Responding to COVID-19: insight, support and guidance

The Statutory Basis for Accounting for and Disclosing Reserves in Scottish Local Government Bodies Revised 2020


In October 2005, LASAAC issued guidance on the accounting treatment, disclosure requirements, and legislative basis for reserves and funds in local authorities in Scotland. There have been a number of changes in the financial reporting framework in the 15 years since the guidance was issued. LASAAC has therefore revised and updated the guidance to make sure it remains fit for purpose.

LASAAC invites comments on a consultation draft of the revised guidance which should be sent to by 29 January 2021. Comments are particularly welcome on the following:

1. The recommended distinction between mandatory and discretionary earmarking (paragraph 20)

2. The new requirement to separately disclose any deferred capital receipts (paragraph 30)

3. The guidance on the treatment of capital expenditure funded from the Renewal and Repair Fund (paragraph 32)

4. The specified treatment for the valuation element of depreciation (paragraph 50)

5. The requirement to disclose earmarked elements of the General Fund (paragraph 54)

6. Are there any other areas related to accounting for reserves on which guidance would be helpful?

LASAAC Statutory Basis for Reserves Mandatory Guidance Consultation-draft


Download now