International Public Sector Accounting Standards Board (IPSASB) Long-Term Fiscal Sustainability Reporting Ian Carruthers: UK Technical Advisor John Stanford: IPSASB Staff

IFAC IPSASB 2 Overview Rationale and objectivesRationale and objectives Relationship with other IPSASB projectsRelationship with other IPSASB projects Project scopeProject scope Projects/pronouncements of other standard settersProjects/pronouncements of other standard setters Existing reporting of long-term fiscal sustainabilityExisting reporting of long-term fiscal sustainability Key issuesKey issues Key project milestones & outputsKey project milestones & outputs

IFAC IPSASB 3 Rationale and objectives Inability of financial statements to satisfy all information needsInability of financial statements to satisfy all information needs Right to tax not accepted as an asset in accrual reportingRight to tax not accepted as an asset in accrual reporting Need for complementary information not constrained by accrual principlesNeed for complementary information not constrained by accrual principles

IFAC IPSASB 4 Relationship with other IPSASB projects Social benefitsSocial benefits Conceptual frameworkConceptual framework MD&A/Management commentary /Narrative reportingMD&A/Management commentary /Narrative reporting

IFAC IPSASB 5 Project scope Reporting of long-term fiscal sustainability projections not the mechanics of preparationReporting of long-term fiscal sustainability projections not the mechanics of preparation Project will examine whether scope should embrace:Project will examine whether scope should embrace: –All governmental programs –Certain specified programs such as contributory programs or social insurance programs –All public sector entities and levels of government Scope does not include environmental sustainability directly but does acknowledge impact on long-term fiscal sustainabilityScope does not include environmental sustainability directly but does acknowledge impact on long-term fiscal sustainability

IFAC IPSASB 6 Projects/pronouncements of standard setters US FASAB Standard, SFFAS 17 and Development of Standard for broader reporting of long-term fiscal sustainabilityUS FASAB Standard, SFFAS 17 and Development of Standard for broader reporting of long-term fiscal sustainability Canadian PSAB existing guidance (and updating project) on indicators of financial conditionCanadian PSAB existing guidance (and updating project) on indicators of financial condition US GASB Project on economic conditionUS GASB Project on economic condition

IFAC IPSASB 7 Existing reporting of long-term fiscal sustainability European Commission: Comprehensive 4 Yearly Assessment of Member-State Public FinancesEuropean Commission: Comprehensive 4 Yearly Assessment of Member-State Public Finances US Federal Level Financial Report: Statement of Social InsuranceUS Federal Level Financial Report: Statement of Social Insurance New Zealand: Report on Long-Term Fiscal PositionNew Zealand: Report on Long-Term Fiscal Position Australian Commonwealth: Intergenerational ReportsAustralian Commonwealth: Intergenerational Reports Canada Federal : Sustainable Development StrategyCanada Federal : Sustainable Development Strategy United Kingdom: Long-Term Public Finance ReportUnited Kingdom: Long-Term Public Finance Report LET US KNOW WHAT ELSE IS AVAILABLE

IFAC IPSASB 8 Key Issues DefinitionsDefinitions Status and nature of outputsStatus and nature of outputs Reporting entity for long-term fiscal sustainability reportingReporting entity for long-term fiscal sustainability reporting What should be reported in the general purpose financial statements?What should be reported in the general purpose financial statements? Regularity of reportingRegularity of reporting Time horizonsTime horizons Assumptions and sensitivity of assumptionsAssumptions and sensitivity of assumptions Tensions with current legal frameworksTensions with current legal frameworks Approach to discretionary programsApproach to discretionary programs

IFAC IPSASB 9 Key Project Milestones & Outputs February/March 2008: Finalization of project briefFebruary/March 2008: Finalization of project brief March 2008: Creation of Task ForceMarch 2008: Creation of Task Force March 2009: Publication of Consultation PaperMarch 2009: Publication of Consultation Paper October 2009: Agreement of approach for second phaseOctober 2009: Agreement of approach for second phase July 2010: Issuance of Exposure Draft of Standard and/or GuidanceJuly 2010: Issuance of Exposure Draft of Standard and/or Guidance June 2011: Approval of Standard and/or GuidanceJune 2011: Approval of Standard and/or Guidance