. /.  RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/W/183 
1 May 2009 
 
 (09-2159) 
Committee on Budget, Finance and Administration  
  
 
IMPLEMENTATION OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING 
STANDARDS AT THE WTO 
 
 1. The Secretariat is seeking approval to start implementing International Public Sector 
Accounting Standards (IPSAS) at the WTO with the aim of issuing IPSAS compliant financial 
statements for 2012. 
BACKGROUND 
2. In the framework of a global trend towards a more efficient use of resources in public sector 
management, the IPSAS aim to provide public orga nizations with best practice standards derived 
from the International Financial Reporting Standards (IFRS) that are applied in the private sector. 
3. IPSAS encompasses more than just technical issues; it gives organizations a more realistic 
picture of their financial performance, facilitating more efficient planning, management and decision 
making while providing the means of assessing financial resilience.  It also supports transparency and 
improves comparability of financial statements ove r time and between organizations. For all these 
reasons, the WTO's external auditors have since 2007
1 recommended the adoption by the WTO of the 
IPSAS. 
4. Several Member governments and the majority of  international organizations have already 
implemented or are in the process of implementing IPSAS. 
IMPLEMENTATION PLAN 
5. In November 2007, the Secretariat establishe d an IPSAS Steering Committee, chaired by the 
Deputy Director-General in charge of Finance, to oversee the implementation of IPSAS at the WTO.  
In order to develop a project plan, an IPSAS Proj ect Team was created and an IPSAS specialist was 
recruited in July 2008.  
6. The Team has conducted a thorough analysis in 13 work areas of the gaps  between the current 
WTO accounting rules and the requirements of the IPSAS.  The resources and schedule requirements 
were estimated for each work area.  The Team finali zed the project plan in the first quarter of 2009.  
The project plan has been reviewed by the IPSA S Steering Committee and approved by the Director-
General.  
7. The project plan proposes a comprehensive a pproach intended to review and improve the 
efficiency and control of financial processes and systems, while simultaneously implementing the standards.  The plan also takes into considera tion other initiatives such as the ongoing reform of the 
procurement process and the development of the Activity Based Budgeting capacity. 
                                                     
 
1 Director General's Budgetary and Financial Report for 2006 (WT/BFA/W/157). WT/BFA/W/183 
Page 2  
 
  1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Accounting 
procedures
Project 
managementIPSAS 
implementation 
(including IT 
implementation, 
test and 
production )2012 2013 2009 2010 2011
 
Project monitoring and reportingApproval of Financial 
Rules and Re gulationsClosing 
process
Communication and trainingAccounting manual and Internal Control 
Update of 
Financial 
Rules and 
Regulation                            WAVE 2 : Fixed assets, inventory and 
employee benefits WAVE 1 : Chart of Accounts, Financial Statements, 
related parties and budget information
                           WAVE 3 : Expenses,
revenues and othersGO LIVE TEST PERIOD
ISSUANCE OF THE FIRST IPSAS FINANCIAL STATEMENTS PREREQUISITE : 
IT environment 
analysisNEW ACCOUNTING STANDARDS TO 
APPLY AS FROM 01/01/12
IPSAS 
comparative
Opening 
balance
CERTIFICATION
 
FINANCIAL IMPACT 
8. Beyond improving the WTO's financial processes and systems, adoption of IPSAS will have 
some significant impacts on financial reporting.  The most significant are in relation to employee benefits and property, pl ant and equipment (or fixed assets).  The standards will require that liabilities 
for employee benefits such as pension
2 and after-service health care be reported.  Currently these 
liabilities are not disclosed.  In addition, fixed asset s will be capitalized and depreciated.  Currently 
these types of assets are expensed and not full y disclosed in the financial statements. 
9. At this point it is anticipated that budgeting for the Organization will remain on a modified 
cash basis as is the case with most other internati onal organizations that ha ve implemented IPSAS. 
RESOURCE REQUIREMENTS 
10. The total estimated resources required for implementing IPSAS within four years is 1983 
internal man days and CHF 645,000, primarily fo r IT consulting services.  The project plan is 
designed to limit the budgetary resources required by relying on existing staff when possible. 
11. The Committee recommends to the General Council that the WTO begin the process of  
implementing the International Public Sector Ac counting Standards (IPSAS) with the objective 
of issuing IPSAS-compliant financial statements for the 2012 reporting period .  
__________  
                                                      
2 It is recalled that the Management Board of the Pension Plan, which reports to the General Council 
participants and beneficiaries, is responsible for the management and administration of the Plan, with particular regard to its actuarial balance.(Article 5 of the Plan Regulations)