IFRS-based Code

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.

cover - code

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).

Update to the 2016/17 Code –  CIPFA/LASAAC's Decisions on the Measurement Requirements of the Highways Network Asset

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).  Please note, this was followed by a further Statement on Implementation by CIPFA/LASAAC on 10 March 2017 (PDF, 212 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 also includes those changes introduced by statutory provisions after the 2016/17 Code was published ie:

  • the Housing Revenue Account (Accounting Practices) Directions 2016 disclosure requirements for English housing authorities, and 
  • the Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016.

Update to the 2016/17 Code

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,  the Update to the 2016/17 Code does not include the Statement from the FRAB Chair.  For further enquiries about the FRAB Statement please contact the CIPFA/LASAAC Secretary

Governance framework to the Code

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.