International Public Sector Accounting Standards Board IPSASB LongTerm

International Public Sector Accounting Standards Board (IPSASB) Long-Term Fiscal Sustainability Reporting Ian Carruthers: UK Technical Advisor John Stanford: IPSASB Staff

IFAC IPSASB Overview • • Rationale and objectives Relationship with other IPSASB projects Project scope Projects/pronouncements of other standard setters Existing reporting of long-term fiscal sustainability Key issues Key project milestones & outputs 2

IFAC IPSASB Rationale and objectives • Inability of financial statements to satisfy all information needs • Right to tax not accepted as an asset in accrual reporting • Need for complementary information not constrained by accrual principles 3

IFAC IPSASB Relationship with other IPSASB projects • Social benefits • Conceptual framework • MD&A/Management commentary /Narrative reporting 4

IFAC IPSASB Project scope • Reporting of long-term fiscal sustainability projections not the mechanics of preparation • Project will examine whether scope should embrace: – All governmental programs – Certain specified programs such as contributory programs or social insurance programs – All public sector entities and levels of government • Scope does not include environmental sustainability directly but does acknowledge impact on long-term fiscal sustainability 5

IFAC IPSASB Projects/pronouncements of standard setters • US FASAB Standard, SFFAS 17 and Development of Standard for broader reporting of long-term fiscal sustainability • Canadian PSAB existing guidance (and updating project) on indicators of financial condition • US GASB Project on economic condition 6

IFAC IPSASB Existing reporting of long-term fiscal sustainability • European Commission: Comprehensive 4 Yearly Assessment of Member-State Public Finances • US Federal Level Financial Report: Statement of Social Insurance • New Zealand: Report on Long-Term Fiscal Position • Australian Commonwealth: Intergenerational Reports • Canada Federal : Sustainable Development Strategy • United Kingdom: Long-Term Public Finance Report LET US KNOW WHAT ELSE IS AVAILABLE 7

IFAC IPSASB Key Issues • • • Definitions Status and nature of outputs Reporting entity for long-term fiscal sustainability reporting What should be reported in the general purpose financial statements? Regularity of reporting Time horizons Assumptions and sensitivity of assumptions Tensions with current legal frameworks Approach to discretionary programs 8

IFAC IPSASB Key Project Milestones & Outputs • • • February/March 2008: Finalization of project brief March 2008: Creation of Task Force March 2009: Publication of Consultation Paper October 2009: Agreement of approach for second phase July 2010: Issuance of Exposure Draft of Standard and/or Guidance • June 2011: Approval of Standard and/or Guidance 9