PFM6 – Financial Reporting Framework for Public Sector Entities

PFM 6: FINANCIAL REPORTING FRAMEWORK FOR PUBLIC SECTOR ENTITIES

4.6.1. LEARNING OUTCOMES: On completion of this module, students will be able to:

1. Outline the objectives of Financial Reporting for Public Sector entities;
2. Explain the Conceptual Framework underpinning the Financial Reporting for Public Sector entities;
3. Explain the Role and Significance of International Public Sector Accounting Standards (IPSAS);
4. Prepare Financial Statements in Public Sector organizations in line with IPSAS; and
5. Design and implement performance measures in Public Sector organizations.

4.6.2. MODULE UNITS AND WEIGHTINGS

Unit	Title	Weight %
1	Financial Reporting Framework for Public Sector Entities	15
2	International Public Sector Accounting Standards (IPSAS)	30
3	Preparation of Financial Statements in Public Sector Entities	40
4	Financial Performance Measurement in Public Entities	15

4.6.3. COURSE CONTENT

UNIT 1: FINANCIAL REPORTING FRAMEWORK FOR PUBLIC SECTOR ENTITIESUnit Topics:

• 1.1 Objectives of Financial Reporting in the Public Sector
• 1.2 Users of Financial Reports in the Public Sector
• 1.3 The IPSASB Conceptual Framework for General Purpose Financial Reporting by Public Sector entities
• 1.4 Linkage between IFRS and IPSAS.

UNIT 2: INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS (IPSAS)

• 2.1 Rationale for Public Sector Accounting Standards
• 2.2 Recognition, measurement and disclosure requirements of IPSAS.

UNIT 3: PREPARATION OF FINANCIAL STATEMENTS IN PUBLIC SECTOR ENTITIES

• 3.1 Elements of Financial Statements
  • 3.1.1 Statement of Financial Position
  • 3.1.2 Statement of Financial Performance
  • 3.1.3 Statement of changes in Net Assets/Equity
  • 3.1.4 Cash flow Statement
  • 3.1.5 Notes to the Accounts
• 3.2 Prepare financial statements based on the IPSASs:
  • 3.2.1 Cash Basis Reports
  • 3.2.2 Accrual Based Reports (As per Accrual Based Standards)

UNIT 4: FINANCIAL PERFORMANCE MEASUREMENT IN PUBLIC ENTITIES

• 4.1 The Regulatory Framework for measuring performance in the Public Sector
• 4.2 Analysis of quantitative and qualitative approaches to performance measurement
• 4.3 Analytical methods of performance management:
  • 4.3.1 Cash flow & Working Capital Management
  • 4.3.2 Forecasting and Budgeting
  • 4.3.3 Ratio Analysis
• 4.4 Application of Risk Management in resource allocation
• 4.5 Change management strategies in transition to accruals based accounting

4.6.4 The Examination Paper Format:

Structure of the Paper	Marks
Section A: 1 Compulsory question of 40 marks	40
Section B: Any 3 out of 4 questions, 20 marks each	60
TOTAL	100

The candidates will be allowed fifteen (15) minutes reading time. 4.6.5 Recommended Readings: ZICA PFM 6 Study Materials