The General Assembly of the United Nations (UN) has approved on September 6, 2006, a financial management reform program that calls for the adoption of the International Public Sector Accounting Standards (IPSASs) by the UN. The adoption of IPSASs is viewed as critical to maintaining and enhancing the credibility, transparency and the authority of the financial processes and transactions of the UN.

The President of the International Federation of Accountants (IFAC), Graham Ward, stated “the reform program enables, for the first time, the UN and its many agencies to have a comprehensive and consistent view of their financial position and performance,”

As a result of the UN’s decision to use IPSASs, the UN will move from a system of modified accrual to full accrual, which will provide a more comprehensive financial picture.

The President of the UN’s General Assembly, H.E. Jan Eliasson, issued a statement on the Adoption of the Resolution on Management Reform, in which he said “we have taken a step to make the organization more efficient and effective. We have begun consolidating a culture of accountability and integrity in the secretariat of the UN”

The IPSASB is an independent standard-setting board of the International Federation of Accountants (IFAC), it focuses on the accounting and financial reporting needs of 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 economic statistics.

IFAC is the worldwide organization for the accountancy profession dedicated to serve the public interest by strengthening the profession and contributing to the development of strong international economies.

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