CPFM Module I
Public Sector Accounting and Reporting I cheat sheet
Every chapter's key points, formulas and definitions on one page, for the last week before the exam. Each heading links to the chapter that explains it.
Background to public sector reporting
- Public sector accounting provides information useful for accountability and decision making: how public resources were raised and used, for citizens, the legislature and other stakeholders, rather than mainly for investors.
- In Kenya it operates within the PFM Act, 2012 and the County Government Act, 2012, which require prescribed reporting formats and timelines for national and county entities.
- The cash basis recognises a transaction only when cash is received or paid; the accrual basis recognises it when it occurs economically, giving a fuller picture of assets and liabilities.
- The IPSASB develops IPSAS, the PSASB is Kenya's own body prescribing standards and formats for public entities, and ICPAK sets professional and ethical standards for accountants.
- IPSAS adapt IFRS principles to the public sector's distinctive features: non-exchange revenue such as taxes and grants, public accountability and the absence of a profit motive.
Key terms
- Cash basis accounting
- Recognises transactions only when cash is actually received or paid, simpler, and historically the traditional basis for Kenyan government accounting (the chapter on the cash basis).
- Accrual basis accounting
- Recognises transactions when they occur economically, regardless of cash timing, providing a fuller picture of financial position (assets, liabilities) that Kenya's public sector has been progressively transitioning toward.
- International Public Sector Accounting Standards Board (IPSASB)
- Develops IPSAS, the international standards this diploma's accounting content is built on.
- Public Sector Accounting Standards Board (PSASB)
- Kenya's own body prescribing accounting standards and formats for public entities (under PSASB reporting guidelines, in the chapter on the cash basis).
- Institute of Certified Public Accountants of Kenya (ICPAK)
- The professional body for accountants in Kenya, setting professional and ethical standards for practitioners.
The rest of the sheet covers
- The conceptual framework
- Accounting for assets and liabilities
- Accounting for specialised transactions
- Preparation of financial reports
- Interests in other entities
- The cash basis and PSASB guidance
- Vote and Exchequer accounting
- Worked examples
- Exam technique and revision
- Glossary