The International Public Sector Accounting Standards (IPSAS) are becoming increasingly important and prompting better and more comparable financial reporting by public sector institutions around the world. 

Uniform accounting principles are meant to facilitate the preparation of consolidated financial statements and make it easier to procure capital for the public sector.

Because they closely follow the International Financial Reporting Standards (IFRS), IPSAS are a set of rules that is well understood and recognized the world over.

These standards offer international non-profit organizations (NPOs) a valuable framework for ensuring globally transparent financial reporting.

IPSAS-based financial reporting can establish trust, create transparency and also make it possible to tap new sources of funding. 

Harmonized Accounting Model (HAM2)

The Harmonized Accounting Model (HAM2) shifts the focus of accounting by public sector institutions toward a more business-based perspective.

In light of developments in public sector accounting (new public management, cost-accounting approaches) and stronger influence of the IPSAS, a revision of the accounting principles applied by the public sector was inevitable.

HAM2 is the harmonized public sector accounting model and a mandatory minimum standard for all municipalities and cantons in Switzerland. The chart of accounts set forth in HAM2 has been harmonized with that of the federal government and meets the requirements of financial statistics.

It demands a true and fair view based on the International Public Sector Accounting Standards (IPSAS) yet still offers greater latitude. It not only permits accrual accounting but also still allows the creation of hidden reserves.

KPMG’s expertise & services

  • Official publisher of the authorized German translation of IPSAS. 
  • Auditing of public sector institutions
  • Support on matters related to accounting and reporting
  • Interdisciplinary project teams for redesigning processes and IT environments
  • Legal and procedural guidance during mergers or transformations of public sector institutions
  • Roll-out and review of planning and control instruments

Discover more