The Government of Liberia (GOL), through the Ministry of Finance and Development Planning, and in consultation with the Auditor General of Liberia, will begin using the November 8, 2017 updated version of the International Public Sector Accounting Standards (IPSAS) Cash Basis of Accounting for the preparation of the government financial statements.
This implementation, which takes effect July 1, 2021, of the 2020/2021 fiscal year, advises ministries, agencies and commissions that are reporting using the IPSAS Cash Basis of Accounting to prepare financial statements using the updated version of IPSAS CASH BASIS – 2017.
The government’s instruction is in compliance with the Amended and Restated Public Financial Management Act of October 22, 2019, Section 47.2, which states, “The Minister, in consultation with the Auditor General, shall be responsible for establishing the accounting rules and standards for central government.
“These will be set out in accounting regulations, established under this Act, and further detailed in instructions and guidelines issued by the Minister.”
The implementation of the updated or modernized IPSAS Cash Basis of Accounting for all agencies is in recognition of recent updates to several standards by IPSAS Board in 2017, and their impacts on Cash Basis IPSAS as adopted by the Government of Liberia (GOL) in 2009 for preparation of GOL financial statements.
Accordingly, a period of ninety days have been given to ministries, agencies and commissions as of the July 1, 2021 timeline to prepare the financial statements through the updated version.
For additional guidance, ministries, agencies, commissions and all reporting on Government of Liberia (GOL) expenditures are requested to contact the Department of the Comptroller and Accountant General at the Ministry of Finance and Development Planning.