The International Public Sector Accounting Standards Board writes accrual accounting standards for governments and other public-sector entities. The standards tell a ministry how to recognize revenue, debt, and assets. A government adopts them, often with a local adjustment, and its own auditors then test the accounts.
The board is part of the International Federation of Accountants (IFAC). The standards are for the public sector. They are not the standards a commercial company follows unless a government has chosen them for a public entity.
What the Standards Are For
- Accrual reporting. Transactions are recorded when the obligation arises, not only when cash moves.
- Comparable accounts. Two governments that adopt the standards can be read against the same definitions.
- A local decision. Adoption is up to the government or its standard setter.
Public-Sector Board and a Commercial Standard
| Compared | These Standards | Commercial Accounting Standards |
| Who reports under them | Governments and public entities | Companies |
| Who writes them | This board | A different board |
| Cash or accrual | Accrual is the model | Accrual is the model |