Caroline Aggestam Pontoppidan, Copenhagen, Denmark is an Associate Professor in Public Sector Accounting and Auditing at Copenhagen Business School. She is also a project manager for UNOPS (an operational arm of the United Nations, helping a range of partners implement $1 billion worth of aid and development projects every year) overseeing the implementation of International Public Sector Accounting (IPSAS). Previous experience includes audit work and project management with The Global Fund to fight Aids, Tuberculosis and Malaria, Geneva, Switzerland, UNCTAD, Geneva, Switzerland and the UNICEF Supply Division, Copenhagen. Isabelle Andernack, Meudon-la-Forêt, France is Accountancy Administrator, BIPM (International Bureau of Weights & Measures). She is the project leader of the BIPM transition from cash accounting to the accrual basis of accounting under IPSAS. Her current teaching activities include: IPSAS, consolidation and public management courses at Paris I Panthéon-Sorbonne (Master 2 Audit, Contrôle et Management Public), IFRS in order to prepare the CIIA at CFAF (Training Centre for Financial Analysts). She is formerly a Partner, and Technical Director of audit division, Fiducial Audit, as well as having worked in the Audit and IFRS teams at Deloitte, PwC and KPMG.

Foreword vii

Acknowledgements ix

About the Authors xi

List of IPSAS with Corresponding IFRS xiii

List of IPSAS with Brief Description xv

Part 1 Introducing Public Sector Accounting

1 Introduction 3

2 Why Converge Public Sector Accounting Practices? 11

3 The IPSASB 17

Part 2 Accrual-based IPSAS

4 The IPSASB Conceptual Framework and Key Accrual Accounting Concepts 35

5 Financial Statements 55

6 Disclosure Standards 109

7 Long-Term (Non-Current) Assets 123

8 Current Assets 167

9 Service Concession Arrangements: Grantor 175

10 Leases and Leasing Arrangements 187

11 Revenues and Expenses 207

12 Employee Benefits, Social Benefits, and Other Liabilities 243

13 Provisions and Contingencies 257

14 Budget Reporting 271

15 Financial Instruments 285

16 Consolidations and Strategic Investments 307

17 Specific Standards: Accounting for Agriculture and Accounting in Hyperinflation Economies 327

18 Recommended Practice Guidelines (RPGs) 339

Part 3 Cash-Based IPSAS

19 Cash Basis IPSAS 351

Part 4 Making the Transition to IPSAS and Closing

20 Making the Transition to IPSAS 375

Conclusion 407

Annex 1: Brief Description of IPSAS 409

Annex 2: Key Characteristics of Public Sector Entities 413

Annex 3: Employee Benefits: An Overview of the Key Principles 415

Annex 4: Appendix to Chapter 21. Transition to IPSAS. Case Example: Iceland IPSAS Implementation Plan 417

Bibliography 425

Index