GFS and International Public Sector Accounting Standards 347
partly because gains in one year may be reversed in
subsequent years.
Presentation and Terminology Diff erences.
A6.34 Presentation and terminology diff erences
between IPSASs and GFS reporting guidelines also
exist. As a result, the GFS and IPSAS fi nancial state-
ments and disclosures look diff erent, even though
the information reported is largely the same, apart
from the recognition and measurement diff erences
discussed elsewhere in this paper. Th is subsec-
tion describes the main presentation and terminol-
ogy diff erences between GFS guidance and IPSAS
requirements.
A6.35 Th e main presentation and terminology dif-
ferences are as follows:
- Diff erent names for the IPSAS equivalents of the
GFS statements. - Th e types of classifi cation structures included in
the balance sheet (statement of fi nancial posi-
tion), operating statement (statement of fi nancial
performance), and cash fl ow statement for the
two reporting frameworks diff er, which, in some
cases, also necessitate diff erences in terminology. - GFS sets out a minimum level of detail for a com-
prehensive list of standard line items that all enti-
ties must report in their GFS statements, while
IPSASs establish a minimum set of standard line
items, while providing principles and guidance
on further line items that a reporting entity may
need to report. - Th e way in which additional information about
the data is disclosed diff ers in the two frameworks. - Th e defi nition and/or value of key statement to-
tals (such as total assets, net worth, total revenue,
and surplus/defi cit) may diff er.
A6.36 Each of these main diff erences is discussed
in paragraphs A6.37–A6.46.
Diff erent names for statements
A6.37 Th e IPSAS equivalents to the GFS statements
have diff erent names (see IPSAS 1, Presentation of Fi-
nancial Statements). Th e IPSAS equivalent to the GFS
Balance Sheet is a “Statement of Financial Position,”
although “Balance Sheet” and “Statement of Assets
and Liabilities” are acceptable alternatives under IP-
SASs. Th e IPSAS equivalent to the GFS Statement of
Operations is a “Statement of Financial Performance,”
although “Income Statement,” ”Statement of Revenues
and Expenses,” “Operating Statement,” and “Profi t
and Loss Statement” are acceptable alternatives under
IPSASs. Th e GFS Statement of Other Economic Flows
is partly captured in the IPSAS “Statement of Changes
in Net Assets/Equity” and partly in the IPSAS “State-
ment of Financial Performance.” Th e IPSAS equiva-
lent to the GFS Statement of Sources and Uses of Cash
is called a “Cash Flow Statement.”
A6.38 IPSAS fi nancial statements may also include
a “Comparison of Budget and Actual Amounts,” for
which there is no GFS equivalent. Th is information
must be provided by all entities that publish an ap-
proved budget (see IPSAS 1, Presentation of Financial
Statements and IPSAS 24, Presentation of Budget In-
formation in Financial Statements). It is presented ei-
ther as a separate fi nancial statement or as additional
columns in the fi nancial statements. A separate state-
ment must be used when the budget is on a diff erent
basis from the actual reported results. For example,
if the budget is prepared on a cash basis, while the
results reported in fi nancial statements are prepared
on an accrual basis, the Comparison of Budget and
Actual Amounts Statement is separate. If they are pre-
pared on the same basis, the budgeted amounts can be
fully integrated into the fi nancial statements through
the use of additional columns, and a separate state-
ment is not necessary.Classifi cation structures
A6.39 Th e GFS reporting guidelines classify and
group items in its statements diff erently from IPSASs.
At the highest level, the terminology used for classi-
fi cations is the same—for example, assets, liabilities,
revenue, and expense. However, within these items
there are conceptual diff erences and diff erences in the
structure of subclassifi cations. Th e diff erences refl ect
the diff erent objectives of the two information sets. For
example, IPSASs require that assets and liabilities be
presented as current or noncurrent, or that a liquidity
structure be followed. Th is is important for assessing
an entity’s liquidity and solvency. GFS does not make
this distinction in its core statements, but allows a sup-
plementary table on the maturity structure of govern-
ment’s fi nancial assets and liabilities to be compiled.
However, GFS requires that assets be presented as fi -
nancial or nonfi nancial, which IPSASs do not require.