Consultation on the Future Governance Framework for the Code of Practice on Local Authority Accounting in the United Kingdom

The CIPFA/LASAAC Local Authority SORP Board, which develops the Code of Practice on Local Authority Accounting in the United Kingdom (the Code), recently announced its decision to implement International Financial Reporting Standards in the Code from 2010/11. Following this decision, CIPFA/LASAAC is now considering whether the Code should continue to be prepared under the aegis of the UK Accounting Standards Board (ASB). Any change would apply from the 2010/11 Code onwards.

The alternative to an ASB-linked governance framework would be a framework linked with the Financial Reporting Advisory Board (FRAB), the independent body that overseas central government and NHS accounting guidance. Under both options, CIPFA/LASAAC would continue to be responsible for producing the Code, and CIPFA would continue to produce the Guidance Notes for Practitioners, so there would be little practical impact from the practitioner perspective.

CIPFA/LASAAC is seeking comments by Thursday 20 March before taking a final decision whether to recommend this change to Ministers in England, Scotland, Wales and Northern Ireland. We would therefore be grateful to receive your comments on the proposals put forward in the accompanying consultation paper. Please sent your comments to colin.stratton@cipfa.org.

DOWNLOAD: Consultation Paper (27 pages) - Word [317KB] | PDF [133KB]

SORP 2008 Invitation to Comment

The CIPFA/LASAAC Local Authority SORP Board has today released the 2008 SORP Exposure Draft and Invitation to Comment for public consultation. The 2008 SORP would apply to accounting periods starting on or after 1 April 2008. The proposed developments are:

• amendments to reflect GAAP developments since the SORP was last updated
• amendments to Chapter 8 Statement on Internal Control and the Statement of Internal Financial Control to reflect changes in good practice guidance
• amendments to reflect that there are difference in the regulations on the funding of the police and firefighters’ pension schemes.
• amendments to reflect that the Landfill Allowances Scheme in Scotland becomes a ‘cap and trade’ scheme from 1 April 2008
• clarifying amendments to the section on Deferred Charges
• clarifying amendments to the section on Intangible Assets (Excluding Goodwill and Development Expenditure)
• a new section on Back Pay Arising from Unequal Pay Claims
• amendments to the section on the ‘Authorised for issue date’
• amendments to reflect the ending of Local Area Agreement Grant and its replacement with Area Based Grant in 2008/09.

Comments on the SORP Invitation to Comment are invited by 30 January 2008.

DOWNLOAD: Invitation to Comment (19 pages) - Word [306KB] | PDF [98KB]
DOWNLOAD: Invitation to Comment Questions (12 pages) - Word [149KB]
DOWNLOAD: 2008 SORP Exposure Draft (211 pages) - PDF [935KB]