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IPSASB Welcomes Governance Review Group Recommendations, Including Establishment of a new Public Interest Committee

New York, New York English

The International Public Sector Accounting Standards Board® (IPSASB®) welcomes the IPSASB Governance Review Group’s final recommendations on the future governance of the IPSASB, released today. The recommendations include the establishment of a governance body—the Public Interest Committee—to ensure that the public interest is served by the IPSASB’s standard-setting activities, as well as the establishment of an IPSASB Consultative Advisory Group.

The Review Group was formed to assess the IPSASB’s governance arrangements and to make recommendations to strengthen these processes and structures.  It is chaired by the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), and World Bank; members are representatives from the Financial Stability Board (FSB), International Organization of Securities Commissions (IOSCO), and International Organization of Supreme Audit Institutions (INTOSAI).

“The IPSASB has a growing reputation as the international standard setter for the public sector, and its standards are increasingly considered benchmarks for public sector financial reporting,” noted IPSASB Chair Dr. Andreas Bergmann. “The Review Group’s recommendations on the board’s governance will provide further support to these trends by assuring governments and other stakeholders that the board is independent, that it acts in the public interest, and that its standards result from widespread and carefully considered comment from interested stakeholders around the world.”

The IPSASB Review Group has developed draft Terms of Reference for the Public Interest Committee and plans an inaugural meeting of the Committee by the end of March 2015. The recommendations are available here.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. It receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

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. It is comprised of over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

IFAC Welcomes Review Group Report to Enhance Governance Arrangements for Public Sector Accounting Standards

New York, New York English

The International Federation of Accountants® (IFAC®) welcomes the release today of the International Public Sector Accounting Standards Board® (IPSASB®) Governance Review Group[1] report on the future governance of the IPSASB, which is an important milestone in further strengthening its governance and credibility.

“We fully support the recommendations of the Review Group, and believe they will strongly enhance the robustness of the standard-setting arrangements and ultimately improve the legitimacy and acceptance of the International Public Sector Accounting Standards (IPSASs) across the globe” said Fayez Choudhury, Chief Executive Officer of IFAC. “High-quality internationally accepted standards provide the necessary foundation for high-quality financial reporting in the public sector—an area that needs vast improvement in many jurisdictions around the world, and which leads to better government decision-making, transparency, and accountability.”

Following a public consultation early last year, the Review Group made several important recommendations, including that:

  • a governance body, the Public Interest Committee, be established to ensure that the public interest is served by the standard-setting activities of the IPSASB; the Committee’s membership should include, but not be limited to, individuals from the IMF, OECD, World Bank Group, and INTOSAI;
  • the Committee’s objectives should be to review and advise IFAC and the IPSASB on the (i) terms of reference of the IPSASB; (ii) arrangements for nomination and appointment of IPSAB members; and (iii) procedures and processes for formulation of the IPSASB’s strategy and work plan and development of IPSASs to ensure that the views of all relevant stakeholders are sought and given due consideration;
  • the Committee should not have a direct role in the development, adoption, and implementation of public sector accounting standards;
  • IFAC should establish a Consultative Advisory Group (CAG) for the IPSASB; and
  • a public consultation on the effectiveness of the IPSASB’s reformed governance arrangements be undertaken no later than 2020.

“The recommendations represent strong support for robust and balanced standard-setting arrangements, whereby the involvement of the profession, public sector, and international organizations ensure that the standards that are produced are in the public  interest and are high quality—and can be practically implemented.” Mr. Choudhury added, “IFAC is highly appreciative of the work done by the Review Group and its members and looks forward to working with these organizations to put the new arrangements in place in 2016.”


[1]The Review Group is chaired by the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD) and World Bank; members are representatives from the Financial Stability Board (FSB), International Organization of Securities Commissions (IOSCO), and International Organization of Supreme Audit Institutions (INTOSAI).

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 over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.