GROUP 8 ASSIGNMENT

PUBLIC SECTOR ACCOUNTING

1. SAMUEL MWANIKI BE100/G/15426/21

2. MARY WAKIO BE100/G/15191/21
3. JUDY MWANGI BE100/G/6462/19
4. WEDDY MWENDE BE100/G/13353/21
5. NAOMI WAMBUA BE100/G/13352/21
6. MICHAEL WANYOIKE BE100/G/12619/21
7. IRENE MWANGI BE100/G/13348/21
8. PETER CHERUIYOT BE100/G/6561/19
9. DAVID MUTHAKA BE100/G/9897/20
10. MUTISYA SUSAN BE100/G/13744/21
11.

Briefly discuss each of the various International Public Sector Accounting Standards;

 Effective Date

 Objective

 A summary of the standard

IPSAS 1 - Presentation of Financial Statements:

Effective Date: Various dates

Objective: To prescribe the basis for presentation of general purpose financial statements.

Summary: Outlines the overall structure and content of financial statements.

IPSAS 2 - Cash Flow Statements:

Effective Date: Various dates

Objective: To prescribe the presentation of cash flow information.

Summary: Requires entities to provide information about changes in cash and cash equivalents.

IPSAS 3 - Accounting Policies, Changes in Accounting Estimates and Errors:

Effective Date: Various dates

Objective: To prescribe the criteria for selecting and changing accounting policies.

Summary: Covers the selection, application, and changes in accounting policies, as well as handling of
errors.

IPSAS 4 - The Effects of Changes in Foreign Exchange Rates:

Effective Date: Various dates

Objective: To prescribe the accounting for the effects of changes in foreign exchange rates.

Summary: Covers recognition, measurement, and presentation of foreign currency transaction.

IPSAS 5 - Borrowing Costs:

Effective Date: Various dates

Objective: To prescribe the accounting treatment of borrowing costs.

Summary: Provides guidelines for the capitalization of borrowing costs as part of the cost of qualifying
assets.

IPSAS 6 - Consolidated and Separate Financial Statements:

Effective Date: Various dates

Objective: To prescribe the preparation and presentation of consolidated financial statements.

Summary: Outlines the requirements for the preparation of consolidated financial statements when an
entity controls one or more other entities.

IPSAS 7 - Investments in Associates:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for investments in associates.

Summary: Provides guidelines for accounting for investments in associates using the equity method.

IPSAS 8 - Interests in Joint Ventures:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for interests in joint ventures.

Summary: Provides guidelines for accounting for interests in joint ventures using the equity method.

These standards form a comprehensive framework for financial reporting in the public sector, ensuring
transparency, comparability, and accountability in the presentation of financial information.

IPSAS 9 - Revenue from Exchange Transactions:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for revenue arising from exchange transactions.

Summary: Provides guidance on the recognition, measurement, and presentation of revenue from
exchange transactions.

IPSAS 10 - Financial Reporting in Hyperinflationary Economies:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for entities operating in hyperinflationary economies.

Summary: Outlines the requirements for the presentation of financial statements in hyperinflationary
economies, including restatement of financial statements in a stable measuring unit of currency.

IPSAS 11 - Construction Contracts:

Effective Date: Various dates

Objective: To prescribe the accounting treatment of construction contracts.

Summary: Provides guidance on recognition of revenue and expenses associated with construction
contracts, including measurement, presentation, and disclosure.

IPSAS 12 - Inventories:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for inventories.

Summary: Outlines the requirements for the measurement, recognition, and disclosure of inventories
held for consumption, production, or resale.

These standards cover various aspects of financial reporting and are designed to enhance the
transparency, accountability, and comparability of financial statements in the public sector.

IPSAS 13 - Leases:
Effective Date: Various dates

Objective: To prescribe the accounting treatment for leases.

Summary: Provides guidance on the classification, recognition, measurement, and disclosure of leases by
both lessees and lessors.

IPSAS 14 - Events After the Reporting Period:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for events occurring after the reporting period.

Summary: Outlines the requirements for identifying, assessing, and disclosing events that occur after the
reporting period but before the financial statements are authorized for issue.

IPSAS 15 - Financial Instruments: Disclosure and Presentation:

Effective Date: Various dates

Objective: To prescribe the disclosure and presentation requirements for financial instruments.

Summary: Provides guidance on the disclosure and presentation of financial instruments, including
classification, measurement, and disclosure requirements.

IPSAS 16 - Investment Property:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for investment property.

Summary: Outlines the recognition, measurement, presentation, and disclosure requirements for
investment property held by public sector entities.

IPSAS 17 - Property, Plant, and Equipment:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for property, plant, and equipment.

Summary: Provides guidance on recognition, measurement, depreciation, and disclosure of property,

plant, and equipment held by public sector entities.

IPSAS 18 - Segment Reporting:

Effective Date: Various dates

Objective: To prescribe the disclosure requirements for segment reporting.

Summary: Requires entities to report financial and descriptive information about operating segments to
enable users to evaluate the nature and financial effects of the business activities.

IPSAS 19 - Provisions, Contingent Liabilities, and Contingent Assets:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for provisions, contingent liabilities, and contingent
assets.

Summary: Provides guidance on recognition, measurement, and disclosure of provisions, contingent

liabilities, and contingent assets.

IPSAS 20 - Related Party Disclosures:

Effective Date: Various dates

Objective: To prescribe the disclosure requirements for related party relationships and transactions.

Summary: Requires entities to disclose related party relationships and transactions to enable users to
evaluate the potential impact on the entity's financial position and performance.

IPSAS 21 - Impairment of Non-Cash-Generating Assets:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for impairment of non-cash-generating assets.

Summary: Provides guidance on recognition, measurement, and disclosure of impairment losses related
to non-cash-generating assets.

IPSAS 22 - Disclosure of Financial Information about the General Government Sector:

Effective Date: Various dates

Objective: To prescribe the disclosure requirements for financial information about the general
government sector.

Summary: Requires entities to disclose information about their financial position, performance, and cash
flows relating to the general government sector.

IPSAS 23 - Revenue from Non-Exchange Transactions (Taxes and Transfers):

Effective Date: Various dates

Objective: To prescribe the accounting treatment for revenue from non-exchange transactions, such as
taxes and transfers.

Summary: Provides guidance on recognition, measurement, and disclosure of revenue from non-
exchange transactions.

IPSAS 24 - Presentation of Budget Information in Financial Statements:

Effective Date: Various dates

Objective: To prescribe the presentation of budget information in financial statements.

Summary: Requires entities to present budget information in their financial statements to facilitate
comparison between budgeted and actual amounts.

IPSAS 25 - Employee Benefits:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for employee benefits.

Summary: Provides guidance on recognition, measurement, and disclosure of employee benefits,

including pensions, post-employment benefits, and other long-term employee benefits.

IPSAS 26 - Impairment of Cash-Generating Assets:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for impairment of cash-generating assets.

Summary: Provides guidance on recognition, measurement, and disclosure of impairment losses related
to cash-generating assets.

IPSAS 27 - Agriculture:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for agricultural activity.

Summary: Provides guidance on recognition, measurement, and disclosure of agricultural activity,

including biological assets and agricultural produce.

IPSAS 28 - Financial Instruments: Presentation:

Effective Date: Various dates

Objective: To prescribe the presentation requirements for financial instruments.

Summary: Provides guidance on the presentation of financial instruments in financial statements,

including classification and disclosure requirements.

These standards cover a broad range of accounting topics relevant to public sector entities, ensuring
consistency, transparency, and comparability in financial reporting practices.

IPSAS 29 - Financial Instruments: Recognition and Measurement:

Effective Date: Various dates

Objective: To prescribe the recognition and measurement requirements for financial instruments.

Summary: Provides guidance on the recognition, initial measurement, subsequent measurement, and
derecognition of financial instruments.

IPSAS 30 - Financial Instruments: Disclosures:

Effective Date: Various dates

Objective: To prescribe the disclosure requirements for financial instruments.

Summary: Provides guidance on the disclosure of information about financial instruments in the
financial statements to enable users to evaluate the nature and extent of risks arising from financial
instruments.
IPSAS 31 - Intangible Assets:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for intangible assets.

Summary: Provides guidance on recognition, measurement, and disclosure of intangible assets, including
research and development costs, patents, copyrights, and trademarks.

IPSAS 32 - Service Concession Arrangements: Grantor:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for service concession arrangements from the grantor's
perspective.

Summary: Provides guidance on recognition, measurement, and disclosure of service concession

arrangements where the grantor controls or regulates the services provided.

IPSAS 33 - First-time Adoption of Accrual Basis International Public Sector Accounting Standards:

Effective Date: Various dates

Objective: To prescribe the procedures for first-time adoption of accrual basis IPSAS.

Summary: Provides guidance on the transition from cash basis to accrual basis accounting, including
recognition, measurement, and disclosure requirements for the first set of accrual-based financial
statements.

IPSAS 34 - Separate Financial Statements:

Effective Date: Various dates

Objective: To prescribe the preparation and presentation of separate financial statements.

Summary: Provides guidance on the preparation and presentation of financial statements by an entity
that does not have subsidiaries, associates, or interests in joint ventures.

IPSAS 35 - Consolidated Financial Statements and Accounting for Controlled Entities:

Effective Date: Various dates

Objective: To prescribe the preparation and presentation of consolidated financial statements.

Summary: Provides guidance on the preparation and presentation of consolidated financial statements
for an entity that controls one or more other entities.

IPSAS 36 - Investments in Associates and Joint Ventures:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for investments in associates and joint ventures.

Summary: Provides guidance on the recognition, measurement, and disclosure of investments in

associates and joint ventures using the equity method.
IPSAS 37 - Joint Arrangements:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for joint arrangements.

Summary: Provides guidance on the recognition, measurement, and disclosure of joint arrangements,
including joint operations and joint ventures.

IPSAS 38 - Disclosure of Interests in Other Entities:

Effective Date: Various dates

Objective: To prescribe the disclosure requirements for interests in other entities.

Summary: Requires entities to disclose information about their interests in subsidiaries, associates, joint
ventures, and other entities to enable users to evaluate the nature and extent of those interests.

IPSAS 39 - Public-Private Partnerships:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for public-private partnerships (PPPs).

Summary: Provides guidance on recognition, measurement, and disclosure of assets, liabilities, revenue,
and expenses arising from PPP arrangements.

IPSAS 40 - Public Sector Combinations:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for combinations involving public sector entities.

Summary: Provides guidance on recognition, IPSAS 41 - Financial Instruments:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for financial instruments.

Summary: Provides comprehensive guidance on the recognition, measurement, presentation, and

disclosure of financial instruments, including financial assets, financial liabilities, and derivatives.

IPSAS 42 - Social Benefits:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for social benefits.

Summary: Provides guidance on recognition, measurement, and disclosure of social benefits, including
pensions, unemployment benefits, healthcare benefits, and other social assistance programs.

IPSAS 43 - Financial Reporting for Heritage Items:

Effective Date: Various dates

Objective: To prescribe the accounting treatment for heritage items.

Summary: Provides guidance on recognition, measurement, and disclosure of heritage items held by
public sector entities, including cultural and historical artifacts, monuments, and sites of significance.
measurement, and disclosure of assets, liabilities, revenue, and expenses arising from combinations
involving public sector entities.