NEW YORK-  IFAC and the Zurich University of Applied Science (ZHAW), in partnership with IPSASB, have published a tool for governments and other interested stakeholders to apply best practices in public sector accounting when analyzing COVID-19-related intervention programs.
The COVID-19 pandemic led governments to deploy significant interventions to support individuals, businesses, the monetary system, and specific sectors, including healthcare. In view of the unprecedented scale of these interventions there is an urgent need to understand their full current and ongoing impacts on public finances.

The COVID-19 Intervention Assessment Tool includes:

• A step-by-step process and assessment tool to help assess, evaluate and inform various types of government interventions related to the pandemic; and
• An overview of the way it can support the pathway to accrual IPSAS for governments.

“We are seeing another example of where public sector finances are under great stress a result of a major economic shock – but the current pandemic stands out because of its magnitude and global impact. This increases the pressure on countries to improve their accounting infrastructure to support the tough decisions that will undoubtedly be needed,” said Ian Carruthers, IPSASB Chair. “High-quality financial information enhances government decision-making and supports better outcomes for citizens over the medium and longer-term.”

“Governments with accrual accounting information are better positioned to understand the true picture of their public finances,” said Ross Smith, IPSASB Program and Technical Director. “Understanding the pandemic’s impact on government finances is especially important when considering the need and ability to provide for additional interventions moving forward.”

The supplementary report “Impact Assessment and the Pathway to Accrual” provides high-level insights on the IPSAS adoption and implementation process, and the ways in which the Assessment Tool can support this, while emphasizing the importance that IPSAS adoption occurs within the context of broader public financial management reforms.  

Source: ifac.org