The International Public Sector Accounting Standards Board (IPSASB) seeks to change the way the world does business. Its mission is to develop accounting standards and guidance for use by public sector organizations globally in the preparation of general purpose financial reports. IPSASB’s operations is supported by IFAC, the International Federation of Accountants.
Many companies find true success on a global scale only after taking their information and investment opportunities public. In areas where the information and skills for such a move are not already part of an organization or country’s assets, this is very hard to do. By helping these organizations in countries underrepresented in international markets better understand and implement accrual-based reports, global trading opportunities are growing.
The IPSASB does this through a number of techniques including developing high-quality public sector financial reporting standards, developing other publications for the public sector, and raising awareness of IPSASs, or International Public Sector Accounting Standards, and the benefits of their adoption.
Changes to the Standards
Companies that have been using or are getting ready to adopt International Public Sector Accounting Standards should be aware that the IPSASB has recently released information about a new standard meant to help companies who are issuing statements to the board for the first time.
Many companies are moving to this accounting program to better their relations on an international scale and to increase their capacity to harness the global capabilities that come with new advances in technology and communication.
IPSAS 33 Standard
With so many companies moving to take advantage of this system, there has been some understandable confusion. According to the powers that be within the board, that is the reason for the recent (Jan. 30, 2015) creation of the IPSAS 33 Standard.
Andreas Bergmann, an IPSASB chair explained that, “With IPSAS 33, the IPSASB has developed a comprehensive standard that provides guidance and exemptions for entities that are transitioning to accrual basis IPSASs. IPSAS 33 meets the needs of both preparers and users of financial statements during the transition period. Its publication is a further incentive for entities to make the decision to apply IPSASs.”
In a nutshell, the provision offers new applicants three years to gather the information necessary to offer a complete presentation of assets and liabilities. In areas where proper financial records have not been kept, this creates an opportunity to have global support while building up the resources needed to better compete in and contribute to an international market.
Many experts in the industry, like those at Public Finance International, feel that this is a way to better streamline the process to begin working with the organization, and see it as a huge step towards better unity within the international trade and communications arena.
Already, third-world countries like Ghana and Nigeria are making plans to utilize these standards in their financial statements and recordings, which could be a huge boon to the local economies in those remote areas.
New Consultative Advisory Board
As many new countries and companies are applying to operate under the banner of the IPSASB, the organization has been looking for new ways to offer the support needed. It seems that each new branch and country has their own specific obstacles and needs.
To help meet burgeoning demand and varied needs, the IPSASB has created a consultative advisory board. Thomas Muller-Marqués Berger with Accounting Today believes that this has been established as a means to help with the demand, but also as a PR move to gain more recognition for the efforts of the group.
It remains to be seen if the new group will serve the purpose on either end, but many experts in the international financial industry see this as a positive move for the group. The hope is that more specific needs will be communicated and directly addressed. For a group so new trying to handle so many diverse complications, a board of this nature could be a very good move if the members are carefully chosen.
In the end, companies applying will not be terribly successful without implementing the efficient methods to store, organize, and report the information needed to meet compliance standards. Even with the allotted three years to pull things together, it will be impossible to compete in a technology-driven market without being armed with technology.
The best data storage tool to have in the accounting arsenal of any company is a good Document Management Software (DMS) program. Once a program of this nature is purchased and set up, the needed files can easily be found, organized, and compiled for the necessary reports. Utilizing an accounting tool of this nature will allow companies new to the global market to focus efforts on marketing, production, and communication, all of which will lead to more revenue.