News and activity

Summaries of Local Authority (Scotland) Accounts Advisory Committee (LASAAC) news and activities

LASAAC statement on the deferral of IFRS 16 leases

22 April 2022

A preliminary decision and feedback statement has been released following CIPFA LASAAC's emergency consultation on exploratory proposals for changing the Code of Practice on Local Authority Accounting in the United Kingdom. The decision has subsequently been considered by the government's Financial Reporting Advisory Board (FRAB), who agreed with the deferral of IFRS 16 Leases until 1 April 2024. FRAB also advised CIPFA LASAAC that the code had to allow, and should encourage, local authorities to adopt the standard before this date should they wish to.

LASAAC was not initially supportive of further deferral, stating that it "undermines the core objective of CIPFA/LASAAC to advance high-quality financial reporting in local government. However, LASAAC may support further deferral if the wider public sector requested it.

"LASAAC's view remains that IFRS 16 remains the best form of reporting local authority leases, and shares FRAB's objective of promoting excellence in financial reporting. The decision to defer IFRS 16 is a pragmatic response due to the severe delays in the publication of audited local authority financial statements in England. The decision should not be viewed as a commentary on the usefulness of the information derived from the implementation of the standard."

After consulting with LASAAC, CIPFA LASAAC has followed its preliminary decision with its formal decision: to defer the implementation of IFRS 16 until 1 April 2024 (and therefore in the 2024/25 Code). However, both the 2022/23 and the 2023/24 Codes will allow for adoption as of 1 April 2022 or 2023 and LASAAC would encourage all Scottish Councils to implement IFRS 16 as of the 1 April 2022.

LASAAC responds to the English Redmond Review

19 December 2019

LASAAC has submitted a written response to the Redmond Review, which is considering the English arrangements for local government financial reporting and audit.

The response notes LASAAC’s role in CIPFA/LASAAC which is responsible for developing the Code of Practice on Local Authority Accounting; the adaptation of IFRS standards for local government; the importance of the management commentary (narrative reporting) in interpreting and explaining the financial information provided; and CIPFA/LASAAC's strategy to improve financial reporting for users of the accounts.

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