IFRS – IPSAS – Tools for corporate Governance & Government Governance

Government owns huge intangible assets and scams predominantly happen in intangible assets. Recently CAG had been valuing intangible assets like spectrum at FAIR VALUE, which is precise base of IFRS. Should we expect further unearthing of scams?  If so, in which intangible assets?

Time has come to look at some reporting as a TOOL FOR CORPORATE GOVERNANCE and for that matter, even GOVERNMENT GOVERNANCE

So I title this article as IFRS – IPSAS – Tools for corporate Governance & Government Governance

As a proud cost accountant, I always referred MIS report when I was CFO/Finance Director and used to refer financial accounts at year-end or quarter-end as per legal needs.

Same was the case with my owners/promoters & MDs.

Meaning of SCAM word is now known to everybody. It is essential to add here that IFRS in spirit goes for corporate governance and forces an organization to report in a transparent fashion to aim at corporate governance. IFRS is adopted by 120+ countries, while most of these countries are almost fully privatized. So there is a necessity for a country like India which has lots of tangible and more so, intangible assets in the hands of Govt sector, must have NOT just reporting tool for corporate governance but also for Government Governance.

While IFRS will serve purpose of corporate governance based reporting, IPSAS is International public sector accounting standard which is a tool for transparent report for government bodies. So India needs both.

Pertinent to answer following questions here.

Intangible assets are lying with public sector. Here is a humble attempt which can help whether CAG or Anna Hazare by linking various intangible assets with various ministries.

No INTANGIBLE ASSETS GOVT OF INDIA ministries
www.intangiblebusiness.com/ www.mapsofindia.com/election/list-of-portfolios.html
1  Airport gates and slots Ministry of Aviation
2  Bank  customers -loan, trust and credit card Ministry of Finance
3  Blueprints Minister of Human Resource Development,Minister of
Communications and Information Technology
4  Book libraries  
5  Brand names  
6  Broadcast licenses Minister of Human Resource Development, Minister of
Communications and Information Technology
7  Buy-sell agreements MMTC/STC etc
8  Certificates of need  
9  Chemical formulas Minister of Chemicals and Fertilizers
10  Computer software Minister of Human Resource Development, Minister of
Communications and Information Technology
11  Computerized databases Minister of Human Resource Development, Minister of
Communications and Information Technology
12  Contracts  
13  Cooperative agreements Co-operative societies body
14  Copyrights Minister of Human Resource Development, Minister of
Communications and Information Technology
15  Credit information files Finance ministry
16  Customer contracts Ministry Consumer Affairs, Food & Public Distribution
17  Customer & client lists Ministry Consumer Affairs, Food & Public Distribution
18  Customer relationships Ministry Consumer Affairs, Food & Public Distribution
19  Designs & drawings Various
20  Development rights Urban development
21  Distribution networks Telecom
22  Distribution rights telecom, power, etc
23  Drilling rights Mining
24  Easements urban developments
25  Employment contracts Minister of Labour and Employment
26  Engineering drawings Various
27  Environmental rights Ministry of Environment & Forests
28  FCC licenses food, licence
29  Favorable financing Finance ministry
30  Favorable leases land ceiling, urban development
31  Film libraries Media
32  Food flavorings & recipes Ministry Consumer Affairs, Food & Public Distribution
33 , Franchise
agreements
Ministry of Commerce and Industry
34  Historical documents Ministry of Tourism
35  HMO enrollment lists Various
36  Insurance expirations Ministry Consumer Affairs, Food & Public Distribution
37  Insurance in force Ministry Consumer Affairs, Food & Public Distribution
38  Joint ventures Various
39  Know-how Various
40  Laboratory notebooks Various
41  Landing rights Ministry of Aviation
42  Leasehold interests Minister of Commerce and Industry
43  Literary works Ministry of Tourism
44  Loan portfolios Finance ministry
45  Location value Urban development, land, mining
46  Management contracts Ministry of Commerce and Industry
47  Manual databases Manuscripts Various
48  Medical charts and records Ministry of Health and Family Welfare
49  Mineral rights Minister of Mines and Minister of Development of North Eastern
Region
50  Musical compositions Media
51  Natural resources Minister of Mines and Minister of Development of North Eastern Region
52  Newspaper morgue files Media
53  Non compete covenants Various
54  Options,
warrants,  grants, rights
Various
55  Patent applications Minister of Commerce and Industry
56  Patents – both  product process Minister of Commerce and Industry
57  Patterns Various
58  Permits licence, permits, quota
59  Prescription drug files Ministry of Health and Family Welfare
60  Prizes and awards Home
61  Procedural manuals Various
62  Production backlogs Various
63  Product designs Various
64  Property use rights Urban development, land, mining
65  Proposals outstanding ????
66  Proprietary computer Software Minister of Human Resource Development, Minister of
Communications and Information Technology
67  Proprietary processes ????
68  Proprietary products Ministry Consumer Affairs, Food & Public Distribution
69  Proprietary technology Ministry Consumer Affairs, Food & Public Distribution
70  Publications Ministry of Communications and Information Technology
71  Retail shelf space Various
72  Royalty agreements foreign affairs
73  Schematics & diagrams Various
74  Securities portfolios Minister of Human Resource Development, Minister of
Communications and Information Technology
75  Security interests Minister of Human Resource Development, Minister of
Communications and Information Technology
76  Shareholder agreements ????
77  Stock & bond instruments Ministry of Commerce and Industry
78 Solicitation rights Minister of Law and Justice
79  Subscription lists ????
80  Supplier contracts Ministry of Commerce and Industry
81  Technical & specialty Libraries scientific research
82  Technical documentation scientific research
83  Technology sharing agreements foreign affairs
84  Title plants ???
85  Trade secrets home, defence
86  Trained & assembled workforce Ministry of Commerce and Industry
87  Trademark and trade names Ministry of Commerce and Industry
88  Training manuals Minister of Human Resource Development, Minister of
Communications and Information Technology
89  Use rights – air, water, land Ministry of Environment & Forests
90 FSI urban
development
91 TDR urban
development

 So come to think of it,

1.    Spectrum is a well-known intangible asset which will get disclosed by IFRS in corporate accounts & IPSAS in Government accounts.

2.    Power, mining, land development rights are solely within preview of public sector and IPSAS will throw light on it.

We have lots of Cost & management accountants in public sector and I am sure they will carry this message for Government governance.

Taxclick Team
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