The International Federation of Accountants (IFAC) has published two new exposure drafts which propose new guidance for accountants working in government and other public sector entities.

Two new exposure drafts have been published: ED40 Intangible Assets [1] and ED41 Entity Combinations from Exchange Transactions [2].

The drafts were compiled by the IFAC's International Public Sector Accounting Standards Board (IPSASB) as part of its global convergence programme to converge International Public Sector Accounting Standards (IPSAS) with International Financial Reporting Standards (IFRS).

“During the current economic crisis, governments around the world have been acquiring business entities that might otherwise be liquidated. These drafts propose financial reporting requirements that will ensure that these transactions are reported in a consistent and transparent manner, ensuring that governments remain accountable for their actions,” explains IPSASB chair Mike Hathorn.

"Converging IPSASs with IFRSs, where appropriate for the public sector, is one of the key objectives of our standards development program," states Hathorn. "These two exposure drafts propose clear financial reporting requirements for an entity in the public sector in order to ensure that the private and public sectors report similar activities in a consistent fashion."