IFAC urges G 20 to improve public sector reporting

April 18, 2012

The International Federation of Accountants
(IFAC) has urged the G20 to take action against inconsistent and
unreliable public sector financial reporting.

The issue was addressed in a letter to the G20
deputies and Finance Ministers at their April 2012 meeting in
Mexico, in which IFAC recommends the G20:

To encourage the Financial Stability Board (FSB) to consider
institutional changes which are needed in public sector financial
management to protect the public and investors in government
bonds;
To foster the establishment of a working group within the FSB
architecture, which is specifically tasked with examining enhanced
public sector financial reporting, transparency and
accountability;
To facilitate the adoption of accrual-based accounting by
governments and public sector institution; and,
That the G20 encourages FSB to include International Public
Sector Accounting Standards as a set of standards key for sound
financial systems and deserving of timely implementation.

IFAC chief executive Ian Ball said the
sovereign debt crisis has given rise to a significant number of
policy developments at an international level but this issue has
yet to be adequately addressed.

“The use of international public sector
standards by governments worldwide will improve the quality of
financial information reported by public entities, which is
critical for investors, taxpayers, and the general public,” Ball
said.