What is public sector accounting?

Public sector accounting is an accounting method used in central and local governments and other nonprofit pursuant public sector entities. The International Public Sector Accounting Standards Board, known also by the acronym of IPSASB, develops the standards in accounting for entities in the public sector worldwide.

The goals of the IPSASB are to establish their high quality standards and in the convergence internationally to those standards. They also intend to offer provisions of information and guidance on financial reporting matters in the public sector. They encourage the accrual basis of accounting to increase transparency and financial management for all public sector entities.