The IPSASB has recently published the Exposure Drafts no. 49, which deals with the assessment of control as a key driver in defining consolidation area as well as in preparing the consolidated financial statements of public sector entities. In contrast with this approach, the so-called “budget approach”, which refers to the relevance of funds an entity receives from the government budget, could be adopted. The aim of the paper is to investigate these approaches taking into account the comments letters submitted to the ED no. 49 (comments were due on February 28, 2014). From a methodological point of view, moving from an in-depth reading and interpretation of each comment submitted (in order to maintain its uniqueness and richness), we develop taxonomy of common arguments provided by respondents in support or contradiction of the ED no. 49. The main findings concern the acceptance of both the alignment between the proposed standard and the IFRS 10 as well as the key role played by the “control approach”, even though, according to respondents, it needs to be better specified, in order to take into account the characteristics of the public sector.
The definition of control in public sector consolidated financial statements
BISOGNO, Marco;SANTIS, SERENA;TOMMASETTI, Aurelio
2014-01-01
Abstract
The IPSASB has recently published the Exposure Drafts no. 49, which deals with the assessment of control as a key driver in defining consolidation area as well as in preparing the consolidated financial statements of public sector entities. In contrast with this approach, the so-called “budget approach”, which refers to the relevance of funds an entity receives from the government budget, could be adopted. The aim of the paper is to investigate these approaches taking into account the comments letters submitted to the ED no. 49 (comments were due on February 28, 2014). From a methodological point of view, moving from an in-depth reading and interpretation of each comment submitted (in order to maintain its uniqueness and richness), we develop taxonomy of common arguments provided by respondents in support or contradiction of the ED no. 49. The main findings concern the acceptance of both the alignment between the proposed standard and the IFRS 10 as well as the key role played by the “control approach”, even though, according to respondents, it needs to be better specified, in order to take into account the characteristics of the public sector.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
