Compare cash basis and accrual basis IPSAS requirements and identify the transactions most affected.
Finance & Banking
Moving from Cash to Accrual Accounting Under IPSAS in Government Entities
Learn to plan and execute the transition from cash to accrual IPSAS in government entities, applying transitional exemptions and building a defensible opening balance sheet.
🗓️Duration5 training days
📚Content4 modules · 8 sessions
🎓On completionAccredited attendance certificate
About the programme
Course Overview
Government entities that report on a cash basis can show a healthy in-year position while carrying unrecognised infrastructure assets, unfunded employee obligations and contingent liabilities that only accrual accounting brings into view. This course guides participants through the transition from cash basis to accrual basis IPSAS, starting with a structured comparison of what each basis recognises and a realistic multi-year roadmap for the change. Central to the course is IPSAS 33, which permits phased recognition of assets and liabilities during a transitional period, and participants learn to sequence that relief sensibly rather than treating it as a deadline to defer everything. Practical sessions cover building an opening balance sheet asset register from incomplete records, selecting valuation approaches when historical cost is unavailable, recognising non-exchange revenue such as taxes and grants alongside exchange revenue for services, and recognising employee benefit obligations and contingent liabilities. The final module addresses the chart of accounts redesign, system configuration and staff capacity building that government entities need to sustain accrual reporting after the first financial statements are produced, so the transition survives beyond the initial project team.
Expected Learning Outcomes
Plan a multi-year transition roadmap with defined governance, milestones and budget.
Apply IPSAS 33 transitional exemptions to sequence asset and liability recognition realistically.
Build an opening balance sheet asset register with defensible valuation and useful life assumptions.
Recognise non-exchange and exchange revenue correctly under accrual-based public sector accounting.
Recognise employee benefit obligations, provisions and contingent liabilities under accrual IPSAS.
Prepare a first set of accrual-based financial statements supported by an adapted chart of accounts.
Who Should Attend
Government finance staff leading the transition from cash to accrual accounting.
Ministry of finance and treasury officials overseeing public financial management reform.
Public sector auditors reviewing opening balance sheets under accrual-based reporting.
Asset management staff responsible for compiling public infrastructure and property registers.
Financial systems teams configuring government resource planning systems for accrual reporting.
Advisors and donor agency staff supporting public financial management reform programmes.
Course Modules
Select any module to see its sessions and points.
01Foundations of the Cash-to-Accrual Transition
2 sessions · 8 points
Session 1Comparing Cash Basis and Accrual Basis IPSAS Requirements
- Compare the recognition, measurement and disclosure requirements of cash basis and accrual basis IPSAS.
- Identify the categories of transactions where cash and accrual reporting produce materially different results.
- Assess current cash-basis financial statements to identify gaps against accrual basis requirements.
- Map stakeholder reporting needs, including the legislature, auditors and lenders, against each basis.
Session 2Planning the Transition Roadmap and Governance Structure
- Draft a multi-year transition roadmap sequencing asset recognition, systems change and staff training.
- Establish a transition governance structure with defined roles across finance, asset management and IT.
- Identify the transitional exemptions and relief periods available before committing to a timetable.
- Secure an implementation budget covering valuation, systems and training costs across the roadmap.
02Opening Balance Sheet and Asset Recognition
2 sessions · 8 points
Session 1Applying IPSAS 33 Transitional Exemptions
- Apply the transitional exemption provisions that allow phased recognition of assets and liabilities.
- Sequence the recognition of asset classes during the permitted transitional period based on data readiness.
- Document the accounting policies adopted during transition for disclosure in the first accrual statements.
- Assess when the transitional relief period should end based on data completeness rather than the calendar alone.
Session 2Identifying, Valuing and Recognising Property and Equipment
- Compile an asset register from physical verification, procurement records and legacy cash-basis records.
- Select an appropriate valuation approach for assets lacking reliable historical cost records.
- Determine useful lives and depreciation methods for major classes of property, plant and equipment.
- Reconcile the completed asset register to the opening accrual balance sheet for audit purposes.
03Revenue, Expenses and Liability Recognition
2 sessions · 8 points
Session 1Recognising Revenue Under Accrual-Based Public Sector Accounting
- Distinguish non-exchange revenue such as taxes and grants from exchange revenue such as fees for services.
- Recognise non-exchange revenue at the point control of the resource is obtained, applying any stipulations.
- Recognise exchange revenue as performance obligations to service recipients are satisfied.
- Reconcile budgeted cash-basis revenue estimates with recognised accrual-basis revenue for oversight reporting.
Session 2Recognising Provisions, Employee Benefits and Contingencies
- Recognise employee benefit liabilities, including leave entitlements and post-employment obligations.
- Apply recognition criteria to distinguish provisions from contingent liabilities in public sector disclosures.
- Estimate long-service and retirement obligations using actuarial or simplified measurement approaches.
- Disclose contingent liabilities such as guarantees and legal claims in line with accrual IPSAS requirements.
04Systems, Reporting and Sustaining the Transition
2 sessions · 8 points
Session 1Adapting the Chart of Accounts and Financial Systems
- Redesign the chart of accounts to capture accrual-basis transactions alongside budget execution codes.
- Configure financial systems to post depreciation, accruals and provisions automatically each period.
- Map legacy cash-basis codes to new accrual-basis accounts to preserve historical reporting continuity.
- Test system-generated accrual entries against manually calculated figures before go-live.
Session 2Producing First Accrual Statements and Building Capacity
- Prepare the first full set of accrual-based financial statements, including notes and accounting policies.
- Coordinate with external auditors early to agree opening balance sheet audit evidence requirements.
- Deliver a staff training programme covering accrual concepts for budget holders and finance staff.
- Establish a post-implementation review to capture lessons and refine the closing process for future periods.
What the participant receives
4 course modules
A structured syllabus
8 training sessions
across 5 days
32 detailed points
Applied, detailed content
Accredited attendance certificate
On completing the programme
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