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 different types of revenues?
• How to understand expense recognition under IPSAS?
• How to account for construction contracts?

• 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. No advance preparation is required for this course.

• Define revenue from exchange transactions, revenue from non-exchange transactions and expenses.
• Identify the recognition criteria and measurement bases that are applied to revenue from exchange transactions, revenue from non-exchange transactions and expenses.
• Distinguish between the accounting treatment of revenues and expenses for the two types of construction contracts: Fixed Price and Cost Plus.
• Differentiate between the disclosure requirements for revenue from exchange transactions, revenue from non-exchange transactions and 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 managers 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