IPSASB looks to bridge the social benefits gap in accounting standards for the public sector

by Federica Tedeschi

The International Public Sector Accounting Standards Board (IPSASB) has released for comment an exposure draft addressing accounting for the delivery of social benefits, such as retirement, unemployment, and disability.

Current International Public Sector Accounting Standards (IPSAS) do not provide requirements or guidance on how to account for social benefits, leaving users without the information needed to assess government performance, the IPSASB said.

IPSASB Chair Ian Carruthers said: “Social benefits are a major expenditure for most governments, and the absence of an IPSAS standard for these programs is a noted gap in the Board’s literature. The proposals in [the exposure draft] will enhance accountability and transparency and improve decision making in this critical public interest area.”