Code of Practice on Local Authority Accounting in the United Kingdom - SORP - Invitation to Comment

The CIPFA/LASAAC Local Authority SORP Board has today released the 2009 SORP Exposure Draft and Invitation to Comment for public consultation. The 2009 SORP would apply to accounting periods starting on or after 1 April 2009. The proposed developments are:

(a) Adopting requirements for accounting for PFI schemes and similar arrangements that are consistent with the adaptation of IFRIC 12 Service Concession Arrangements contained in the Government's 2009/10 Financial Reporting Manual (FReM) and Whole of Government Accounts' requirements.

(b) Including more detailed and in some respects different requirements for accounting for council tax and national non-domestic rates in England, Scotland and Wales and rates in Northern Ireland.

(c) Removal of larger parishes and community councils from the list of bodies to which the SORP applies.

(d) Accounting for reorganised local authorities.

(e) Other minor amendments.

Comments on the SORP Invitation to Comment are invited by 8 February 2009.

Invitation to comment (22 pages)
Extract of ITC Questions (5 pages)
2009 SORP Exposure Draft (26 pages)

Consultation on the Future Governance Framework for the Code of Practice on Local Authority Accounting in the United Kingdom

The CIPFA/LASAAC Local Authority SORP Board, which develops the Code of Practice on Local Authority Accounting in the United Kingdom (the Code), recently announced its decision to implement International Financial Reporting Standards in the Code from 2010/11. Following this decision, CIPFA/LASAAC is now considering whether the Code should continue to be prepared under the aegis of the UK Accounting Standards Board (ASB). Any change would apply from the 2010/11 Code onwards.

The alternative to an ASB-linked governance framework would be a framework linked with the Financial Reporting Advisory Board (FRAB), the independent body that overseas central government and NHS accounting guidance. Under both options, CIPFA/LASAAC would continue to be responsible for producing the Code, and CIPFA would continue to produce the Guidance Notes for Practitioners, so there would be little practical impact from the practitioner perspective.

CIPFA/LASAAC is seeking comments by Thursday 20 March before taking a final decision whether to recommend this change to Ministers in England, Scotland, Wales and Northern Ireland. We would therefore be grateful to receive your comments on the proposals put forward in the accompanying consultation paper. Please sent your comments to colin.stratton@cipfa.org.

DOWNLOAD: Consultation Paper (27 pages) - Word [317KB] | PDF [133KB]