The International Public Sector Accounting Standards Board^® (IPSASB^®) has released a Consultation Paper (CP), Financial Reporting for Heritage in the Public Sector, for comment.

”There is currently a variety of financial reporting practices for heritage items, which reduces the comparability of public sector entities’ general purpose financial reports (GPFRs),” said IPSASB Chair Ian Carruthers. “Many public sector entities have heritage responsibilities and this Consultation Paper is a first step toward developing financial reporting guidance to support accountability and decision making in this area. We look forward to receiving constituents’ views on our proposals.”

The paper describes heritage items as items that are intended to be held indefinitely and preserved for the benefit of present and future generations because of their rarity and/or significance. It proposes that:

• heritage items’ special characteristics do not prevent them from being assets for the purposes of financial reporting;
• heritage items should be recognized in the statement of financial position if they meet the recognition criteria in the Conceptual Framework; and
• in many cases, it will be possible to assign a monetary value to heritage assets.

The paper also discusses:

• initial and subsequent measurement of heritage assets;
• whether heritage preservation responsibilities could involve present obligations for entities, which should be recognized as liabilities in the financial statements; and
• presentation of information for heritage in GPFRs.

How to Comment
To access the Consultation Paper and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website, www.ipsasb.org. Comments on the Consultation Paper are requested by September 30, 2017. The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this Consultation Paper to their members and employees.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through the development of accrual-based International Public Sector Accounting Standards^® (IPSAS^®) and other guidance for use by governments and other public sector entities. It receives support from international financial institutions, governments, and professional bodies around the world, as well as from IFAC. IPSASB’s governance and standard setting are overseen by the Public Interest Committee (PIC), ensuring its activities follow due process and reflect the public interest.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

The Public Interest Oversight Board has approved an extension of Prof. Arnold Schilder’s term as Chairman of the International Auditing and Assurance Standards Board (IAASB) through 2018. This exceptional extension beyond Prof. Schilder’s normal term is due to the current review of potential enhancements to international standard-setting arrangements being undertaken by key stakeholders.

Since his initial appointment in 2009, Prof. Schilder has played a key role in guiding the IAASB as it strives to enhance the quality and consistency of auditing and assurance practices throughout the world. There are now 113 jurisdictions around the world using or in the process of adopting the clarified International Standards on Auditing.

"I am honored to have the opportunity to continue to lead the IAASB, particularly at this time,” said Prof. Schilder. “We are now in the midst of intense deliberations on changes to a number of fundamental standards underpinning high-quality audits, including those addressing accounting estimates, auditor risk assessments, group audits, and quality control. In addition, we are continuing our work on the implications of data analytics, professional skepticism, emerging forms of external reporting, and the needs of small- and medium-sized entities."

Prof. Schilder has brought a wealth of prior experience to his work on the IAASB. He was a member of the Managing Board of the Dutch Central Bank, responsible in particular for banking regulation and supervision. He has served as the chair of the Basel Committee on Banking Supervision's Accounting Task Force and was nominated by the Basel Committee to be a member of the Public Interest Oversight Board when it was first established. Earlier in his career he was president of Royal NIVRA (now Nederlandse Beroepsorganisatie van Accountants) and was an audit practitioner for nearly 26 years, serving small- and medium-sized entities and as an international audit partner. He also served as a part-time professor of auditing at the Universities of Amsterdam and Maastricht.

About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

IAASB Technical Director Matthew Waldron hosts the March 2017 audio podcast featuring Chairman Arnold Schilder and IAASB Members Rich Sharko and Megan Zietsman to discuss key activities and events from the board's March 13-17, 2017 meeting in Lima, Peru.

• 0:00 to 1:03          Introduction
• 1:04 to 2:02          Chairman’s overview
• 2:14 to 5:43          ISA 315
• 5:43 to 6:56          Enhancing Audit Quality - Group Audits and Quality Control
• 6:57 to 8:17          Professional Skepticism
• 8:20 to 12:17        ISA 540
• 12:18 to 16:27      SSB Coordination and SMP
• 16:28 to 17:58      Closing Remarks and next meeting

Accounting education standards development is the centerpiece of the IAESB five-year strategy that also includes implementation support, a post-implementation review of existing standards, and strategic engagement and communication with the board’s stakeholders. The primary goal is to ensure that the accounting profession has the necessary skills to meet the ever-changing demands of business and the public sector, and thereby increase public confidence.

Nearly 60% of Caribbean countries included in a recent survey have already adopted International Public Sector Accounting Standards (IPSAS) or national accounting standards based on IPSAS, and the remaining 40% are at various stages of the implementation process according to Accrual Practices and Reform Expectations in the Caribbean, a study conducted by the International Federation of Accountants (IFAC) and the Institute of Chartered Accountants of the Caribbean (ICAC).

This study, the result of an initial survey during the 2016 Strengthening Public Financial Reporting and Accountability conference in the Bahamas, examined the current status of public financial management (PFM) reforms in the Caribbean. It also analyzed the individual countries to assess: (a) the current and future accounting basis and reporting standards for public financial statements; (b) the current and future recognition basis for budgeting; and (c) the current and future external audit requirements for public financial statements.

“Study participants identified areas where stakeholder groups could partner to step up knowledge sharing and collaboration between governments, the accountancy profession, and other stakeholders in the Caribbean,” said Jasmine Davis, ICAC President. “These partnerships may give rise to improved public financial reporting, better informed public decision making, better quality of public services, better management of assets and liabilities, better public financial management, increased accountability, and, ultimately, enhanced trust of citizens in government.”

The study showed that most Caribbean countries are in the process of reforming and modernizing their financial reporting, budgeting, and auditing practices.

• After the reforms have been implemented, the regional balance will move from mostly cash-based accounting to nearly two-thirds using accrual-based accounting. In addition, 60% of those surveyed are expected to have implemented IPSAS while the other 40% will be using national standards based on IPSAS.
• For preparation of the budget, however, most central governments in the Caribbean (60%) still use the cash basis, with only Belize transitioning to accrual.
• Almost all Caribbean countries included in this study already use internationally recognized auditing standards (International Standards on Auditing or International Standards of Supreme Audit Institutions) or national standards based on international standards.

“IFAC has been a driver of change in the Caribbean to modernization accounting systems and move toward more efficient and transparent public financial management. In collaboration with regional and national professional accountancy organizations in the Caribbean, IFAC works to promote conferences, train, and develop cooperation agreements,” said Fayez Choudhury, IFAC CEO. ”The study also suggests that most countries in the Caribbean recognize the importance of high-quality, reliable, and transparent public financial accounting and reporting arrangements and are gradually implementing reforms to achieve these desired outcomes. IFAC, through its Accountability. Now. initiative, together with the ICAC and the various Caribbean national professional accountancy organizations, continues to support this transition.”

A digital version of the report can be found at on the IFAC and ICAC websites.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

About ICAC
Since its establishment in 1988, the Institute of Chartered Accountants of the Caribbean has provided a forum for the advancement of the accountancy profession in the Caribbean. Today, with a network of approximately 3,000 professionals, the ICAC is the leading regional organization dedicated to advancing the interest of accountants and professionals in the finance industry within the Caribbean through the promotion of internationally acceptable standards and best practices, thought leadership, research and continuing professional development. In 2006, the ICAC was recognized as an “Acknowledged Regional Grouping” of IFAC.