Diploma in International Public

Sector Accounting Standards

CIPFA, the Chartered Institute of Public Finance and Accountancy,

is the professional body for people in public finance.
Published by the Chartered Institute of Public Finance and Accountancy.

Apart from any fair dealing for the purpose of research or private study, or criticism or review, as permitted under the Copyright,
Designs and Patents Act 1988, this publication may be reproduced, stored or transmitted, in any form or by any means, only
with the prior permission in writing of the publisher, or in the case of reprographic reproduction in accordance with the terms and
licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be addressed
to the publisher’s agents at the address below:

The Chartered Institute of Public Finance and Accountancy

77 Mansell Street,
London E1 8AN
www.cipfa.org

Warning: the doing of an unauthorised act in relation to a copyright work may result in both a civil claim for damages and criminal
prosecution.

© CIPFA − The Chartered Institute of Public Finance & Accountancy 2019

Contents

Overview iii

1. The financial reporting context for public sector 1

entities
2. Accruals basis financial statements − advanced level 44

3. Accounting for tangible and intangible assets – 110

advanced level
4. Accounting for impairments – advanced level 184

5. Accounting for revenue and provisions – advanced 223

level
6. Accounting for inventories, accounting policies and 301
events – advanced level
7. Consolidation 359

8. The cash flow statement – advanced level 469

9. Reporting and disclosing financial performance and 505

position
10. IPSAS financial reporting under the case basis of 547
accounting – advanced level

i
Overview

CIPFA’s Diploma in International Public Sector Accounting Standards

(‘Dip IPSAS’) qualification is designed to provide students with a thorough
knowledge of the published IPSAS and related documents. Once you have
completed this course, you will be able to demonstrate knowledge of the key
technical content of IPSAS and be able to apply this knowledge to events and
transactions that are relevant to public sector organisations.

The Diploma covers each of the IPSAS in detail and specifically explains:

• the financial reporting context for public sector entities including the role of
IPSASB and the links between IAS/IFRS and IPSAS

• the key requirements of IPSAS in relation to financial statements and the

main disclosure requirements

• the form and content of accruals basis financial statements as prescribed

by IPSAS, applying the requirements to determine the appropriate
treatment of events and transactions and the presentation of figures

• the requirements of the Cash Basis IPSAS and the presentation and
disclosure requirements in the Statement of Cash Receipts and Payments
and associated notes. Areas covered include payments by third parties,
reporting on a net basis, consolidation, foreign currency and more.

iii
iv
 Syllabus

Syllabus
The overall aims of the Dip IPSAS syllabus are as follows:

A. describe the financial reporting context for public sector entities (15%)

B. describe the main requirements of IPSAS (30%)

C. apply the requirements of the IPSAS to determine the appropriate

treatment of events and transactions in financial statements (40%)

D. apply the requirements of the Cash Basis IPSAS (15%)

Appendix A lists the IPSAS which are examinable in your Dip IPSAS exam, and
the level at which each standard is examinable.

v
 Syllabus

Examination
The examination is available for candidates to attempt on-line at any time, and
consists of 60 multiple choice questions.

All questions in the exam carry equal marks. The questions are selected to
ensure coverage of all the aims stated in this syllabus and to take account of
the relative percentage weightings of these aims.

Candidates are required to score 60% to pass the examination. A candidate

who scores 60% or above will be notified immediately after completing the
examination and will shortly thereafter receive a CIPFA diploma confirming that
they have passed the Dip IPSAS qualification. Unsuccessful candidates will be
able to re-sit the examination subject to a maximum of four attempts.

The examination will contain a mixture of numerical questions (for example

calculating balances for inclusion in an organisation’s financial statements) and
narrative questions (for example identifying correct accounting treatments or
disclosure requirements for certain transactions).

vi
 Required knowledge

Required knowledge
This qualification is designed to be suitable for professionals who are already
working in a finance/accountancy role, such as:

• Accountants and finance staff at all levels who are involved in the
preparation of financial statements

• Trainers wishing to refresh their knowledge of the standards

• IPSAS implementation and maintenance teams

• Internal auditors and consultants dealing with financial reporting

It is therefore assumed that you already have a sound knowledge and

understanding of financial accounting techniques and concepts. In particular,
you should ensure that you are confident with the following topics:

• Double entry bookkeeping (debits, credits and ledger accounts)

• Accounting for non-current assets (fixed assets), including depreciation and

disposals

• Preparation of the statement of financial performance (income statement)

and statement of financial position (balance sheet)

• Preparation of the cash flow statement

• Basic accounting concepts (accruals/matching concept, going concern

concept, etc.)

vii
 Required knowledge

Overview of the learning materials

The Dip IPSAS learning materials consist of workbooks and solutions packs
which are designed for use either as part of a taught course or as a standalone
self-study course.

Each of the workbooks covers a number of topics, as shown below. It is

recommended that you work through these workbooks in order, as many of
the workbooks build on topics introduced in earlier workbooks.

Each workbook includes numerous exercises to help you understand and

apply the information given in the workbook, as well as exam standard multiple
choice questions at the end of each workbook.

The workbooks cover the syllabus as follows:

• Aim A: Workbook 1

• Aims B and C: Workbooks 2−9

• Aim D: Workbook 10

The following table outlines the contents of each of the ten workbooks:

No. Workbook name Topic(s) covered

1 The financial reporting Terms of reference and objectives of
context for public sector IPSASB
entities Linkage between IAS/IFRS and IPSAS
IPSASB programme of development
activities
Exposure drafts and consultations
The IPSASB Conceptual Framework for
General Purpose Financial Reporting by
Public Sector Entities
The Preface to IPSAS
Recommended Practice Guidelines
IPSAS 1 Presentation of Financial
2 Accruals basis financial Statements
statements − advanced Revenue and capital
level Statement of financial performance
Statement of financial position
Statement of changes in equity
IPSAS 17 Property, Plant and Equipment
3 Accounting for tangible IPSAS 5 Borrowing Costs
and intangible assets − IPSAS 13 Leases
advanced level IPSAS 31 Intangible Assets
IPSAS 16 Investment Property

viii
 Overview of the learning materials

4 Accounting for impairments IPSAS 21 Impairment of Non-Cash

− advanced level Generating Assets
IPSAS 26 Impairment of Cash Generating
Assets
5 Accounting for revenue and IPSAS 19 Provisions, Contingent Liabilities
provisions − advanced level and Contingent Assets
IPSAS 9 Revenue from Exchange
Transactions
IPSAS 23 Revenue from Non-Exchange
Transactions
IPSAS 11 Construction Contracts
6 Accounting for inventories, IPSAS 3 Accounting Policies, Changes in
accounting policies and Accounting Estimates and Errors
events − advanced level IPSAS 12 Inventories
IPSAS 14 Events after the Reporting Period
IPSAS 4 The Effects of Changes in Foreign
Exchange Rates
IPSAS 10 Financial Reporting in Hyperinflationary
Economies
IPSAS 27 Agriculture
IPSAS 32 Service Concession Arrangements:
Grantor
7 Consolidation IPSAS 34 Separate Financial Statements
IPSAS 35 Consolidated Financial
Statements
IPSAS 36 Investments in Associates
IPSAS 37 Joint Arrangements
IPSAS 38 Disclosures of Interests in Other
Entities
IPSAS 40 Public Sector Combinations
8 The cash flow statement − IPSAS 2 Cash Flow Statements
advanced level
9 Reporting and disclosing IPSAS 29 Financial Instruments
financial performance and IPSAS 18 Segmental Reporting
position IPSAS 20 Related Party Disclosures
IPSAS 22 Disclosure of Financial
Information about the General Government
Sector
IPSAS 24 Presentation of Budget
Information in Financial Statements
IPSAS 33 First-time Adoption of Accrual
Basis IPSASs
IPSAS 39 Employee Benefits
10 IPSAS financial reporting IPSAS Financial Reporting Under the Cash
under the cash basis of Basis of Accounting
accounting − advanced
level

ix
 Overview of the learning materials

Approach to learning
These workbooks are designed to aid your study with clear explanations of the
key concepts and techniques of financial accounting and plenty of exercises
for you to practice the application of these techniques.

You are strongly advised to read the material very carefully and to undertake all
of the exercises, including the exam standard questions.

It is recommended that you work through the workbooks in numerical order,

ensuring that you fully understand each workbook and have attempted all
exercises and questions before moving on to the next workbook. Note that
each workbook contains several exam standard multiple choice questions
which you can use to test your knowledge and understanding of the workbook
before moving on to the next workbook.

x
 Assessment

Assessment
During your Dip IPSAS course, you will undertake three progress tests. Each of
these will consist of 30 multiple choice questions which you will be given one
hour to answer.

• Test 1 will examine everything in workbooks 1−4

• Test 2 will examine everything in workbooks 5−7

• Test 3 will examine everything in workbooks 8−10.

All questions in the progress tests will be of exam standard, so you should
make the most of these opportunities to practise good exam technique.

xi
 Assessment

Revision
The amount of revision required will depend on how well you have absorbed
the knowledge gained in your initial study of the workbooks. You can use your
performance in the progress tests to determine the amount of revision that you
need to do.

The most important element of revision for the Dip IPSAS exam is practising
exam standard questions under exam conditions. This means that you should
try to attempt questions without looking at your notes or model solutions. You
should try to answer questions within the time allocation that you would be
given in the exam.

Simply memorising facts from your study notes will not get you through the
Dip IPSAS exam as you need to be able to apply this knowledge to different
scenarios, and the Dip IPSAS examiner likes to present different scenarios
and types of questions in each exam to ensure that students can apply their
knowledge and not simply churn out memorised facts.

xii
 Appendix − Examination status of IPSAS

Appendix − Examination status of IPSAS

The following table is intended to provide a general indication only of the
extent to which knowledge and application of each standard may be tested
in the Dip IPSAS examination. Syllabus guidelines, learning materials and the
specimen examination paper will provide further detail on the specific aspects
of each standard that candidates should focus their attention on and the style
of examination question that they are likely to encounter.

Examinable at level *
A B C
Conceptual Framework for General Purpose X
Financial Reporting by Public Sector Entities
IPSAS
Preface to IPSASs X
IPSAS 1 Presentation of Financial Statements X
IPSAS 2 Cash Flow Statements X
IPSAS 3 Accounting Policies, Changes in X
Accounting Estimates and Errors
IPSAS 4 The Effects of Changes in Foreign X
Exchange Rates
IPSAS 5 Borrowing Costs X
IPSAS 9 Revenue from Exchange Transactions X
IPSAS 10 Financial Reporting in Hyperinflationary X
Economies
IPSAS 11 Construction Contracts X
IPSAS 12 Inventories X
IPSAS 13 Leases X
IPSAS 14 Events after the Reporting Date X
IPSAS 16 Investment Property X
IPSAS 17 Property, Plant and Equipment X
IPSAS 18 Segment Reporting X
IPSAS 19 Provisions, Contingent Liabilities, X
Contingent Assets
IPSAS 20 Related Party Disclosures X
IPSAS 21 Impairment of Non-Cash-Generating X
Assets
IPSAS 22 Disclosure of Financial Information X
about the General Government Sector
IPSAS 23 Revenue from Non-Exchange X
Transactions (Taxes and Transfers)

xiii
 IPSAS 24 Presentation of Budget Information in X
Financial Statements

IPSAS 26 Impairment of Cash Generating Assets X

IPSAS 27 Agriculture X
IPSAS 28 Financial Instruments: Presentation X
IPSAS 29 Financial Instruments: Recognition and X
Measurement
IPSAS 30 Financial Instruments X
IPSAS 31 Intangible Assets X
IPSAS 32 Service Concession Agreements: X
Grantor
IPSAS 33 First-time Adoption of Accrual Basis X
IPSASs
IPSAS 34 Separate Financial Statements X
IPSAS 35 Consolidated Financial Statements X
IPSAS 36 Investments in Associates and Joint X
Ventures
IPSAS 37 Joint Arrangements X
IPSAS 38 Disclosures of Interests in Other Entities X
IPSAS 39 Employee Benefits X
IPSAS 40 Public Sector Combinations X

IPSAS 41 Financial Instruments1 X

Cash Basis IPSAS− Financial Reporting Under the X

Cash Basis of Accounting

* Levels of knowledge required for examinations

Level A: A thorough knowledge with a solid understanding of the subject

matter and some experience in its application in practice sufficient to: exercise
reasonable professional judgement in the application of the subject matter in
those circumstances generally encountered in practice; and recognise when
the assistance of a specialist may be required. This level of knowledge is lower
than that of a specialist.

Level B: A working knowledge with a broad understanding of the subject

matter and a modicum of experience in its application sufficient to: apply the
subject matter in straightforward circumstances; and identify issues requiring
professional attention in more complex situations.

Level C: A general knowledge with a basic understanding of the subject

matter and training in its application sufficient to: identify significant issues;
evaluate their potential implications or impact; and recognise that additional

1 IPSAS 41 comes into effect in 2022

xiv
work or advice may be required to be performed by a person technically
competent in this area of expertise. This level of knowledge is significantly
greater than that of a layperson.

xv
xvi