This presentation was made by Livia Shinn Strakova & Peeter Leetmaa, EC, Eurostat, at the 19th OECD Senior Financial Management and Reporting Officials Symposium held at the OECD Conference Centre, Paris, on 4-5 March 2019

1. eurostat
19th Annual Meeting of OECD Senior Financial
Management and Reporting Officials
Paris, 4 - 5 March 2019
Lívia Shinn Straková – Peeter Leetmaa
Unit C1 - EPSAS Team, European Commission - EUROSTAT
EPSAS update

2. EPSAS from 01.01.2019
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• EPSAS is now within Unit C1: National accounts methodology;
Standards and indicators – Head of Unit is John Verrinder
• Integrating EPSAS into core Eurostat work, while creating a
maximum of synergies
• Replaces Task Force EPSAS, a temporary structure

3. EPSAS approach
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A more voluntary and progressive approach:
• Increased fiscal transparency in the short to medium term
• Comparability in the medium to the longer term
Phase 1: Increasing fiscal transparency in the Member States in the
short to medium term by promoting accruals accounting, e.g. IPSAS,
in the period from 2016 to 2020, and in parallel developing the
EPSAS framework (i.e. EPSAS governance, accounting principles
and standards).
Phase 2: Addressing comparability within and between the Member
States in the medium to longer term, implementing EPSAS by 2025.

4. Activities in 2018
1. Support for voluntary accruals implementation in the Member
States
2. Further work on the Technical proposal on EPSAS including the
EPSAS Conceptual framework
3. Impact assessment and supporting impact studies
4. Communication with stakeholders
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5. 1. Support for voluntary accruals implementation
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• Since 2014, 13 projects co-financed by Eurostat in eight MSs:
• DE (Hesse), ES (Cantabria), IT, CY, HU, MT, AT (Burgenland,
Salzburg and Oberösterreich) and PT
• Since 2017, complemented by financial support provided by
Structural Reform Support Service (SRSS) for growth-enhancing
reforms in the MSs to achieve sustainable investment, growth and
job creation:
• Financial support for various public financial management
reforms, including public sector accruals accounting

6. 2. EPSAS Working Group
• MSs public sector accounting experts and observers
• Two WG meetings in 2018:
Luxembourg, 07 - 08 May 2018
Luxembourg, 19 - 20 Nov 2018
• Main discussion points in the WGs:
− Progress reports from Eurostat and SRSS grant beneficiaries
− Technical proposal on EPSAS including EPSAS Conceptual
Framework
− Discussion on EPSAS issues papers
− Impact studies
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7. 7
Technical proposal on
EPSAS
Conceptual Framework
Process for developing
standards
Considerations and
bases for conclusions
Summary and conclusions
on key technical issues
Impact
assessment

8. 2. EPSAS Conceptual Framework (CF)
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 a set of concepts and definitions for the development,
adoption and publication of EPSAS
 guidance for preparation and presentation of financial
accounting information by public sector entities under EPSAS
 guidance for presentation of relevant events and
transactions, where different interpretations are possible or
where no specific standard exists
 helps users to interpret the financial information of public
sector entities at various levels

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2. EPSAS CF - contents
I. General Purpose Financial Reports under the EPSAS
II. Qualitative Characteristics, Application Principles,
Constraints
III. Definition of Elements
IV. Recognition and Derecognition of Elements
V. Measurement
VI. General Purpose Financial Statements
VII. Public Sector Reporting Entity

10. 2. EPSAS issues papers
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2016 - 2017
▪ Small and less risky entities
▪ Otions in IPSAS
▪ Taxes
▪ Heritage
▪ Employee benefits
▪ Social benefits
▪ Infrastructure assets
▪ Segment reporting
▪ Military assets
▪ Social contributions
2017 - 2018
▪ Intangible assets
▪ Charts of Accounts
▪ Disclosures
▪ Provisions, contingent assets
& liabilities, fin. guarantees
▪ Loans and borrowings
▪ Discount rates
▪ Grants and other transfers
▪ Notion of control
▪ Consolidation of FS
▪ Concession arrangements

11. 2. Further technical work 2018 – 2019
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OC-type financial statements
• Why OC-type financial statements in the public sector?
• Characteristics of information in OC-type financial statements
• E.g. items that may distort the reporting of surplus/deficit; non-
recurring; outside of management control; long term etc.
• Possible approaches for OC-type financial statements
• 1: IFRS-approach to OC-type financial statements
• 2: Other comprehensive performance (OCPe) and Other
comprehensive position (OCPo):
• 2A: not enlarging the accounting framework
• 2B: enlarging the accounting framework

12. 12
EPSAS work on measurement
• Aims to contribute to the future EPSAS standard setting in
conceptual and practical terms also by taking into account the
IPSASB’s project on measurement
• Conceptual: How the different measurement bases for assets and
liabilities serve objectives of financial reporting under EPSAS
• In particular, how the different measurement bases serve decision-
making and accountability
• Practical: Develop analysis relating measurement bases
2. Further technical work 2018 – 2019

13. 3. EPSAS possible options
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14. 3. EPSAS impact studies
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- Cost and
benefits
- Cost of
non-EPSAS
- Update on
reforms in MSs
- Impact on EC
priorities
- Lessons learnt
- Capacity issues
- Financial audit
and control
- Measurement of
transparency
PwC
2013-2014
EY
2015-2017
PwC
2016-2018

15. Next steps for 2019
Building on the work programme 2018:
• Further and additional support for the modernisation of public
accounting systems
• Follow up on EPSAS technical proposal and preparations for
future EPSAS standards
- next EPSAS WG on 13-14 May 2019 in Rome
• Where necessary, further analysis of impact considerations
• Continuing communication with stakeholders
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16. European Commission – Eurostat – EPSAS:
NB! New reworked website:
https://ec.europa.eu/eurostat/web/epsas/
Containing: technical developments, analyses, financial
support, expert groups etc.
CIRCABC depository:
https://circabc.europa.eu/w/browse/18db61bc-6649-44b3-af14-
17fcd1c1216c
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