IPSAS has been saved
Accrual IPSAS are based on International Financial Reporting Standards (IFRS), where the requirements of these standards are applicable to the public sector and expand on them to tackle public sector-specific financial reporting issues. More and more central governments are seeking to learn from each other’s experiences, and this becomes easier when common international accounting standards are being followed.
In the context of the Arab League member states, a number of Arab central governments officially announced their implementation of accrual accounting IPSAS.
Cash to accrual basis IPSAS or cash basis IPSAS conversion
Deloitte & Touche (M.E.) carries out IPSAS implementation in four phases – Current State Assessment, Gap Analysis, Implementation Plan and Conversion which includes the following:
Current State Assessment and Gap Analysis
We develop a comprehensive gap analysis report based on the current state assessment carried out. The gap analysis report details the central government’s current accounting policy, differences between IPSAS and current accounting policies, training requirements, amendments to legal framework and system changes required to accommodate the adoption of IPSAS.
The plan is built based on the prioritization and organization of initiatives over a timeline. These initiatives are meant to tackle the gaps identified during the Gap Analysis. The IPSAS Transition Plan will therefore identify and prioritize key initiatives needed to complete IPSAS accrual or cash basis accounting implementation and will provide a roadmap and timeline for the implementation.
The Conversion includes preparation and passing of one-time cash to accrual accounting adjustment entries on opening balances, assisting management in reconciliation and preparation of the balances for year-end financial statements reporting, at the same time ensuring adequate transfer of knowledge to finance team members.
As part of the IPSAS conversion, we can establish or improve existing accounting policies and chart of accounts for central governments in accordance with IPSAS; having served a number of key government clients with this across the Middle East.
Processes, systems and controls
We also help central government to improve and/or implement processes, systems and controls to enable accrual accounting in accordance with IPSAS.
As part of our IPSAS service solution, we provide advise to central governments and agencies and not-for-profit organisations on IPSAS implementation, technical accounting advise, trainings and workshops and an International certification in collaboration with the ACCA.