What is the purpose of the International Public Sector Accounting Standards Board (IPSASB)?

The International Public Sector Accounting Standards Board (IPSASB) is primarily established to develop international public sector accounting standards. Its goal is to enhance the quality and consistency of financial reporting in the public sector across different nations. By creating a set of globally recognized accounting standards, IPSASB seeks to improve transparency and accountability in public sector financial management, which is essential for good governance and public trust.

These standards support governments and other public sector entities in maintaining accurate and reliable financial records, which can then be used for better planning, decision-making, and resource allocation. The development of these standards also facilitates comparisons of public sector financial information across different countries, promoting best practices and improving public financial management globally.

In contrast, the other options focus on areas outside the IPSASB's primary mission. For instance, formulating rules for the non-profit sector is not the main focus of the IPSASB, as its scope is specifically tailored to public sector entities. Overseeing accounting practices in the private sector is the responsibility of other regulatory bodies, such as the International Accounting Standards Board (IASB), which addresses private sector reporting standards. Lastly, while auditing standards for local governments have their importance, they fall outside the IPSASB's specific duty of developing accounting