Responding to COVID-19: insight, support and guidance

Internal Transactions and Operating Segments Reporting 2017/18

13-04-18

The Code requirements regarding the treatment of internal transactions in the annual accounts are changing for 2018/19. To assist practitioners in preparing for and transitioning to this change LASAAC has developed advisory guidance on Internal Transactions and Operating Segments Reporting 2017/18 (PDF, 216KB) 

Please note that this guidance is advisory, not mandatory.

The guidance addresses the following areas:

  • descriptions of different types of internal transactions
  • the treatment of internal recharges (controllable budgets)
  • three presentation options for 2017/18:
      1. no elimination of internal recharges (controllable budgets)
      2. a specific line in the Comprehensive Income and Expenditure Statement (CIES) for elimination of internal recharges (controllable budgets)
      3. the exclusion of internal recharges (controllable budgets) from the CIES, with a separate disclosure note.

In order to assist, practitioners' workbooks have been developed to illustrate the use of either an elimination line in the CIES (XLSX, 41KB) or the provision of a separate note (recharges excluded from CIES) (XLSX,44KB). These models have not been verified or approved by LASAAC and are not part of the LASAAC guidance, but are intended to illustrate the underlying logic which would support the use of the options identified.