IDF- Implementation of IPSAS Strategy The objective of the Grant is two-fold: (1) establishment of an adequate legal and institutional framework for adoption of the accrual basis International Public Sector Accounting Standards (IPSAS) in Armenia, and (2) capacity building in the relevant unit at the Ministry of Finance and Economy as well as chief accounts at the line ministries.  Description of the IDF-financed components and activities: The Grant proposal is structured into eight main activities, as well as into three supporting activities on training, awareness and grant audit. 1. Assessment of the existing accounting and financial reporting framework and current capacity to move to accrual basis IPSAS. 2. Translation of the accrual IPSAS. 3. Development of the accounting manual. 4. Piloting the introduction of the accrual basis IPSAS. 5. Development of the implementation strategy. 6. Development of a strategy for accountants training and qualification. 7. Design of the legislative framework. 8. Development of the training manual. 9. Training. 10. Awareness. Likely outcomes of IDF-financed activities: Te grant will assist the government, parliament and all the stakeholders to better assess the government financial position and performance. As a result, financial accountability and transparency of the State reporting on its finance will be greatly improved. The implied outcome is that the financial statements are understandable, reliable and comparable with those of the developed and developing countries. TF058039 The objective of the Grant is to establish of an adequate legal and institutional framework for adoption of the accrual basis International Public Sector Accounting Standards (IPSAS) in Armenia. Specifically the Grant will support the Ministry of Finance (i) assessing the gap between existing accounting practices and accrual basis IPSAS, (ii) translating the standards and develop the accounting manual for line ministries, (iii) piloting the introduction of the accounting standards in a line ministry and as a result develop the IPSAS implementation strategy, and (iv) designing the legislative framework. The grant will also assist in the top officials? awareness campaign on the importance and the need for the reforms. The grant will be build up on the ongoing reform on implementation of cash basis IPSAS in the public sector, with the purpose of eventual transition to the accrual basis IPSAS, which will provide understandable, reliable and, most importantly, comparable Government?s financial statements that will be prepared based on the recognized international standards. As a part of the first steps towards implementation of an accrual basis IPSAS, the grant will support translation and adaptation of accounting standards, development of accounting policy and procedures, as well as training of the key staff at the MOFE and line ministries. The grant will support implementation of initial steps of the long-term strategy and a time bound action plan to bring the accounting and financial reporting framework into compliance with international standards, which would drive a much wider reform in the public sector accounting which in turn will result in implementation of the IPSAS in the whole public sector.