IFRS – IPSAS – Tools for corporate Governance & Government Governance

Government owns huge intangible assets and scams predominantly happen in intangible assets. Recently CAG had been valuing intangible assets like spectrum at FAIR VALUE, which is precise base of IFRS. Should we expect further unearthing of scams?  If so, in which intangible assets?

Time has come to look at some reporting as a TOOL FOR CORPORATE GOVERNANCE and for that matter, even GOVERNMENT GOVERNANCE

So I title this article as IFRS – IPSAS – Tools for corporate Governance & Government Governance

As a proud cost accountant, I always referred MIS report when I was CFO/Finance Director and used to refer financial accounts at year-end or quarter-end as per legal needs.

Same was the case with my owners/promoters & MDs.

Meaning of SCAM word is now known to everybody. It is essential to add here that IFRS in spirit goes for corporate governance and forces an organization to report in a transparent fashion to aim at corporate governance. IFRS is adopted by 120+ countries, while most of these countries are almost fully privatized. So there is a necessity for a country like India which has lots of tangible and more so, intangible assets in the hands of Govt sector, must have NOT just reporting tool for corporate governance but also for Government Governance.

While IFRS will serve purpose of corporate governance based reporting, IPSAS is International public sector accounting standard which is a tool for transparent report for government bodies. So India needs both.

Pertinent to answer following questions here.

Intangible assets are lying with public sector. Here is a humble attempt which can help whether CAG or Anna Hazare by linking various intangible assets with various ministries.

 So come to think of it,

1.    Spectrum is a well-known intangible asset which will get disclosed by IFRS in corporate accounts & IPSAS in Government accounts.

2.    Power, mining, land development rights are solely within preview of public sector and IPSAS will throw light on it.

We have lots of Cost & management accountants in public sector and I am sure they will carry this message for Government governance.