Accounting Q&A · Government Accounting · Topic 5
Practise 25 government accounting questions on selecting and applying IPSAS using five worked public-sector cases. Try each answer before revealing it. The cases are illustrative. Check the applicable reporting framework and local budget rules.
An agency’s staff assume IPSAS applies because another country adopted it
1. What should the accountant establish?
Establish the entity’s governing reporting framework.
2. What evidence should be obtained?
Obtain local adoption documents and reporting instructions.
3. What calculation or procedure would help?
Check scope, amendments and effective periods.
4. What limitation or alternative matters?
IPSAS issuance and local adoption are separate decisions.
5. What should happen next?
Document the framework and applicable standards.
A public body receives a transfer under a binding arrangement
6. What should the accountant establish?
Determine the applicable revenue model under IPSAS 47 if adopted.
7. What evidence should be obtained?
Collect the arrangement and evidence of enforceability.
8. What calculation or procedure would help?
Identify compliance obligations and when they are satisfied.
9. What limitation or alternative matters?
Receipt alone may precede revenue recognition.
10. What should happen next?
Reconcile cash, liabilities and revenue.
A government entity transfers resources under an enforceable arrangement
11. What should the accountant establish?
Assess the transfer provider’s accounting under IPSAS 48 if applicable.
12. What evidence should be obtained?
Gather terms, payment records and recipient performance evidence.
13. What calculation or procedure would help?
Evaluate enforceable rights and when they are satisfied.
14. What limitation or alternative matters?
Recipient revenue and provider expense require separate assessments.
15. What should happen next?
Document the conclusions for each reporting period.
A city recognises a road network for the first time
16. What should the accountant establish?
Assess qualifying infrastructure under IPSAS 45 if applicable.
17. What evidence should be obtained?
Obtain control records, condition data and valuation evidence.
18. What calculation or procedure would help?
Identify components and an appropriate measurement basis.
19. What limitation or alternative matters?
Incomplete asset registers can understate or duplicate infrastructure.
20. What should happen next?
Reconcile the register and disclose material assumptions.
A new standard changes how a balance is presented
21. What should the accountant establish?
Determine transition and comparative treatment.
22. What evidence should be obtained?
Read the issued standard and local implementation rules.
23. What calculation or procedure would help?
Identify required restatements or disclosures.
24. What limitation or alternative matters?
Publication date can differ from effective date.
25. What should happen next?
Record approved transition entries and explain changes.