Why IPSAS are being introduced in Switzerland
The application of the IPSAS gives bodies incorporated under public law greater significance through comparability with general and internationally recognised regulations for submitting accounts. The greater transparency raises the quality of financial management, facilitates dealings with financiers and simplifies communication with the general public.
True and fair view
One part of the accounting in the public sector does not give an insight into the actual situation of assets, finances and revenue (true and fair view). This makes it difficult for the general public and politicians to assess the accounting systems. Here IPSAS provide assistance with uniform standards.
Internal control and monitoring
The basis for efficient control and monitoring processes in public administration is valid Information. IPSAS helps improve the quality of financial information. This simplifies the internal control and monitoring of public institutions.
Compatibility with private sector accounting
As a rule the accounting systems of public and private institutions are incompatible. A system of accounting based on internationally recognised standards reduces these interface problems.
Comparisons and rating
The world over there is a plethora of different regulations on accounting in the public sector. The annual accounts of a local authority in Switzerland are not comparable with the accounts of a local authority in Germany or the USA. Public institutions are reliant on financing through credit and borrowing. A standardised system of accounting considerably simplifies the valid assessment of the efficiency of public institutions and rating.