The amendments address some of the main barriers to adoption of this standard.

The revised version of the Cash Basis IPSAS implements the proposals made in Exposure Draft 61, Amendments to Financial Reporting under the Cash Basis of Accounting. These amendments change some of the requirements from a mandatory to voluntary approach as follows:

• preparation of consolidated financial statements;
• disclosure of information about external and other assistance; and
• disclosure of information about payments made by third parties.

The amendments also ensure that the standard’s requirements are better aligned with requirements in relevant accrual IPSAS issued since 2008.

The revised version takes effect on 1 January 2019, with early adoption available.

‘These amendments respond to the views of preparers by removing some of the obstacles to adoption of the Cash Basis IPSAS,’ said IPSASB chair Ian Carruthers.

‘Robust financial reporting on a cash basis can be an important foundation for broader improvements in public sector financial management. However, the revisions make clear that the IPSASB views the Cash Basis IPSAS as an important stepping stone on the journey to full accrual accounting rather than an end in itself.’

First issued in 2003, and modified in 2006 and 2007, the Cash Basis IPSAS is the only IPSASB pronouncement that deals with the cash basis of accounting.

IPSASB Revised Cash Basis IPSAS issued 8 November 2017 is available here