Code of Practice on Local Authority Accounting in the United Kingdom 2019/20

18-07-2018

The 2019/20 Code will apply to accounting periods starting on or after 1 April 2019. The proposed amendments in the 2019/20 Code cover changes in accounting standards and other issues on which CIPFA/LASAAC wishes to seek interested parties' views.

Note: the consultation closes on 8 October 2018. 

Issues considered in the consultation

The changes being proposed in the Invitation to Comment (ITC) are as follows:

  • Narrow scope amendments to International Financial Reporting Standards, including important amendments to IFRS 9 Financial Instruments and IAS 19 Employee Benefits 
  • legislative and policy changes 
  • updates for the IFRS Conceptual Framework for Financial Reporting (IASB March 2018)
  • the Code’s approach to adaptations/interpretations and statutory adjustments.

The consultation papers include other areas which CIPFA/LASAAC wishes to see the views of interested parties including group accounts, employee benefits, service concession arrangements (PFI/PPP arrangements) and complex financial instruments. 

Note that this is the second of two consultations on the 2019/20 Code. The consultation on IFRS 16 Leases represents a fundamental change to accounting for leases for local authorities.  Interested parties are encouraged to respond to that consultation. 

Streamlining and Simplification of the Presentation of Local Authority Financial Statements   

CIPFA is also interested in any commentaries that interested parties might have on the streamlining and simplification of local authority financial statements. Including consideration of how local authority financial statements clearly demonstrate the key messages in the statements and ensure that these messages are accessible and engage users and other key stakeholders. Please add any commentaries you might have on streamlining and simplification to the response sheet.

The Invitation to Comment (ITC) and exposure drafts of the 2019/20 Code

The Exposure Draft of the 2019/20 Code is provided as a number of files. They are listed in numerical order and follow the order of the section in the ITC in which an issue is discussed, not the section of the Code itself.

Invitation to comment

Invitation to Comment on the 2019/20 Code 

Appendix A to the ITC – Annual Improvements to IFRS Standards 2014 – 2016 Cycle

Appendix B to the ITC – Annual Improvements to IFRS Standards 2015 – 2017 Cycle

Exposure drafts (EDs)

ED A Narrow Scope Amendments to IFRS

ED B Legislative and Policy Changes 

ED C IFRS Conceptual Framework for Financial Reporting

ED D Guidance on the Approach to Drafting the Code Provisions

The Invitation to Comment summarises the proposed changes to the Code. Where CIPFA/LASAAC is interested in specific issues, consultation questions have been included in the ITC. However, CIPFA/LASAAC welcomes comments on any aspect of the draft 2019/20 Code. In order to assess comments properly, respondents are asked to support comments with clear accounting and financial reporting reasons and, where applicable, preferred alternatives. Respondents are asked to use this response sheet to respond to the consultation and so speed up the analysis.