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PrintReview of Capital Accounting in Local Government
The current local government capital accounting system was introduced in 1994. In 2003 CIPFA/LASAAC Joint Committee undertook the first stage of a wide ranging review of the approach to capital accounting in the Code of Practice on Local Authority Accounting in the United Kingdom (the SORP).
Subsequent to the first stage of the of the review the following changes were made to the 2004 SORP:
- refinement of the definition of non-operational assets
- updating of the provisions relating to Deferred Charges to make them more UK GAAP compliant
- adding intangible assets as a heading on the balance sheet
- renaming the Fixed Asset Restatement Reserve the Fixed Asset Restatement Account and the Capital Financing Reserve the Capital Financing Account.
CIPFA/LASAAC has now begun work on the second stage of the review, with the aim of bringing forward proposals for consultation as part of the 2006 SORP making process. As a precursor to this, the Joint Committee is consulting on the broad options for the capital financing charge (notional interest) as part of the 2005 SORP consultation.
This web page provides key documents from the first stage of the review available for download. The documents currently available are:
- Capital Accounting Review Workshop - June 2003
Summary Note of Conclusions reached by the Workshop: Word (size:79KB) | PDF (size:40KB)
- Capital Accounting Review: Interim Report - November 2002
Report: Word (size:88KB) | PDF (size:40KB)
Balance Sheet: Excel (size:33KB)
Statement of Tax Funding: Excel (size:40KB) - Project Brief - April 2002
PDF (size:60KB) | Word (size:118KB)
(For download help please visit our Technical Help page.
An evaluation of the links between capital accounting and the prudential framework
Download the recently issued discussion paper: The Role that Depreciation Could Play in Local Government Finance
If you would like further information, or to comment, on any aspect of the review please contact:
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CIPFA Policy and Technical Division |
CIPFA Scotland |