Public Sector Accounting Standards!!!

Dear reader...

This post is about IPSAS (International Public Sector Accounting Standards).
International Public Sector Accounting Standards (IPSAS) are a set of accounting standards issued by the IPSAS Board for use by public sector entities around the world in the preparation of financial statements. These standards are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The need for these standards was provoked to make the financial reports and financial statements of an entity internationally understandable, relevant, reliable. These standards are followed by the public sector entities to let the Management and External users about the position and performance of the entity. These standards enables the Donor or the Investor to make decisions.

IPSAS focuses on Accrual Accounting System rather than Cash Accounting System.  IPSAS aims to produce better information of the resource allocation through improving the quality of financial reports.