IPSAS HRM NRM Gemeinde Kanton Bund

	Whereas the traditional statement of accounts under HRM comprises up to 260 pages, the IPSAS statement of accounts contains just 23 pages
	HRM and IPSAS both follow the rules of double-entry bookkeeping. Consolidation and assessment regulations, as well as duties of disclosure in the Notes, result in a substantially different statement under IPSAS from under HRM. Accounts under IPSAS are much less voluminous than those under HRM. They dispense with presenting non-essential details, but in addition contain key information of relevance to risk, such as cash flow or contingent liabilities. In its main features the presentation corresponds to that of private companies and is therefore suitable for the militia.
	Comparison of IPSAS and HRM
	HRM Harmonised accounting model	IPSAS International Public Sector Accounting Standards IPSAS
Purpose/Aim	Proposal from the Conference of Cantonal Directors of Finance for the submission of accounts of bodies incorporated under public law for the attention of the cantons. Basis for individual law-making in the cantons (financial budget and local authority act) Standardising cantonal and local authority accounts	Compiling rules for specifying individual topics of accounting in public authority budgets. Creating transparency for stakeholders True and fair view principle
Components of the annual accounts Jahresrechnung	Balance acct. (balance sheet) Current account (P&L) Investment account Notes	Balance sheet Profit & Loss Account (P&L) Cash flow account Proof of capital resources Notes
Application	Defining the most important balance sheet figures (financial and administrative assets). Uniform accounting system (types of costs, functions). Recommendation for depreciation regulations. Also instrument for loan approval.	Based on practice and empirical values of private sector companies. Can thus be constantly supplemented. Every standard has to be complied with to achieve IPSAS conformity.
Adaptability	Rather protracted process. Politically laws, ordinances and district memoranda have to be redrafted.	Constantly supplemented on the basis of the existing IFRS.
Consolidation	The bottom-up approach prescribes for every local authority (political, school, church authority) that all services rendered by the legal entity without its own legal form (incl. dependent institutions) have to be compiled in one account. No definition of consolidation circle.	IPSAS prescribe how consolidation is to take place, and also defines the consolidation circle (top down).
Rating / Benchmarking	Relatively difficult, as there are only a few standardised accounting regulations (uniform accounting system) and each canton has regulated its accounting differently within its legislation. Hence greater expense for comparable figures.	Thanks to comparable accounting benchmarks can be drawn up among the individual administrations. This creates greater transparency for rating.
	Annual accounts under IPSAS include not only the balance sheet, profit and loss account and cash flow account, they also contain proof of the capital resources and clearly structured notes. This composition of the annual accounts is comparable with that of private sector companies. It enables the practised balance sheet reader to gain a quick and efficient insight into the financial situation of the public institution. Furthermore, it pays particular attention to consolidation.