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.

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 2015/16 Code has been developed by the CIPFA/LASAAC Local Authority Code Board and has effect for financial years commencing on or after 1 April 2015.

Following a consultation in July to October 2014, CIPFA/LASAAC issued the 2015/16 Code.

Purchase the Code of Practice on Local Authority Accounting in the United Kingdom 2015/16

2015/16 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 2015/16 Code.

Technical Issues Note 15 (01) – The Code of Practice on Local Authority Accounting in the United Kingdom (the Code); Informal Commentary on the Amendments to the 2015/16 Code following Consultation (PDF, 127 KB)

Update to the 2015/16 Code of Practice on Local Authority Accounting in the United Kingdom

Following its consultation on the 2016/17 Code, CIPFA/LASAAC decided to introduce specific transitional reporting requirements for the measurement of the Highways Network Asset that relate to the production of preceding year information (ie 2015/16) and confirm these reporting requirements in an update to the 2015/16 Code. For more on the move to the measurement of the Highways Network Asset at current value, please see the first in a series of briefings, which can be found on the Highways Network Asset section of the CIPFA website.

Please note: the update to the 2015/16 Code confirms that the Code does not require a change to the preceding year information for the move to measuring the Highways Network Asset at current value (and under that provision would not require a change to the balance sheet information at 1 April 2015). It also does not require a restatement of the opening 1 April 2016 information, but there will need to be an adjustment to those balances.

The update to the 2015/16 Code also includes amendments as a result of legislative changes and particularly the Accounts and Audit Regulations 2015 for English authorities, and it specifies the principles for narrative reporting that CIPFA/LASAAC considers should be used to meet the new requirements of those regulations. The update to the 2015/16 Code also includes amendments relating to the Local Government (Accounts and Audit) Regulations (Northern Ireland) 2015.

The update to the 2015/16 Code must be read in conjunction with the 2015/16 Code published by CIPFA on 1 April 2015. The tracked changes to appropriate extracts of the 2015/16 Code include both new and amended paragraphs to form the update to the 2015/16 Code.

Download the Update to the 2015/16 Code
 
Note: the statement on the update to the 2015/16 Code was signed by the chair of the Financial Reporting Advisory Board on 13 January 2015. Any queries relating to the statement should be referred to the Secretary of CIPFA/LASAAC Sarah Sheen.

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

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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)

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.