The International Federation of Accountants (IFAC) announced on November 28, 2006, that the International Public Sector Accounting Standards Board (IPSASB) has issued an exposure draft ED 32 entitled “Financial Reporting under the Cash Basis of Accounting –Disclosure Requirements for Recipients of External Assistance”. ED 32 is designed to strengthen the disclosure of financial information about external assistance.

ED 32 affirms that the financial statements of recipients of external assistance disclose the total amount of external assistance received, used, and available during the reporting period. As a matter of fact, the disclosure will increase the transparency of the financial statements recipients and will contribute to greater accountability by the recipients of such assistance.

IPSASB Chair Philip Adhemar pointed out, “ED 32 reflects an approach that enhances the accountability of financial statements, does not impose an inappropriate burden on reporting entities.

IPSASB, an independent standards-setting board of the International Federation of Accountants (IFAC), focuses on the accounting and financial reporting needs of national, regional, and local governments. The primary goal of the IPSASB is to achieve convergence in financial reporting between different governments, with private sector, and between financial reporting and economics statistics.

For more information please visit the following website: www.ifac.org