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
  • 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
  • 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