Finance Ministry Concludes Participation In IPSASB Meetings To Enhance Public Sector Accounting Standards

The Ministry of Finance wrapped up its involvement in the International Public Sector Accounting Standards Board (IPSASB) meetings, held in Riyadh from December 10-13, 2024. Participants discussed strategic plans for 2024-2028 and reviewed progress in adopting international accounting standards in the public sector. They also focused on aligning these standards with government financial statistics standards (GSFM2014).

Interactive sessions were part of the event, featuring updates on ongoing projects and discussions about financial statement presentations and sustainability issues within the public sector. These sessions were conducted in collaboration with the World Bank. The event underscored Saudi Arabia's commitment to financial transparency and governance by showcasing its experience with international accounting standards.

On the sidelines, a meeting with the Consultative Advisory Group (CAG) team highlighted Saudi Arabia's efforts in implementing international public sector accounting standards. Discussions included proposed amendments to enhance these standards and improve global public financial management. The transition to accrual accounting was a key focus during these talks.

The Deputy Minister for Financial Affairs & Accounts, Hamad Alkanhal, emphasized Saudi Arabia's dedication to applying top-tier international accounting standards in the public sector. "The Kingdom is keen to apply the best and latest international accounting standards for the public sector," he stated, aiming to elevate transparency and improve financial planning and project management impacts.

For government agencies using these standards, particularly accrual accounting, there is a notable impact on boosting confidence among local and international investors. This application also positively affects the macroeconomy and enhances data quality and reporting. The exhibition accompanying the meetings featured several government agencies discussing their achievements throughout 2024.

Participating entities included the National Center for Government Resources Systems (NCGR), Government Expenditure & Projects Efficiency Authority, Saudi Organization for Chartered and Professional Accountants (SOCPA), National Center for Privatization, Financial Skills Center, Zakat, Tax and Customs Authority, National Debt Management Center (NDMC), and Education and Training Evaluation Commission.

The discussions during these meetings also addressed ways to harmonize international accounting standards with government financial statistics standards. This alignment aims to support better financial reporting practices globally while enhancing governance structures within Saudi Arabia.

The Ministry of Finance's participation in this event reflects its ongoing commitment to advancing public sector accounting practices. By focusing on transparency and governance improvements, Saudi Arabia continues to strengthen its position as a leader in adopting international accounting standards.

With inputs from SPA