The proposed IPSAS on measurement for public sector financial reporting—recycling or reiteration?

This paper analyses the value of the IPSASB’s approach in the consultation paper on the measurement of assets and liabilities in public sector financial reporting. It shows that reference to extant standards results in a patchwork of data that may be more confusing than guiding. The paper concludes that if the proposed Exposure Draft purports to consolidate accounting theory on measurement for the public sector, it should refer to public sector accounting practices rather than concepts that have evolved from private
sector accounting practices. Such an approach would strengthen accountability and transparency of the public sector because financial reporting would be compliant with a
relevant suite of standards.