Presentation on theme: "Eurostat Norwegian association for local government auditing Brussels, 15 January 2015 Towards European Public Sector Accounting Standards (EPSAS) Alexandre."— Presentation transcript:
eurostat Norwegian association for local government auditing Brussels, 15 January 2015 Towards European Public Sector Accounting Standards (EPSAS) Alexandre M AKARONIDIS Head of Unit Task Force EPSAS, European Commission - Eurostat
eurostat Why harmonised accruals? 2/14 From an EU perspective the wide range of public sector accounting standards result in a lack of: transparency, and comparability in the financial reporting due to non-comparable, incomplete and inconsistent primary accounting data. This impacts on both General Purpose Financial Statements and Government Finance Statistics.
eurostat EY Study (2012) public sector accounting standards in the EU 4/14
eurostat Background: 2012 to mid-2013 Study on the suitability of IPSAS: Retrospective 5/14 Budgetary Frameworks Directive "… the Commission shall assess the suitability of the International Public Sector Accounting Standards for the Member States" Public consultation on IPSAS Task Force IPSAS E&Y study on public sector accounting and auditing practices Report on suitability of IPSAS IPSAS cannot easily be implemented in EU Member States as it stands currently IPSAS would be a suitable starting point for the future development of a set of European Public Sector Accounting Standards EPSAS Conference
eurostat Public consultation – suitability of IPSAS Are IPSASs suitable for implementation in the EU Member States? NB: "NO" replies were concentrated - from a small number of MSs (DE, FR, AT, NL, PL) YesNoPartlyUncertainTotal Professional Association/Standard Setter 12 3116 Ministry of Finance/Treasury 343 10 Private individual 316 10 Regional Audit Office 81 9 National Audit Office 123 6 Firm of Auditors or Accountants 5 5 Statistical Office 2 114 Regional association or authority 21 3 Social security/Pension Fund 12 3 International Organisation 1 1 National authority 1 1 TOTAL 261921268 % share 3828313 6/14
eurostat Impact Assessment Legislative proposal Outputs from: TF EPSAS Governance Taking forward EPSAS: mid-2013 - onwards TF EPSAS Standards Public consultation on EPSAS governance PwC study on behalf of Eurostat Commission Communication 7/14
eurostat Technical analysis of IPSAS confirms: The general technical suitability of existing IPSAS Classification of IPSASs in 3 categories for the future effective and efficient work on EPSAS High level cost estimate of EPSAS implementation Potential costs between 0.01% and 0.05 % of GDP Benefits would outweigh costs 12/14 PwC Study on behalf of Eurostat (2014)
eurostat PwC Study on behalf of Eurostat (2014) 13/14 Extrapolated costs at EU level spread over the reform period Scenario 1 – Adaptation of all existing IT systems between 1.2 billion and 2.1 billion EUR Scenario 2 – New IT systems for all entities with low IT maturity between 1.8 billion and 6.9 billion EUR IPSAS report (2013):costs of 0.02-0.1% of GDP PwC Study (2014): costs of 0.01-0.05% of GDP NB: To interpret with due care, taking into account the inherent limitations of such extrapolations.
eurostat European Commission (Eurostat) Task Force EPSAS: http://ec.europa.eu/eurostat/web/government-finance- statistics/government-accounting