financing activities. IPSAS 3: Accounting Policies, Changes in Accounting Estimates and Errors: Prescribes the criteria for selecting and changing accounting policies and the treatment of changes in estimates. IPSAS 4: The Effects of Changes in Foreign Exchange Rates: Prescribes how to include foreign currency transactions and translate foreign operations into the presentation currency.
IPSAS 5 to 13: Assets and Costs IPSAS 5: Borrowing Costs: Prescribes the accounting treatment for borrowing costs, generally requiring them to be expensed as incurred. IPSAS 9: Revenue from Exchange Transactions: Establishes the accounting treatment of revenue arising from exchange transactions. IPSAS 10: Financial Reporting in Hyperinflationary Economies: Prescribes the methodology for restating financial statements of an entity whose functional currency is that of a hyperinflationary economy. IPSAS 11: Construction Contracts: Prescribes the allocation of contract revenue and contract costs to the reporting periods in which work is performed. IPSAS 12: Inventories: Prescribes the accounting treatment for inventories, including cost determination and subsequent recognition as an expense. IPSAS 13: Leases: Prescribes the appropriate accounting policies and disclosures for both lessees and lessors.
IPSAS 14 to 21: Provisions and Property IPSAS 14: Events After the Reporting Date: Prescribes when an entity should adjust its financial statements for events occurring after the reporting date. IPSAS 16: Investment Property: Prescribes the accounting treatment for investment property and related disclosure requirements. IPSAS 17: Property, Plant, and Equipment: Prescribes the accounting treatment for property, plant, and equipment (PPE). IPSAS 18: Segment Reporting: Establishes principles for reporting financial information by segments to better understand entity performance. IPSAS 19: Provisions, Contingent Liabilities and Contingent Assets: Prescribes the recognition criteria and measurement bases for provisions and contingencies. IPSAS 20: Related Party Disclosures: Requires the disclosure of the existence of related party relationships and specific transactions. IPSAS 21: Impairment of Non-Cash-Generating Assets: Prescribes procedures to ensure non-cash-generating assets are carried at no more than their recoverable service amount.
IPSAS 23 to 32: Revenue and Benefits IPSAS 23: Revenue from Non-Exchange Transactions (Taxes and Transfers): Addresses revenue arising from non-exchange transactions, such as taxes and government transfers. IPSAS 24: Presentation of Budget Information in Financial Statements: Requires a comparison of budget and actual amounts for entities held publicly accountable for budgets. IPSAS 26: Impairment of Cash-Generating Assets: Prescribes procedures to ensure cash-generating assets are not carried at more than their recoverable amount. IPSAS 27: Agriculture: Prescribes the accounting treatment and disclosures for agricultural activity in the public sector. IPSAS 31: Intangible Assets: Prescribes the accounting treatment for intangible assets not dealt with in another IPSAS. IPSAS 32: Service Concession Arrangements: Grantor: Prescribes the accounting for service concession arrangements by the grantor (public sector entity).
IPSAS 33 to 48: Recent and Specialized Standards IPSAS 33: First-time Adoption of Accrual Basis IPSASs: Provides the framework for entities transitioning from cash-basis to accrual-basis IPSAS. IPSAS 34: Separate Financial Statements: Prescribes accounting requirements for investments in controlled entities and associates in separate financial statements. IPSAS 35: Consolidated Financial Statements: Establishes principles for the preparation of consolidated financial statements when an entity controls others. IPSAS 40: Public Sector Combinations: Prescribes the accounting for public sector combinations, such as mergers and acquisitions. IPSAS 41: Financial Instruments: Establishes principles for reporting financial assets and liabilities to represent future cash flows. IPSAS 42: Social Benefits: Provides requirements for recognizing and measuring expenses and liabilities for social benefits like pensions. IPSAS 43: Leases: Introduces a right-of-use model for lessees, replacing the old classification of operating leases. IPSAS 48: Retirement Benefit Plans: Establishes requirements for the financial reporting of retirement benefit plans.
Convergence with IFRS IPSAS are based on the International Financial Reporting Standards (IFRS). IPSASB adapts IFRS to a public sector context when appropriate, maintaining the original text unless a departure is warranted.
Language The approved text of IPSAS standards is that published by the IPSASB in the English language. The IPSASB Handbook has been translated from English into a number of languages, including French , Spanish , German, Russian and Chinese. The Arab Society of Certified Accountants (ASCA) of Jordan issued an Arabic version of the IPSASB Handbook. In addition, Brazil is working on translation of IPSAS into Portuguese. See for more information.
Features There are 42 standards on the accrual basis of accounting and one standard on the cash basis of accounting (source: IPSAS Handbook published March 2011). When the accrual basis of accounting underlies the preparation of the financial statements, the financial statements will include: the statement of financial position (IPSAS 1), the statement of financial performance (IPSAS 1), the cash flow statement (IPSAS 2), the statement of changes in net assets/equity (IPSAS 1), the notes to the financial statements, or annex (IPSAS 1). When the cash basis of accounting underlies the preparation of the financial statements, the primary financial statement is the statement of cash receipts and payments.
Funding Multilateral development banks (World Bank, ADB) provide a substantial amount of funding for the work of IPSASB. Other sources of revenue for the development of IPSASs include funding from international, national and regional government entities. In addition, IFAC (International Federation of Accountants) and the CICA (Canadian Institute of Chartered Accountants) support the IPSASB activity.
Impact of the credit crisis on public sector accounting The credit crisis has raised several public sector accounting issues. Governments have extended credit to banks, guaranteed the liabilities of banks, purchased impaired debt instruments and in some instances have assumed control of banks. The unique nature of the credit crisis and the unprecedented response by governments around the world has reinforced the importance of high-quality standards for financial reporting by governments. The credit crisis has increased the need for accountability in the public sector and for transparency in its financial dealings.
Adoption by intergovernmental organizations The following intergovernmental organizations have adopted IPSAS or are in the process of adopting IPSAS: Commonwealth Secretariat: Adopted IPSAS as the basis for financial reporting from 1 July 2008 i.e. Financial Year 2008–2009. Source: Commonwealth Secretariat Website 2008-09 Audited Financial Statements (Page 5 under Accounting Policies). CoE (Council of Europe): Issues IPSAS compliant financial statements since 2007. EC (European Communities): Issues IPSAS-similar financial statements since 2005. ESA (European Space Agency): Aims to be IPSAS compliant by January 1, 2010. EUMETSAT (European Organisation for the Exploitation of Meteorological Satellites): Aims to be IPSAS compliant with the production of the annual accounts 2012, in March 2013. INTERPOL (International Criminal Police Organization): From 2007 onwards, financial statements are prepared in accordance with INTERPOL's Financial Regulations and in compliance with IPSAS. If there is a divergence between IPSAS and INTERPOL's Financial Regulations, the INTERPOL Financial Regulations have been applied. Divergences are not deemed to be significant. ITER (ITER Organization – IO): Issues IPSAS financial statements since 2008. NATO (North Atlantic Treaty Organization): Issues IPSAS financial statements since 2008. OECD (Organisation for Economic Co-operation and Development): Issues IPSAS-compliant financial statements since 2000, the first body in the world to do so. BIPM (BIPM): Issues IPSAS financial statements since 2010.
United Nations System UN (United Nations), Programmes and Funds (such as UNDP, UNFPA, UNICEF and UNHCR), Specialized Agencies (such as FAO, ICAO, ILO, UNIDO, UNESCO, UNOPS and WHO) and Related Organizations (such as IAEA, OPCW, the World Trade Organization, and the World Meteorological Organization) aim to be IPSAS compliant. WFP (World Food Programme): WFP is the first United Nations agency to implement IPSAS. In its 2008 financial statements,The financial statements of WFP are available from: WFP adopted all standards issued by the IPSAS Board including several standards prior to their effective date. PNUD: Adoption in progress (2009/2012) IPSAS Manager Mark Fielding-Pritchard reports that UN Women adopted in full IPSAS from 1 January 2012. This was followed by a clean audit report from UNBoA as of 31 December 2012.
Adoption by country Many governments say they are introducing IPSAS because it is considered to be good practice. However, very few governments have actually adopted the standards. In terms of the Cash Basis IPSAS, not a single country in the world has actually adopted the standard. The main problem is the key requirement to produce consolidated financial statements for all controlled entities. Consolidating government business entities with ministries and departments would be very time-consuming, and almost all governments consider that it is not worth the very real costs. Afghanistan – Process in place to adopt IPSAS, first cash basis then accrual basis. Legislation passed. Abu Dhabi – Prepared 2010 financial statements in accordance with accrual accounting IPSAS for some departments and municipalities. Albania – Applies cash basis of accounting. Law requires modified cash basis of accounting (including accounts payable). Plans to adopt cash basis IPSAS with the possibility of applying accrual accounting IPSAS subsequently. Algeria – World Bank project for accounting and other reform includes IPSAS. Argentina – Process in place to develop public sector accounting standards that are harmonized with accrual accounting IPSAS.