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IPSAS 22 has no equivalent counterpart under IAS/IFRS.


IPSAS 22 Disclosure of Financial Information about the General Government Sector describes the disclosure requirements for General Government Sector information if a government elects to disclose that information.


IPSAS 22 was issued in December 2006 and applies to annual periods beginning on or after 1 January 2008.



History of IPSAS 22







Effective date

Annual periods beginning on or after 1 January 2008.


Full text

Refer to IFAC website here


Summary of IPSAS 22 Disclosure of Financial Information about the General Government Sector


Objective

IPSAS 22 offers governments the option to elect to disclose financial information about the general government sector (GGS). The standard outlines the disclosure requirements for this information.


Scope

This standard applies to governments that prepare and present financial statements under the accrual basis of accounting and elect to disclose information about GGS [IPSAS 22.2].


Key definition [IPSAS 22.15]

General Government Sector (GGS): comprises all organizational entities of the general government as defined in statistical bases of financial reporting.


The General Government Sector

The GGS is defined in the SNA 93* (and updates) as consisting of [IPSAS 22.18]:

1) all resident central, state, and local government units

2) social security funds at each level of government

3) non-market non-profit institutions controlled by government units


* SNA 93: System of National Accounts 1993 prepared by the United Nations and other international organizations


The GGS comprises those non-profit entities that undertake non-market activities and rely primarily on appropriations or allocations from the government budget to fund their service delivery activities. The statistical bases of financial reporting may also provide information about [IPSAS 22.5]:

• the corporations sector of government that primarily engages in market activities

• the public sector as a whole.


The corporations sector of government that primarily engages in market activities is usually characterized as :

• the public financial corporations (PFC) sector

• the public nonfinancial corporations (PNFC) sector


PFC: the public financial corporations sector comprises [IPSAS 22.19]:

• resident government-controlled financial corporations

• quasi-corporations

• non-profit institutions

that primarily engage in financial intermediation and the provision of financial services for the market.


Comprised in the PFC-sector are government-controlled banks, including central banks, and other government financial institutions that operate on a market basis [IPSAS 22.19].


PNFC: the nonfinancial corporations sector comprises [IPSAS 22.20]:

• resident government-controlled non-financial corporations

• quasi-corporations

• non-profit institutions

that produce goods or nonfinancial services for the market.


Comprised within the PNFC-sector are entities such as publicly owned utilities and other entities that trade in goods and services [IPSAS 22.20].


Accounting policies

Financial information about the GGS should be disclosed in conformity with the accounting policies adopted for preparing and presenting the consolidated financial statements of the government, with following exceptions [IPSAS 22.23]:

• the requirements of IPSAS 6 Consolidated and Separate Financial Statements do not apply in respect of entities in the PFC and PNFC-sector [IPSAS 22.24].

• the investments in the PFC and PNFC-sector should be recognized as an asset and should be accounted at the carrying amount of the net assets of its investees [IPSAS 22.25].


Disclosures


• Disclosures made about of the general government sector shall include as a minimum [IPSAS 22.35]:

o Assets by major class, showing separately the investment in other sectors

o Liabilities by major class

o Net assets/equity

o Total revaluation increments and decrements and other items of revenue and expense recognized directly in net assets/equity

o Revenue by major class

o Expenses by major class

o Surplus or deficit

o Cash flows from operating activities by major class

o Cash flows from investing activities

o Cash flows from financing activities

• The manner of presentation of the GGS disclosures shall be no more prominent than the government’s financial statements prepared in accordance with IPSASs [IPSAS 22.35].

• Significant controlled entities that are included in the GGS shall be disclosed and disclosure of any changes in those entities from the prior period must be made, together with an explanation of the reasons why any such entity that was previously included in the GGS is no longer included [IPSAS 22.40].

• A reconciliation between the GGS disclosures and the consolidated financial statements of the government should be performed, showing separately the amount of the adjustment to each equivalent item in those financial statements [IPSAS 22.43].

December 2006

Issuance of IPSAS 22: Disclosure of Financial Information about the General Government Sector

1 January 2008

Effective date of IPSAS 22

IPSAS 22 Disclosure of Financial Information about  the General Government Sector