PrintIFRS-based Code of Practice on Local Authority Accounting - Code Update Report
Introduction
Local Authority Code Update Reports outline the latest position regarding the development of the IFRS-based Code of Practice on Local Authority Accounting (the Code), which will apply to local authority accounts from 1 April 2010. The report summarises the requirements of the international financial reporting standards and the impact these will have on the Code.
Code Update Reports can be downloaded here.
There is also to be a new governance framework for the Code of Practice on Local Authority Accounting. Following a consultation exercise during the first quarter of 2008, CIPFA/LASAAC has announced that the Code for 2010/11 will be prepared under the oversight of the Financial Reporting Advisory Board (FRAB) rather than the 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).
The terms of reference for CIPFA/LASAAC and the FRAB, and the Memorandum of Understanding between FRAB bodies can be found here.
The new governance framework formalises a common accounting standards setting hierarchy across most of the UK public sector. At the top of the hierarchy is EU-adopted IFRS; next are International Public Sector Accounting Standards (IPSAS), followed by UK standards.
The IFRS-based Code of Practice on Local Authority Accounting is therefore based on the accounting standards issued by various standard setting bodies. Details of the international bodies, and the standards they approve, are given here.