AUDIT SERVICE BULLETIN – ISSUE 1, 2021

2280

Adoption of IPSAS by Ghana, what public sector auditors should know

The acronym IPSAS stands for International Public Sector Accounting Standards. These are a set of accounting standard, issued by IPSAS Board for use by Public Sector Entities around the world in the preparation of financial statements. IPSAS are high quality global financial reporting standards for application by Public Sector Entities other than Government Business Enterprises (GBE).

Currently, the IPSASB has issued 42 standards with 3 other Recommended Practice Guide (RPG) based on accrual basis of accounting.

Objective of IPSAS
1. To enhance quality and uniformity of Public Sector Financial Reporting throughout the world.

2. The IPSAS are intended to be applied in the preparation of generalā€purpose financial reports that are intended to meet the needs of users who cannot otherwise command reports to meet their specific information needs.

Institutions to apply IPSAS
All Public Section Entities and NGOs other than Government Business Enterprises qualify to make use of IPSAS to present their financial statements. For Instance, In Ghana, Government Business Enterprises (GBEs) include Ghana Water Company (GWC), Electricity Company of Ghana (ECG), Financial Institutions such as Ghana Commercial Bank (GCB), National Investment Bank (NIB), Agricultural Development Bank (ADB) etc.

Instead, these Government Business Enterprises must comply with International Financial Reporting Standards (IFRS) to present their financial statements due to the regulatory requirement of Security and Exchange Commission (SEC), Bank of Ghana (BOG) etc.

 

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AUDIT SERVICE BULLETIN 1ST EDITION