IPSAS - Revenues and Expenses (online)
This module will cover revenue and expense recognition under IPSAS. Public sector entities can derive revenue from exchange and non-exchange transactions (see figure below). IPSAS 9 Revenue from Exchange Transactions is the current standard to be applied when determining how and when revenue should be recognized for exchange transactions. IPSAS 9 sets the principles for the recognition of revenue arising from the sale of goods and the rendering of services. IPSAS 23 Revenue from Non-Exchange Transactions (taxes and transfers) prescribes the requirements for accounting and reporting for revenue arising from non-exchange transactions. Common sources of non-exchange revenue in the public sector include taxes and transfers. The difference between exchange and non-exchange transactions is the substance rather than the form of the transaction. It should also be noted that within the public sector revenue transactions can include both exchange and non-exchange components. IPSAS 11 on Construction Contracts sets out the principles for the recognition of revenue arising from long-term construction contracts. In order to cover the accounting for revenue generating transactions this chapter will include IPSAS 23, IPSAS 9, and IPSAS 11.
This module answers questions such as:
- What is the difference between exchange and non-exchange revenue?
- How to classify transactions as exchange or non-exchange revenue?
- How to comprehend the recognition and measurement of both exchange and non-exchange revenues?
- What are the disclosure requirements for revenues?
- How to understand expense recognition under IPSAS?
- IPSAS 23 Revenue from Non-Exchange Transactions (Taxes and Transfers)
- Nature of non-exchange transactions and scope of standard
- Distinguishing contributions direct to net assets from transactions that are of a revenue nature
- Transactions that include both exchange and non-exchange elements
- General principles; when to recognise assets in relation to non-exchange revenues and should the credit entry be recognised as a liability or revenue?
- Distinguishing between restrictions and conditions; practical applications
- Recognition and measurement of tax revenue; practical applications
- Recognition of revenue from specific types of transfers
- Recognition of donated services; distinguishing services receivable from goods, whether or not to recognize them
- Required presentation and disclosure of non-exchange revenue
- Optional transitional requirements for first time adopters
- IPSAS 9 Revenue from Exchange Transactions
- Nature and frequency of exchange transactions in the public sector
- Identifying exchange transactions
- Accounting principles
- Specific accounting treatments
- IPSAS 11 (Revenue from) Construction Contracts
- Identifying entities and transactions within the scope of IPSAS 11
- Measuring revenue by stage of completion; revenue and profit recognition
- Accounting principles; recognition and measurement of contract assets and contract liabilities
- Accounting for variations
- Presentation and disclosure
This is a self-study online module. It includes interactive lessons, a case study, practice and final exams and, on passing the final exam you, will be awarded a CPE certificate.
All course content may be accessed through any device: desktop, laptop, tablet or smartphone so you can learn whenever and wherever you wish.
Watch a short course demonstration
Understanding of basic accounting principles based on any national standards in the public sector. No advance preparation is required for this course.
- Learn the definition exchange and non-exchange transaction transactions
- Understand the key sources of non-exchange revenue: taxes and transfers
- Appreciate the measurement f exchange and non-exchange revenue
- Understand how to identify entities and transactions within the scope of IPSAS 11 on construction contracts
- Appreciate the measuring construction contracts revenue by stage of completion; revenue and profit recognition
- Learn the accounting principles; recognition and measurement of contract assets and contract liabilities
- Appreciate the key disclosure requirements for non-exchange and exchange revenue as well as construction contracts
Who should attend?
Participants who require a high level overview and awareness of the core IPSAS accruals based standards including:
- Finance and accounting managers of public sector entities considering to adopt IPSAS
- Government officials and project managers responsible for IPSAS transition
- Accountants and finance staff of public sector entities and similar agencies (e.g. UN) in the process of adopting IPSAS
- Accountants and finance staff moving from private to public sector environments
- Operations mangers of public entities needing an awareness of public sector financial reporting
- Internal auditors of entities that have adopted IPSAS or are in the process of doing so
- Accounting practitioners, consultants and external auditors
- Analysts of public sector entities
- Our eLearning courses are designed to allow online interaction with our expert instructors, while covering the same content as our highly popular live training courses.
This module is designed as a self-study course and is not supported by an instructor. If you prefer instructor led online training you should choose our Course 3030e: IPSAS (Accrual Basis) - Basics online course.
To bring this course in-house please contact us and we will be pleased to assist