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PrintAccounting for financial instruments in local government
UPDATE: 17 November 2006
SORP 2007 Invitation to Comment
The CIPFA/LASAAC Joint Committee invites comments on proposed changes to the local authority SORP.
DOWNLOAD: Invitation to Comment (Word doc, 555K)
DOWNLOAD: Exposure Draft of New Financial Instruments Chapter (PDF, 136K)
DOWNLOAD: Exposure Draft of Other Changes to the SORP (PDF, 618K)
DOWNLOAD: Abstract of ITC Questions (Word doc, 103K)
Proposed 2007 SORP Amendments
The proposed changes that would apply to accounting periods commencing on or after 1 April 2007 are:
- new requirements for accounting for and disclosing financial instruments based on the new financial instruments standards FRS 25, FRS 26 and FRS 29
- other changes resulting from recent accounting standards developments
- changes resulting from legislative developments, in particular the pooling where there is a Local Area Agreement of some previously separate central government funding streams into Local Area Agreement Grant
- additional disclosure requirements where a local authority consolidates trust funds into its group accounts
- changing the SORP’s classification of the Northern Ireland Local Government Officers Superannuation scheme from defined contribution to defined benefit
- updating the paragraphs that identify the bodies to which the SORP applies in order to bring them more clearly into line with legislative provision
- amending the requirements that were included in Appendix G of the 2006 SORP concerning the establishment of a Revaluation Reserve on 1 April 2007 to require a zero opening balance on the reserve.
Comments on the SORP Invitation to Comment are invited by 14 February 2007. Please send your comments, preferably by email, to (sorp.responses@cipfa.org) or to the Secretary CIPFA/LASAAC Joint Committee, c/o Policy and Technical Directorate, 3 Robert Street, London, WC2N 6RL, or by fax to 020 7543 5695.