Design of a sequenced approach to implementing International Public Sector Accounting Standards (IPSAS) – Georgia 2009 – 2010
Michael Parry Consulting associated with a Georgian consulting firm to field a team of consultants led by Michael Parry. The task was to design a comprehensive strategy for Georgia to progressively implement International Public sector Accounting Standards (IPSAS) in a phased manner over a 10-year period.
A plan was developed and discussed at a series of workshops before being formally adopted by the Government. The plan included procedures for the institutional and legal framework, organisational and technical reforms. The IPSAS implementation strategy strategy envisaged moving from cash through a form of modified cash to full accrual accounting and IPSAS compliant reporting by the end of the period. A new chart of accounts for the public sector enabling both IPSAS and IMF GFS 2001 reporting was designed.
The IPSAS strategy has been formally adopted by the Government of Georgia and is currently being implemented.
We have also developed IPSAS implementation plans for the Gambia, Albania and the Maldives.
Lessons learned have included:
- The need to sequence IPSAS implementaiotn to take account of the country situation, priorities and capacity
- The major challenge of identifying the entities to be consolidated for national reporting
- The requirement for a phased transition from cash to accrual taking account of elements of accrual that may already exist within national accounting procedures, e.g. systems inherited from the former Soviet Union already include a substantial element of accrual reporting.