Etpu - the United Nations

* The present circular will be in effect until further notice.
Information circular*
To: Members of the staff From: The Assistant Secretary-General for Programme Planning, Budget
and Accounts, Controller Subject: United Nations policy framework for International Public
Sector Accounting Standards 1. The purpose of the present circular is to inform staff
members of the United Nations policy framework for International
Public Sector Accounting Standards (IPSAS), which outlines the
accounting policies that the Secretariat is implementing in order
to produce IPSAS-compliant financial statements and to support the
realization of the benefits associated with IPSAS. The framework
is designed to support understanding of IPSAS principles and
illustrate how the Standards are being applied at the United
Nations. 2. The Secretary-General, in his report of 12 May 2006
(A/60/846/Add.3), sought the approval of IPSAS adoption by the
United Nations as part of the system-wide adoption of the
Standards. On 7 July 2006, the General Assembly, in its resolution
60/283, approved the adoption of IPSAS for the United Nations. 3. The adoption of IPSAS by the Organization necessitated
revisions to the Financial Regulations and Rules of the United
Nations. The General Assembly, in its resolution 67/246, adopted
the revised Financial Regulations. The Secretary-General
promulgated a revised edition of the Financial Regulations and
Rules for IPSAS adoption in Secretary-General's bulletin
ST/SGB/2013/4, effective 1 July 2013. 4. In the revised Financial Regulations and Rules, financial
regulation 6.1 states, "The financial statements shall be prepared
annually in United States dollars in accordance with the present
Regulations and Rules, decisions of the appropriate legislative
bodies and the International Public Sector Accounting Standards."
Accordingly, the United Nations policy framework for IPSAS
outlines the policies that will ensure that the United Nations
produces IPSAS-compliant financial statements, in accordance with
financial regulation 6.1. For peacekeeping operations, the first
set of IPSAS-compliant financial statements is scheduled to be
issued for the fiscal year 1 July 2013 to 30 June 2014; for all
other reporting entities of the Secretariat, the first set is
scheduled to be issued for the year 1 January to 31 December 2014. 5. The United Nations policy framework for IPSAS outlines the
standards that are applicable to the United Nations and then gives
a summary of each standard, details of the standard, the United
Nations disclosure requirements for the standard and policy
guidance for the standard. 6. The text of the United Nations policy framework for IPSAS is
set out in the annex to the present circular. The annex reproduces
the version of the framework applicable at the date of issuance of
the circular. The framework is subject to amendments and revisions
from time to time. An updated version of the framework will be
made available only on the intranet at
http://secap472.un.org/hr_handbook/. Staff are therefore reminded
of the need to review and refer to the updated version on the
intranet. Annex*
* The present annex sets out the version of the United Nations
policy framework for International Public Sector Accounting
Standards (IPSAS) applicable at the date of issuance of
information circular ST/IC/2013/36. The framework is subject to
amendments and revisions from time to time. An updated version of
the framework will be made available only on the intranet at
http://secap472.un.org/hr_handbook/. Staff are therefore reminded
of the need to review and refer to the updated version on the
intranet.
United Nations policy framework for International Public Sector
Accounting Standards
Contents | | | |Pag|
| | | |e |
| Overview |8 |
| Introduction |10 |
| The decision to adopt IPSAS |10 |
| Impact and benefits of IPSAS |11 |
| The International Public Sector Accounting Standards Board |12 |
| Overview of IPSAS standards |13 |
| Format of the United Nations policy framework for IPSAS |17 |
| General principles of accounting under IPSAS |17 |
| Presentation and consolidation |19 |
|IPSAS 1, Presentation of financial statements |19 |
|Summary |19 |
|Standard |19 |
|United Nations disclosure |21 |
|Policy guidance |22 |
|IPSAS 2, Cash flow statements |22 |
|Summary |22 |
|Standard |22 |
|United Nations disclosure |24 |
|Policy guidance |24 |
|IPSAS 24, Presentation of budget information in financial statements |24 |
|Summary |24 |
|Standard |25 |
|United Nations disclosure |26 |
|Policy guidance |26 |
|IPSAS 3, Accounting policies, changes in accounting estimates and errors|27 |
|Summary |27 |
|Standard |27 |
|United Nations disclosure |29 |
|Policy guidance |30 |
|IPSAS 6, Consolidated and separate financial statements |30 |
|Summary |30 |
|Standard |30 |
|United Nations disclosure |31 |
|Policy guidance |31 |
|IPSAS 7, Investments in associates |32 |
|Summary |32 |
|Standard |32 |
|Policy guidance |32 |
|IPSAS 8, Interests in joint ventures |32 |
|Summary |32 |
|Standard |32 |
| Revenue: exchange and non-exchange transactions |34 |
|IPSAS 23, Revenue from non-exchange transactions (taxes and transfers) |34 |
|Summary |34 |
|Standard |35 |
|United Nations disclosure |37 |
|Policy guidance |38 |
|Revenue relating to pledges made in prior years; project assets; |41 |
|implementing partner transactions | |
|Transitional provisions |42 |
|IPSAS 9, Revenue from exchange transactions |42 |
|Summary |42 |
|Standard |43 |
|United Nations disclosure |44 |
|Policy guidance |44 |
| Expenses and liabilities |44 |
|Expense recognition |44 |
| Summary |44 |
| IPSAS approach |45 |
| United Nations disclosure |49 |
| Policy guidance |50 |
|IPSAS 19, Provisions, contingent liabilities and contingent assets |51 |
| Summary |51 |
| Standard |51 |
| Policy guidance |55 |
|IPSAS 25, Employee benefits |56 |
|