GAZETTE NOTICE NO. 5440

the following Financial Reporting Standards: 2.1.1. The International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board for application by state corporations and county corporations carrying on commercial activities. 2.1.2 The International Public Sector Accounting Standards (IPSAS) issued by the International Public Sector Accounting Standards Board for application by all national government entities and county government entities including technical colleges, teacher training colleges and public funds, but not state corporations carrying on commercial activities. 2.1.3 The national government, county governments, national government entities and county government entities, including projects, shall apply International Public Sector Accounting Standards Board accrual-based standards with effect from the 1st July, 2024. The final financial statements to be prepared on a cash basis by the national government, county governments, national government entities and county government entities shall be for the Financial Year 2023/2024. Consequently, financial statements for the year ending 30th June, 2025, shall be prepared on the accrual basis of accounting. 2.2 The Board shall periodically review and prescribe applicable financial reporting standards including the progressive application of accrual-based International Public Sector Accounting Standards by the national government, county governments, national government entities, and county government entities. 3.0 INTERNAL AUDITING STANDARDS 3.1 The Board has approved for adoption and application the International Professional Practices Framework (IPPF) for Internal Auditing Standards by the Institute of Internal Auditors by all State organs and public sector entities. 30th August, 2024 THE KENYA GAZETTE 4.0 TRANSITION FROM IPSAS CASH ACCOUNTING BASIS TO IPSAS ACCRUAL ACCOUNTING BASIS BY NATIONAL GOVERNMENT ENTITIES AND COUNTY GOVERNMENT ENTITIES 4.1 In the progressive application of IPSAS Accrual Standards in accordance with paragraph 2.2, the Board, in consultation with the National Treasury, prescribes the following: (a) the final financial statements to be prepared under IPSAS cash basis of accounting shall be the period ended the 30th June, 2024; (b) the Board shall provide financial reporting templates to enable the national government entities and county government entities to comply with the IPSAS accrual basis of accounting; (c) the National Treasury shall issue guidelines on transition arrangements including accounting and measurement for assets and liabilities and a revised Standards Chart of Accounts (SCOA); (d) training and capacity building shall be conducted during the transition period; and (e) all public sector entities shall have three (3) years to comply fully with the accrual basis of accounting in line with IPSAS 33: First Time Adoption of IPSAS. Consequently, the financial statements for the period ending the 30th June, 2027, should be fully compliant with IPSAS accrual basis of accounting as prescribed by the Board. 5.0 EFFECTIVE DATE FOR THE ADOPTION AND APPLICATION OF THE STANDARDS 5.1 The standards specified in paragraph 2.0 and 3.0 shall continue to be applied as adopted on the 8th August, 2014, except for the standards specified in paragraph 2.1.3. 5.2 The standards specified in paragraph 2.1.3 shall be applied with effect from the 1st July, 2024. 6.0 REVOCATION