Riyadh, December 15, 2024 – The Ministry of Finance of Saudi Arabia concluded its active participation in the highly significant meetings of the International Public Sector Accounting Standards Board (IPSASB), which were hosted in Riyadh from December 10 to 13, 2024. This important gathering brought together international experts, policymakers, and financial professionals to discuss the future of public sector accounting and the role of international standards in enhancing transparency and governance.
According to a press release issued by the Ministry of Finance, the discussions primarily focused on the strategic directions for 2024-2028, with a particular emphasis on the ongoing progress in the adoption and implementation of international accounting standards within the public sector. Participants reviewed the status of the International Public Sector Accounting Standards (IPSAS) and discussed ways to enhance their integration with government financial statistics standards, notably the Government Financial Statistics Manual (GSFM2014). The aim was to ensure greater harmonization between these standards to promote consistency and transparency in public sector financial reporting.
A significant highlight of the event was the inclusion of interactive sessions designed to provide updates on ongoing projects and discuss various technical issues related to the presentation of financial statements and the growing importance of sustainability in public sector accounting. These sessions, in collaboration with the World Bank, served as a platform to discuss how the public sector can adapt to new challenges and align with global trends in financial management and sustainability.
The Kingdom of Saudi Arabia’s experience in applying international accounting standards was also a focal point of the event. The Kingdom has made remarkable strides in adopting these standards, demonstrating its unwavering commitment to financial transparency, efficient governance, and the strengthening of public sector management practices. The Ministry of Finance emphasized how the application of these standards, including accrual accounting, has played a crucial role in improving financial planning, project management, and overall governance.
Hamad Alkanhal, the Deputy Minister for Financial Affairs and Accounts, underscored the importance of these international standards in enhancing transparency and building confidence among both local and international investors. Alkanhal highlighted that the shift to accrual accounting and other best practices has significantly contributed to the quality of financial data, improved economic stability, and supported Saudi Arabia’s broader economic vision. The adoption of these standards, he noted, not only enhances investor confidence but also plays a pivotal role in the Kingdom’s macroeconomic policies.
In addition to the formal meetings, the event also provided an opportunity for Saudi Arabia to engage with the Consultative Advisory Group (CAG), a body tasked with providing expert advice on the implementation of public sector accounting standards. During the meeting, the Kingdom’s efforts in transitioning to accrual accounting and its ongoing commitment to enhancing public financial management were underscored. The discussions also centered on proposed amendments to international accounting standards aimed at improving global public financial management practices, with an eye toward making them more relevant in today’s rapidly evolving economic landscape.
A key feature of the event was the accompanying exhibition, which provided government agencies an opportunity to showcase their achievements in 2024. Participating agencies included the National Center for Government Resources Systems (NCGR), the Government Expenditure & Projects Efficiency Authority, the Saudi Organization for Chartered and Professional Accountants (SOCPA), the National Center for Privatization, the Financial Skills Center, the Zakat, Tax and Customs Authority, the National Debt Management Center (NDMC), and the Education and Training Evaluation Commission. These agencies highlighted their contributions to the Kingdom’s efforts in advancing public financial management, promoting efficiency in government spending, and strengthening institutional capacity in public sector accounting.
The successful hosting of these meetings is another testament to Saudi Arabia’s growing influence in shaping global financial standards and its ongoing commitment to modernizing its public sector systems. By aligning with international best practices, the Kingdom is not only enhancing its own governance and financial management systems but is also setting a benchmark for other nations in the region and beyond.
As Saudi Arabia continues to implement these advanced accounting standards and practices, the Kingdom is well-positioned to further strengthen its economic stability and attract continued international investment, ultimately supporting its ambitious Vision 2030 goals for sustainable development and diversification of the economy.