Presentation on theme: "Towards European Public Sector Accounting Standards (EPSAS)"— Presentation transcript:
1 Towards European Public Sector Accounting Standards (EPSAS) Norwegian association for local government auditing Brussels, 15 January 2015Towards European Public Sector Accounting Standards (EPSAS)Alexandre Makaronidis Head of Unit Task Force EPSAS, European Commission - Eurostat
2 Why harmonised accruals? From an EU perspective the wide range of public sector accounting standards result in a lack of:transparency, andcomparabilityin 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.
4 EY Study (2012) public sector accounting standards in the EU
5 Background: 2012 to mid-2013 Study on the suitability of IPSAS: Retrospective Public consultation on IPSASReport on suitability of IPSASIPSAS cannot easily be implemented in EU Member States as it stands currentlyIPSAS would be a suitable starting point for the future development of a set of European Public Sector Accounting StandardsBudgetary Frameworks Directive"… the Commission shall assess the suitability of the International Public Sector Accounting Standards for the Member States"Task Force IPSASEPSAS ConferenceE&Y study on public sector accounting and auditing practices
6 Public consultation – suitability of IPSAS Are IPSASs suitable for implementation in the EU Member States?YesNoPartlyUncertainTotalProfessional Association/Standard Setter123116Ministry of Finance/Treasury410Private individual6Regional Audit Office89National Audit Office2Firm of Auditors or Accountants5Statistical OfficeRegional association or authoritySocial security/Pension FundInternational OrganisationNational authorityTOTAL26192168% share382831NB: "NO" replies were concentrated - from a small number of MSs (DE, FR, AT, NL, PL)
7 Taking forward EPSAS: mid-2013 - onwards Outputs from:TF EPSAS GovernanceCommission CommunicationTF EPSAS StandardsImpact AssessmentPublic consultation on EPSAS governanceLegislative proposalPwC study on behalf of Eurostat
12 PwC Study on behalf of Eurostat (2014) Technical analysis of IPSAS confirms:The general technical suitability of existing IPSASClassification of IPSASs in 3 categories for the future effective and efficient work on EPSASHigh level cost estimate of EPSAS implementationPotential costs between 0.01% and 0.05 % of GDPBenefits would outweigh costs
13 PwC Study on behalf of Eurostat (2014) Extrapolated costs at EU level spread over the reform periodScenario 1 – Adaptation of all existing IT systemsbetween 1.2 billion and 2.1 billion EURScenario 2 – New IT systems for all entities with low IT maturitybetween 1.8 billion and 6.9 billion EURIPSAS report (2013): costs of % of GDPPwC Study (2014): costs of % of GDPNB: To interpret with due care, taking into account the inherent limitations of such extrapolations.
14 European Commission (Eurostat) Task Force EPSAS: http://ec. europa