exists for financial reporting political purposes. structure for FGN to consolidate SGA and LGA’s. 7 Requires all investments in Consolidation Accounting associates to be for Investments in accounted for in the consolidated Associates is a difficult financial statements using the equity method of accounting, task even in except when the investment is acquired and held exclusively with private a view to its disposal in the near future in which case the cost method is required. settings. IPSAS 8 Requires proportionate Accounting for Financial consolidation to be adopted as the joint venture Reporting of benchmark treatment for using equity Interests in Joint accounting for such joint ventures method will Ventures entered into by public sector result in given entities. However, IPSAS 8 also undue advantage permits as an allowed alternative to government. – joint ventures to be accounted for – using the equity method of accounting. IPSAS 9 Establishes the conditions for the Fair value Revenue recognition of revenue arising from consideration from Exchange exchange transactions, requires may results in Transactions such revenue to be measured at the directing fair value of the consideration financial reports received or receivable and includes to preparers’ disclosure requirements. interest (income smoothing). In governments this allows for the tendency of corruption. Describes the characteristics of a Financial IPSAS 10 Financial hyperinflationary economy and restatement may Reporting in
exists for financial reporting purposes. political structure for FGN to consolidate SGA and LGA’s. 7 Accounting for Investments in Associates Requires all investments in associates to be accounted for in the consolidated financial statements using the equity method of accounting, except when the investment is acquired and held exclusively with a view to its disposal in the near future in which case the cost method is required. Consolidation is a difficult task even in private settings. IPSAS 8 Financial Reporting of Interests in Joint Ventures Requires proportionate consolidation to be adopted as the benchmark treatment for accounting for such joint ventures entered into by public sector entities. However, IPSAS 8 also permits – as an allowed alternative – joint ventures to be accounted for using the equity method of accounting. Accounting for joint venture using equity method will result in given undue advantage to government. IPSAS 9 Revenue from Exchange Transactions Establishes the conditions for the recognition of revenue arising from exchange transactions, requires such revenue to be measured at the fair value of the consideration received or receivable and includes disclosure requirements. Fair value consideration may results in directing financial reports to preparers’ interest (income smoothing). In governments this allows for the tendency of corruption. IPSAS 10 Financial Reporting in Describes the characteristics of a hyperinflationary economy and Financial restatement may
IPSAS-ICPAn-final.docx