Accounting for combinations of public sector entities and preparing consolidated financial statements are significant challenges for IPSAS preparers. This two-day program provides a comprehensive understanding of, and hands-on practice in, applying the IPSAS requirements for determining control, for consolidating subsidiaries and reporting associates and joint arrangements in separate and economic entity financial statements.

Our specialist instructors provide an in-depth review of the relevant standards. In addition they will consider consolidation boundaries at the whole of government level and the implications in relation to Government Financial Statistical (GFS) reporting:

  • IPSAS 34 Separate Financial Statements
  • IPSAS 35 Consolidated Financial Statements
  • IPSAS 36 Investments in Associates and Joint Ventures
  • IPSAS 37 Joint Arrangements
  • IPSAS 38 Disclosure of Interests in Other Entities
  • IPSAS 40 Public Sector Combinations

Methods of determining control, significant interest and joint control are demonstrated in an interactive group environment utilizing case studies, illustrative examples, and model financial statements. The program also gives delegates a sound understanding of the requirements and methodology for consolidation, and application of the equity method under IPSASs.

The course answers questions such as:

  • Which entities are required to produce consolidated or economic entity financial statements?
  • What are the boundaries for consolidation at the whole of government level and how does this relate to boundaries under GFS reporting?
  • How is control or significant interest determined?
  • What is the process of consolidation and what adjustments are required in relation to inter-entity transactions and balances and how are these impacted where there are non-controlling interests?
  • What is equity method accounting and who should use it?
  • How do transfers of assets from the investor to the investee and increases or decreases in ownership accounted for?
  • What is the difference between a joint venture and a joint operation, and how are interests in joint operations accounted for?
  • What treatments are permitted in the separate financial statements of the “investor”?
  • What disclosures are required?
  • What transitional provisions are permitted on first time application by first-time adopters of IPSAS?
  • How should entities account for public sector combinations, as either amalgamations or acquisitions?

Learning Objectives:

  • Differentiate between the different levels of investment and identify the appropriate accounting treatment
  • Identify whether you have control, significant influence, joint control or other investments
  • Practice the preparation of consolidated financial statements for an investor and its controlled entity in accordance with IPSAS 35
  • Perform equity accounting for an associate or joint venture by applying IPSAS 36
  • Identify the two forms of joint arrangement and apply the appropriate accounting methods
  • Plan ahead for issues that arise when transitioning from the cash basis to the accrual basis of accounting pertaining to consolidations and interests in other entities
  • Understand the key challenges for complying with the new Standards IPSAS 34-38
  • Distinguish between the two types of public sector combination in IPSAS 40 and apply the relevant techniques
  • Learn the sources of IPSAS guidance that are available

If you haven't already registered for this course, you can book your place today on our website. If you have already registered, click on the Continue button at the bottom of the page to log in.

Register Now

Skill Level: Beginner