IPSASB aims to improve public sector financial statements

The International Public Sector Accounting Standards Board issued a consultation paper asking for feedback on improving how financial information is presented in public sector financial statements. 

IPSASB hopes to develop a new International Public Sector Accounting Standard to replace IPSAS 1, Presentation of Financial Statements, which was issued in 2000. It's looking for suggestions from stakeholders on how to improve how effectively preparers communicate financial information reported in general purpose financial statements to the users of their financial statements.

"This consultation reflects how the IPSASB is modernizing financial statement presentation in line with evolving global standards," said IPSASB chair Thomas Müller-Marqués Berger in a statement Monday. "Improving how public sector financial information is communicated is essential to ensuring it is useful and actually used by those it is intended to inform. Using reliable financial data strengthens decision making and accountability, supports public financial management, and helps to meet the needs of legislators, oversight bodies, and the public."

The IPSASB is asking for advice on how financial statement presentation can be improved to better meet its stakeholders' needs. The feedback will guide the IPSASB in developing a draft of the proposed IPSAS standard to replace IPSAS 1.

It's asking for comments to be sent on the proposal by Sept. 14, 2026. 

In the U.S. the Governmental Accounting Standards Board issued its Statement 103 standard in 2024, updating a financial reporting model standard for state and local governments from 1999.