The 2018 Capital Hot Topics series focused on two key areas of change, the updates to the Prudential Framework and the new leasing accounting standard IFRS 16.
The recent trends observed around local authority commercial investment in England have certainly meant that the changes to the latest Prudential Code and wider framework have been a hot topic of debate across the sector, which will now lead to further guidance from CIPFA. Arguably the biggest change in the Prudential Code has been the introduction of a requirement to approve a Capital Strategy, and the FAN series explored this area in more detail, looking at how the Prudential Code anticipates that service planning, asset management planning and financial planning would be integrated so that the capital strategy presented a joined-up forward-looking overview of the strategic plans for the authority and what those plans will mean to (revenue and) capital budgeting.
The session on leasing explored the main areas covered by the 2018 consultation, what the anticipated changes in the Accounting Code might mean in practice, and how authorities can best prepare for those changes. It is pleasing to report that the feedback and group discussions undertaken through the series were used as part of CIPFA/LASAAC’s deliberations of IFRS 16 at its November meeting, supporting (and consistent with) the findings of CIPFA’s detailed impact assessment work. Many thanks to all delegates for your part in supporting this important process.
The slides from the series are included below for subscribers to access.