Find out more about the Code of Practice on Local Authority Accounting in the United Kingdom (the Code), prepared by the CIPFA/LASAAC Local Authority Code Board (CIPFA/LASAAC).
Local authorities in the United Kingdom are required to keep their accounts in accordance with ‘proper practices’. This is defined, for the purposes of local government legislation, as meaning compliance with the terms of the Code of Practice on Local Authority Accounting in the United Kingdom.
The Code specifies the principles and practices of accounting required to prepare a Statement of Accounts that gives a true and fair view of the financial position and transactions of a local authority.
The Code is reviewed continually and is normally updated annually. The 2016/17 Code has been developed by the CIPFA/LASAAC Local Authority Code Board and has effect for financial years commencing on or after 1 April 2016.
Following a consultation in July to October 2015, CIPFA/LASAAC issued the 2016/17 Code.
Purchase the Code of Practice on Local Authority Accounting in the United Kingdom 2016/17
2016/17 Code – Code of Practice on Local Authority Accounting in the United Kingdom
CIPFA/LASAAC has also issued informal comments on the amendments to the Code following the consultation process. Please note that this informal commentary does not form any part of the 2016/17 Code.
Technical Information Note 16 (01) – The Code of Practice on Local Authority Accounting in the United Kingdom (the Code); Informal Commentary on the Amendments to the 2016/17 Code following consultation (PDF, 176 KB)
Please note that paragraphs 10 to 14 of Technical Information Note 16 (01) will not apply to the 2016/17 financial year following the issue of the Update to the 2016/17 Code (below).
Following its decision to postpone implementation of the new measurement requirements for the Highways Network Asset until the 2017/18 year, CIPFA/LASAAC has issued the Update to the 2016/17 Code of Practice on Local Authority Accounting in the United Kingdom (the Code).
For more on the decision to postpone the measurement requirements please see the announcement issued by CIPFA/LASAAC on 14 November 2016; Update from the CIPFA/LASAAC Local Authority Code Board on the Measurement of the Highways Network Asset (PDF, 167 KB).
The Update to the 2016/17 Code reverses the previous implementation provisions for the new measurement requirements in the 2016/17 Code. References to the Highways Network Asset will no longer apply for the 2016/17 year. This will mean that the infrastructure class of assets for 2016/17 will continue to be accounted for as in previous years ie at depreciated historical cost (and it will include the components of the Highways Network Asset).
The Update to the 2016/17 Code must be read in conjunction with the 2016/17 Code published by CIPFA on 1 April 2016. The Update includes instructions and tracked changes to appropriate extracts of the 2016/17 Code with both new and amended paragraphs to form the revised 2016/17 Code.
Download Update to 2016/17 Code (PDF, 0.6 MB)
Please note, although the approval process for the Update to the 2016/17 Code is complete the Statement from the Chair FRAB is not yet available. However, CIPFA considers that it is necessary to issue the Update to the 2016/17 Code as soon as possible.
As is indicated in the Update from the CIPFA/LASAAC Local Authority Code Board on the Measurement of the Highways Network Asset (PDF, 167 KB), it will review its decision on implementation at its meeting in March 2017 with a view to implementation in 2017/18. In making its decision in March CIPFA/LASAAC will be looking to ensure that central Gross Replacement Cost rates and central assurance processes will be delivered in a timely manner to allow successful implementation. The announcement will be made following its March meeting on the CIPFA/LASAAC webpages and communicated via Treasurers’ Societies.
Under its governance framework, CIPFA/LASAAC remains the accounting standard setter for local authorities. The Code also continues to be the authoritative source of accounting guidance for local authorities across the UK.
Download the CIPFA/LASAAC Constitution for the Board's terms of reference. The Financial Reporting Advisory Board (FRAB) and the Memorandum of Understanding between FRAB bodies can be found on HM Treasury’s website.