| CIPFA/LASAAC has announced a new governance framework for the Code of Practice on Local Authority Accounting. The new Code for 2010/11, when local authorities will complete their transition to IFRS-based reporting, will be prepared under the oversight of the Financial Reporting Advisory Board (FRAB) rather than the Accounting Standards Board (ASB) as for previous years.
Under the new governance framework CIPFA/LASAAC remains the accounting standard setter for local authorities. The Code will also continue to be the authoritative source of accounting guidance for local authorities across the UK, although it will no longer be badged as a Statement of Recommended Practice (SORP).
Nick Bennett, Public Sector partner at Scott-Moncrieff and Chair of CIPFA/LASAAC* said:
‘The new FRAB-linked framework for the Code will allow local government to participate directly in the same standard setting process as central government and the NHS for the first time. I am delighted that we have also been able to bring the best of the ASB’s regime into the new framework.’
The new governance framework will also formalise certain aspects of the FRAB’s processes. In particular the role of International Public Sector Accounting Standards (IPSASs) will be specified for the first time. The EU-adopted versions of IFRS remain the top level in the UK public sector accounting standard setting hierarchy. IPSAS will be used to assess any interpretations or adaptations for the public sector context.
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Contact: Guy Roberts / Lindsay Machin / Tony Koutsoumbos
CIPFA Press Office, tel: 020 7543 5712 / 5645 /5732
email: guy.roberts@cipfa.org / lindsay.machin@gipfa.org / tony.koutsoumbos@cipfa.org
Notes to Editors:
* The CIPFA/LASAAC (Chartered Institute of Pubic Finance and Accountancy / Local Authority (Scotland) Accounts Advisory Committee) Local Authority SORP Board is responsible for development of the Code of Practice on Local Authority Accounting. Under various local government acts the Code constitutes a 'proper accounting practice'.
- The FRAB is an independent body set up in 1996 initially to oversee the Treasury Resource Accounting Manual, which set out how Government departments should prepare their resource accounts. The Board’s remit has been extended since its inception and now includes advice on financial and reporting standards and principles in respect of:
- Executive non-departmental public bodies and trading funds;
- Accounts for which the Scottish Ministers and the Department of Finance and Personnel, Northern Ireland are responsible for issuing reporting requirements;
- Accounts of the National Health Service Trusts in England, Northern Ireland and Wales;
- Advice on accounting policies underlying Whole of Government Accounts;
- NHS Trusts in England, Wales, Northern Ireland and
- NHS Foundation Trusts.
- IPSAS are set by the International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting body designated by, and operating under the auspices of, the International Federation of Accountants (IFAC). The IPSASB’s goal is to serve the public interest by developing high quality accounting standards for use by public sector entities around the world in the preparation of general purpose financial statements. This will enhance the quality and transparency of public sector financial reporting and strengthen public confidence in public sector financial management. In pursuit of this objective, as well as developing IPSAS following a rigorous and transparent due process, the IPSASB supports the convergence of international and national public sector accounting standards and the convergence of accounting and statistical bases of financial reporting where appropriate.
- Details of CIPFA’s IFRS training programme can be found at: www.cipfa.org.uk/
- The Chartered Institute of Public Finance and Accountancy (CIPFA) is one of the leading professional accountancy bodies in the UK and the only one which specialises in the public services. It is responsible for the education and training of professional accountants and for their regulation through the setting and monitoring of professional standards. Uniquely among the professional accountancy bodies in the UK, CIPFA has responsibility for setting accounting standards for a significant part of the economy, namely local government. CIPFA’s members work (often at the most senior level) in the public service bodies, in the national audit agencies and major accountancy firms. They are respected throughout for their high technical and ethical standards and professional integrity. CIPFA also provides a range of high quality advisory, information and training and consultancy services to public service organisations. As such, CIPFA is the leading independent commentator on managing and accounting for public money.
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