Responding to COVID-19: insight, support and guidance

Application of group accounting standards in Local Government


The Code of Practice on Local Authority Accounting in the United Kingdom 2014/15 adopts
the group accounting principles based on IFRS 3 and the new IFRS standards and
amendment of related existing standards relative to Group Accounts. The new provisions
have effect in three areas;

  • A new definition of subsidiaries based on a remodelled control test (IFRS 10

  • Consolidated Financial Statements)

  • New classifications for joint operations and joint ventures (IFRS 11 Joint

  • Arrangements)

  • Extended and revised disclosure requirements for group accounts (IFRS 12 Disclosure

  • of Interests in Other Entities)

The Code sets out the accounting requirements for collaborative arrangements and
additionally details the presentation and disclosure requirements.
Appendix 2 of this guidance provides practical scenarios for consideration of the application
of the Group Accounting Standards.


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