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
  • Disclosures
• 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 and usually takes 1-3 hours to complete. A module usually includes interactive lessons, a case study, a practice quiz and a final exam.

The final exam has a pass mark of 70%. One re-take is permitted if you don't achieve the pass mark the first time. You will have up to a year from the date of enrolling on the module to pass the exam.

Once you have passed the module you will be awarded a certificate of completion.

All course content may be accessed through any device: desktop, laptop, tablet or smartphone so you can learn whenever and wherever you wish.

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

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

To bring this course in-house please contact us and we will be pleased to assist