IPSAS Training Manual 2024

These flashcards cover critical concepts, definitions, and important IPSAS training details from the lecture notes.

What is the objective of IPSAS training for CAGD staff?

To build technical knowledge for interpreting and applying IPSAS.

What are the expected outcomes of the IPSAS training?

Participants will be able to explain why Ghana adopted IPSAS, interpret IPSAS standards, apply principles to financial reporting, measure public sector transactions, and manage implementation challenges.

What is IPSAS?

IPSAS stands for International Public Sector Accounting Standards, providing a framework for public sector financial reporting.

What are the benefits of adopting IPSAS?

Increased accountability and transparency, improved financial management, enhanced access to capital, and global integration and compliance.

What is the key principle of IPSAS regarding financial reporting?

To ensure that financial information is relevant, reliable, comparable, and understandable.

What does the term 'financial statement' refer to?

A structured representation of the financial position and financial performance of an entity.

What is 'accrual basis' in IPSAS?

Recognizing events in the financial statements when they occur rather than only when cash transactions happen.

What does the term 'recognition' mean in accounting?

Incorporating an item into the financial statements when it meets certain criteria.

How should public sector entities measure inventory according to IPSAS?

At the lower of cost and net realizable value.

What treatment should a service concession asset receive in IPSAS?

It should be recognized and measured at its fair value when the entity controls the asset.

When should an impairment loss be recognized according to IPSAS?

When the recoverable amount of an asset is less than its carrying amount.

What does IPSAS require concerning disclosures in financial statements?

Entities must disclose the accounting policies adopted and significant judgments made.

How are changes in accounting policies treated under IPSAS?

They must be applied retrospectively unless specific transitional provisions apply.

What is the difference between a provision and a contingent liability?

A provision is a liability that is probable and measurable, while a contingent liability is a possible obligation based on uncertain future events.

What must be included in the disclosures of employee benefits according to IPSAS?

The amount of expense recognized, the nature of benefits provided, and any significant risks associated with the plans.

What is the role of management in IPSAS implementation?

To ensure compliance with IPSAS and to make decisions about the financial reporting framework.

What does 'financial instrument' mean in IPSAS?

Any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another.

What is IPSAS 1 about?

It focuses on the presentation of financial statements for public sector entities.

What accounting methods can be used for revenue recognition under IPSAS?

Revenue can be recognized based on the accrual basis or the cash basis, depending on the type of transaction.

What is required for disclosures of related party transactions in IPSAS?

An entity must disclose relationships, transactions, and outstanding balances with related parties.

In the context of IPSAS, what is 'section reporting'?

The reporting of financial information by segments within the public sector to enhance understanding of performance.