IFRS-based Code

Find out more about the Code of Practice on Local Authority Accounting in the United Kingdom (the Code), prepared by the CIPFA/LASAAC Local Authority Code Board.

Consultation on the Code of Practice 20/21 

CIPFA/LASAAC has issued an invitation to comment on the Code of Practice 20/21. The consultation closes on 27 September 2019.  

CIPFA/LASAAC Vision Statement and Strategy for Code Development 

Following a review of its operations and following initial feedback from stakeholders, CIPFA/LASAAC has developed a vision statement to set out the principles which should inform future Code development. The vision statement is:

UK local authority annual accounts should be widely recognised as an exemplar for clear reporting of the financial performance and position of complex public sector bodies. Users of accounts should be able to access the information they want to help them to understand the finances of an authority and to take practical and informed decisions.

Three strategic themes will support progress towards this:

  • ensuring that the annual accounts clearly articulate their key messages regarding their financial performance and position
  • engaging with stakeholders to raise awareness and understanding
  • reviewing its operations to ensure it is able to deliver its vision.

The CIPFA/LASAAC Vision Statement and the Strategic Implementation Plan provide more information on implementation proposals, with wider stakeholder engagement being a key aspect to inform developments.

Local authorities in the United Kingdom are required to keep their accounts in accordance with ‘proper practices’. This is defined, for the purposes of local government legislation, as meaning compliance with the terms of the Code of Practice on Local Authority Accounting in the United Kingdom.

The Code specifies the principles and practices of accounting required to prepare a statement of accounts that gives a true and fair view of the financial position and transactions of a local authority.

The Code is reviewed continually and is normally updated annually. The code for 2019/20 is available as either a book or online for download

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

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CIPFA/LASAAC has also issued a feedback statement on the amendments to the Code following the consultation processes in the summer of 2018. Please note that this feedback statement does not form any part of the 2019/20 Code.

Update to the 2018/19 Code – IFRS 9 Financial Instruments: Prepayment Features with Negative Compensation and other augmentations

CIPFA/LASAAC has issued an update to the 2018/19 Code of Practice to provide transitional provisions for changes in accounting practices or treatment for modifications of exchanges of financial liabilities that do not result in derecognition which arise as a result of clarifications in IFRS 9 Financial Instruments: Prepayment Features with Negative Compensation (IASB October 2017) and minor augmentations to the provisions relating to exchanges between an existing borrower and lender.

The update to the 2018/19 Code must be read in conjunction with the 2018/19 Code published by CIPFA in April 2018. The update includes tracked changes to appropriate extracts of the 2018/19 Code with both new and amended paragraphs required to form the revised 2018/19 Code. The update has been made available to purchasers of the 2018/19 Code.

Governance framework to the Code

Under its governance framework, CIPFA/LASAAC remains the accounting standard setter for local authorities. The Code also continues to be the authoritative source of accounting guidance for local authorities across the UK.

Download the CIPFA/LASAAC Constitution for the Board's terms of reference. The Financial Reporting Advisory Board (FRAB) and the Memorandum of Understanding between FRAB bodies can be found on the gov.uk website.