2014年-IMF国际货币组织全球_Iceland_Technical_Assistance_Report_63页_919kb

Summary of the Technical Assistance Report: IPSAS in Iceland – Towards Enhanced Fiscal Transparency

Core Content

This report outlines the findings and recommendations of a technical assistance mission by the IMF Fiscal Affairs Department (FAD) to Iceland, aimed at aligning the country's public sector accounting and reporting practices with International Public Sector Accounting Standards (IPSAS). The mission was conducted in November 2013 and focused on identifying gaps between the Government of Iceland's (GoI) current accounting framework and IPSAS, as well as proposing a strategy for its implementation.

Main Objectives

• To assist the GoI in reforming its legal framework for budgeting through the introduction of a new Organic Budget Law (OBL).
• To ensure that fiscal reports and financial statements are prepared in accordance with internationally accepted standards, particularly IPSAS and GFSM 2001.
• To improve fiscal transparency and accountability by adopting a more comprehensive and accurate accounting framework.

Key Findings and Recommendations

I. Introduction and Background

• Following the 2008 economic crisis, Iceland has initiated a series of reforms to improve fiscal management, including the introduction of a new Organic Budget Law.
• The current financial reporting framework is based on the Financial Reporting Act (FRA) of 1997 and includes operating statements, balance sheets, and cash flow statements.
• Iceland has been a pioneer in introducing accrual concepts in budgeting, though the framework is not fully aligned with international standards.

II. Gap Analysis Between GoI Accounting Policies and IPSAS

A. Consolidated Financial Statements

• The GoI currently presents financial statements for the budget sector only, excluding many government-controlled entities.
• IPSAS requires consolidated financial statements for all entities controlled by the government, including those in classes A, B, and C.
• The mission recommends identifying and classifying entities based on control, as defined by IPSAS 6, to ensure comprehensive consolidation.

B. Investments in Controlled Entities and Associates

• The GoI should account for its controlled entities and associates at cost in its separate financial statements to avoid gains and losses appearing in the operating statement.
• In consolidated financial statements, associates should be accounted for using the equity method to ensure accurate reflection of ownership and control.

C. Property, Plant, and Equipment (PPE)

• Under the current framework, PPE are treated as expenses and written off in the year of acquisition.
• IPSAS requires the recognition of PPE as assets, significantly increasing the reported value of government assets.
• Iceland has existing asset registers that can serve as a solid foundation for IPSAS-based asset valuation.

D. Intangible Assets

• The current framework does not account for intangible assets, which IPSAS requires to be recognized and measured appropriately.
• This represents a gap that needs to be addressed to enhance transparency and completeness of financial statements.

E. Leases

• The GoI currently follows a cash-based approach to lease accounting.
• IPSAS requires the recognition of lease liabilities and assets on the balance sheet, which would improve the accuracy of financial position reporting.

F. Inventories

• The current framework does not account for inventories, while IPSAS requires them to be recognized and measured at cost.
• This is a key area for improvement to reflect the true financial position of the government.

G. Employee Benefits

• The GoI's current practices do not fully align with IPSAS requirements for employee benefits.
• IPSAS mandates the recognition of liabilities for employee benefits, which would improve the transparency of long-term obligations.

H. Financial Instruments

• The current framework does not fully comply with IPSAS requirements for financial instruments.
• Revisions to the recognition and measurement of pension and debt liabilities are required.
• Detailed accounting and disclosure of financial instruments, including credit and interest rate risks, should be introduced.

I. Public Debt Valuation

• Public debt should be valued at amortized cost using the effective interest rate method, as required by IPSAS.
• This approach ensures that the financial statements reflect the true value of debt obligations.

J. Presentation of Financial Statements

• The current cash flow statement is prepared using the indirect method, which does not provide detailed operating information.
• The direct method is recommended to enhance transparency and provide a clearer picture of actual cash flows.

K. Offsetting

• The mission emphasizes the need to eliminate offsetting in financial statements to ensure a true and fair view of the government's financial position.

L. Cash Flow Statement

• The direct method is recommended to improve the clarity and usefulness of the cash flow statement.

M. Events after the Reporting Date

• IPSAS requires the recognition of events after the reporting date, including those that provide additional information for users of financial statements.

N. Segment Reporting

• Segment reporting should be introduced to provide a more detailed view of the government's financial activities across different sectors.

O. Provisions, Contingent Liabilities, and Contingent Assets

• The GoI should improve the recognition and disclosure of provisions, contingent liabilities, and contingent assets to enhance transparency.

P. Related Party Disclosures

• Related party disclosures should be strengthened to provide greater transparency in financial reporting.

Q. Budget Information in Financial Statements

• Budget information should be included in financial statements, with explanations of differences between original and final budgets.

R. Service Concession Arrangements

• The GoI should account for service concession arrangements in accordance with IPSAS, recognizing assets and liabilities appropriately.

General Improvements to Financial Statements

• The analysis of expenses should be enhanced to provide a clearer picture of the government's financial activities.
• Functional classification should be introduced to improve the understanding of how public funds are used.
• The operating statement should be harmonized to display both net lending/borrowing and operating results.

Alignment of Budget, Financial Statements, and Statistical Reports

• The budget should include depreciation as an expense but not as an appropriation.
• A phased implementation approach is recommended to ensure a smooth transition to IPSAS.
• The mission recommends the adoption of a harmonized presentation of budget and financial statements.

Audit

• The GoI should adopt audit standards in line with International Standards of Supreme Audit Institutions (ISSAI).
• The audit process should be reviewed and strengthened to ensure compliance with IPSAS.

Strategy and Plan for Implementation

• A phased approach is recommended, with the preparation of opening balance sheets as of January 1, 2014.
• Trial financial statements for 2014 and 2015 should be prepared alongside existing reports.
• The implementation plan should include training and communication strategies to support the transition.
• The need for a more sophisticated system to support consolidated reporting should be assessed.

Tables and Key Recommendations

• Table 1 summarizes the key recommendations and indicative implementation timelines.
• The implementation is expected to be completed in phases from 2014 to 2017.

Conclusion

The report highlights the importance of adopting IPSAS to enhance fiscal transparency and accountability in Iceland. It provides a comprehensive gap analysis and outlines a detailed implementation strategy, emphasizing the need for improved asset recognition, financial statement presentation, and alignment with international standards.