International Public Sector Accounting Standards Board (IPSASB)
The IPSASB is an independent standard-setting body operating under the auspices of the International Federation of Accountants (IFAC).
- Role: It develops and issues International Public Sector Accounting Standards (IPSAS). These high-quality financial reporting standards are designed for use by public sector entities worldwide, excluding commercial state enterprises.
- Global Trajectory: IPSAS has become the international benchmark for public accounting reform. It is widely adopted by multilateral organizations (e.g., the United Nations, OECD, NATO, Interpol) and is implemented or used as a baseline by nations across Europe, Africa, Latin America, and Asia.
Governmental Accounting Standards Board (GASB) – USA
In the United States, accounting standards are strictly split between corporate and government bodies. The GASB is an independent, private-sector organization overseen by the Financial Accounting Foundation (FAF).
- Role: GASB establishes financial accounting and reporting standards for state and local governments within the United States.
- Authority: While GASB standards do not apply to the federal government, they carry statutory authority for US states, counties, and cities. Compliance with GASB statement updates is often required by state laws and bond rating agencies.
Federal Accounting Standards Advisory Board (FASAB) – USA
The FASAB is the specialized body responsible for the US federal tier of government.
- Role: It develops accounting standards for the United States Government as a whole, as well as its federal executive departments and agencies (e.g., Department of Defense, Department of the Treasury).
- Structure: FASAB was established jointly by the Government Accountability Office (GAO), the Department of the Treasury, and the Office of Management and Budget (OMB), which collectively review and adopt its recommendations.
European Public Sector Accounting Standards (EPSAS) Initiative
To improve fiscal transparency across the European Union, the European Commission initiated the EPSAS project.
- Driver: The Eurozone debt crisis highlighted significant inconsistencies in how EU member states reported public financial data, making deficit monitoring difficult.
- Objective: EPSAS aims to build a harmonized set of accrual-based accounting standards specifically tailored for EU member states. These standards use IPSAS as a primary conceptual baseline but adapt them to fit the specific regulatory, statistical, and institutional needs of the European Union.
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