Adoption of IPSAS to enhance financial reporting - Controller

The Controller and Accountant General’s Department CADG), Thursday organized a sensitization seminar for economic and budget officers on the implementation and adoption of the International Public Sector Accounting Standards (IPSAS).

The implementation in Ghana is to further strengthen the Public Financial Management (PFM) reform strategy and the use of the Ghana Integrated Financial Management Information System (GIFMIS).

The Controller, Accountant General, Mr. Kwasi Kwaning-Bosompem, at the Seminar, said Ghana’s public accounts had been prepared in compliance with the generally accepted accounting principles, in accordance with financial laws such as FAA 1979, Financial Administrations Act 2003, on a cash basis.

The CAGD realizing these shortcomings on cash-based accounting, the Ministry of Finance approved the adoption and implementation of IPSAS which ensures public accounts prepared on an accrual basis.

He said the IPSAS would aid in the interpretation and understanding of financial statements, which would improve the fiscal transparency and accountability in the public accounts of Ghana.

The implementation would improve the quality, comprehensiveness and international comparability of financial information reported by public sector entities to provide credibility, assurance and acceptance in financial reporting.

“Accrual basis IPSAS when implemented, will lead to the matching of revenue with expenditure in the period it relates, to give an accurate assessment on the financial performance of the government”, he said.

He said the economic and budget officers who plan, prepare and see the execution of budgets should play a very important role in the implementation of the IPSASs in the MDAs, and also partake in the change in management processes.

The IPSAS is a set of standards issued by IPSAS Board of International Federation of Accountants (IFAC) to regulate and guide the preparation, presentation and disclosure of general purpose financial statements in the public sector across the world.

The IPSAS was adopted in 2014 in Ghana, which was approved by the Ministry of Finance, and the CAGD was assigned to take responsibility for the implementation process to aid in adequate financial reporting.