The International Public Sector Accounting Standards Board (IPSASB) has issued guidelines on public sector long-term fiscal sustainability reports.
IPSASB said due to the volatility of the world’s financial markets, financial statements alone cannot provide all the information necessary to enable citizens, investors and other users to evaluate the long-term fiscal sustainability of governments and public sector entities.
The Exposure Draft (ED) 46, Recommended Practice Guideline explains how to supplement financial statements with projections of inflows and outflows and complementary information on an entity’s projected long-term fiscal sustainability.
The ED also suggests that entities may be able to draw on projections that are already being made by other bodies thus ensuring a cost-effective approach.
“ED 46 aims to provide straightforward guidance to entities to ensure that information on their fiscal sustainability is complete, relevant, and understandable,” IPSASB chairman Andreas Bergmann said.
The IPSASB project is being overseen by a Task Force with a wide membership, including standard setters, governments, and supranational organisations such as the International Monetary Fund, the Organisation for Economic Co-operation and Eurostat, the statistical office of the European Union.