laap bulletin 82 – guidance on the impairment of deposits with icelandic banks

11-02-2014

Following the successful debt auction of local authority Landsbanki debt through the LGA, (Press Release) CIPFA has no current plans to provide any further updates to Bulletin 82.  Update Number 2 provided details of the accounting entries for the disposal of a deposit.

Update number 8

(updated 13/09/13)

This update to LAAP 82 sets out the position in respect of Heritable Bank plc as at September 2013 and provides guidance on estimating the impairments based on this latest position. The position for the remaining banks has not changed from that estimated in  update Number 7.

Update number 7 (amended)

(updated 28/05/13)

Following the announcement by the Kaupthing Singer & Friedlander Ltd administrators on 22 May, Update 7 to LAAP 82 has been amended.  The confirmed dividend to be paid on 6 June is for 3% rather than the 2% estimated previously and so the Bulletin has been updated accordingly.  Practitioners are reminded to have regard to paragraphs 2 and 3 in this Bulletin which relate to events after the balance sheet date and materiality.

Update number 7

(updated 20/05/13)

The following update number 7 to LAAP Bulletin 82 updates the information in that bulletin for developments that have taken place since update number 6 was issued, up to May 2013.

The update includes the latest estimates of the recoverable amounts for the banks and details of the exchange rate and escrow account implications for the Iceland-domiciled banks.

LAAP Bulletin 82 Update 7 (PDF, 125 KB)

Accompanying Spreadsheet (Excel, 136 KB)

Update number 6

(updated 12/06/12)

The following update number 6 to LAAP Bulletin 82 updates the information in that bulletin for developments that have taken place since the bulletin was issued, up to May 2012.

The update includes the latest estimates of the recoverable amounts for the banks and also the exchange rate and escrow account implications for the Iceland-domiciled banks.

Download LAAP Bulletin 82 Update 6 (PDF, 230 KB)
Accompanying spreadsheet (Excel, 143 KB)

Update number 5

The following update to LAAP Bulletin 82 updates the information in that bulletin for developments that have taken place since the bulletin was issued, up to September 2011.

All estimates apart from Heritable remain as per the May 2011 update.  For Heritable there are changes to the estimated recovery and also the timings.  Whilst these are not expected to be material it is for authorities to determine whether this is material in their particular circumstances.  They need not adjust the accounts where the amount is not judged to be material.

In relation to the Iceland-Domiciled Banks the appeals to the Icelandic Supreme Court have yet to be concluded and hence there are no changes to the estimates in relation to Iceland-domiciled banks.  If required, a further update will be issued once the appeal verdict is announced.

Download LAAP Bulletin 82 Update 5 (PDF, 68KB)
Accompanying spreadsheet (updated) (Excel, 101KB)

Update number 4

The following update to LAAP Bulletin 82 updates the information in that bulletin for developments that have taken place since the bulletin was issued, up to May 2011

Practitioners should consider the accounting treatment for any impaired Icelandic deposits against the requirements of all the updates of LAAP Bulletin 82 and particularly the first edition of LAAP Bulletin 82 which sets out the recommended accounting treatment (including example accounting entries up to 2013/14). Practitioners need to consider these Bulletins taking into account the particular circumstances for their local authority and the requirements of the regulations - see the Code of Practice on Local Authority Accounting in the United Kingdom 2010/11 Appendix B for the legislative basis. 

Practitioners in England are reminded that the regulations that permit authorities to defer the impact of the impairment on the General Fund only allow this deferment until the 2010/11 financial year. 

Practitioners in Wales should note that the regulations that permit authorities to defer the impact of the impairment on the General Fund only allow this deferment until the 2011/12 financial year.

The Bulletin has now been finalised following the announcement of the sixth dividend for KSF. The estimates have not been changed from the draft Bulletin.

Download LAAP Bulletin 82 Update 4 (PDF, 96KB)
Accompanying spreadsheet (updated) (Excel, 105KB)

Update number 3

The following update to LAAP Bulletin 82 updates the information in that bulletin for developments that have taken place since the bulletin was issued, up to September 2010.

Download LAAP Bulletin 82 Update 3 (PDF, 70KB)
Accompanying spreadsheet (updated) (Excel, 97KB)

Update number 2

The following update to LAAP Bulletin 82 updates the information in that bulletin for developments that have taken place since the bulletin was issued, up to May 2010.

Download LAAP Bulletin 82 Update 2 (PDF, 170KB)
Accompanying spreadsheet (updated) (Excel, 98KB)

Update number 1

The following update to LAAP Bulletin 82 updates the information in that bulletin for developments that have taken place since the bulletin was issued, up to the end of August 2009.
 
Download LAAP Bulletin 82 Update 1 (PDF, 71KB)
Accompanying spreadsheet (updated) (Excel, 31KB)

LAAP Bulletin 82

This bulletin provides further information regarding the impairment of deposits with Icelandic Banks to be recognised in authorities' 2008/09 accounts. The bulletin recommends levels of impairment for each of the banks with which authorities have deposits, based on information published at the date the bulletin was issued. Authorities may find the accompanying spreadsheet helpful in calculating the impairments.

Download LAAP Bulletin 82 (PDF, 146KB)
Accompanying spreadsheet (Excel, 43KB)