To support the implementation of the new adoption of IFRS 16 Leases in the Local Authority Accounting Code, CIPFA has produced a series of briefings.
Local Authority Leasing Briefing One (PDF, 227KB)
This briefing focuses on recognition and measurement and the adaptations to the code for the adoption of IFRS 16.
Local Authority Leasing Briefing Two (PDF, 192KB)
This briefing focuses on identifying the lease, recognition exemptions, portfolio application and transitional reporting requirements under IFRS 16 and provides an update on the impact assessment process.
Local Authority Leasing Briefing Three (PDF, 260KB)
This briefing focuses on discount rates, lessor accounting, disclosure requirements, concessionary leases – lessees and the measurement of the service concession arrangement (PFI/PPP) liability.
Latest updates
CIPFA LASAAC Statement confirming mandatory implementation of IFRS 16 Leases in 2024/25
CIPFA LASAAC has issued an update statement confirming the mandatory implementation of IFRS 16 Leases in 2024/25.
Update to the 2022/23 Code of Practice on Local Authority Accounting affecting only authorities voluntarily implementing IFRS 16 Leases in 2022/23
This Update to the 2022/23 Code is in relation to the treatment of service concession liability (PFI PPP liability) by authorities that choose to voluntarily adopt IFRS 16 Leases in 2022/23. While Section 4.3 of the Code and Appendix F require that the liability is valued by reference to IFRS 16, this update provides an option for these local authorities to defer implementation of this change until 2023/24, in line with financial reporting requirements in other parts of the public sector which have deferred implementation of IFRS 16 to PFI PPP arrangements. Note that the Update sets out an option but is not mandatory; local authorities that choose to voluntarily adopt IFRS 16 Leases in 2022/23 may elect to follow the unamended provisions in Appendix F.
Download the Update to the 2022/23 Code
The Update will need to be read alongside the 2022/23 Code. The amendments have been presented as tracked changes in red font.
Publications and Training
IFRS 16 Leases: A Guide for Local Authority Practitioners (2023 Edition)
IFRS 16 Leases: A Guide for Local Authority Practitioners provides guidance on IFRS 16 Leases for 2022/23, which is applicable to those authorities deciding to voluntarily implement the requirements of Appendix F of the Code (which includes the specifications applicable to those entities implementing IFRS 16 Leases as of 1 April 2022). It will also be of interest to those intending to apply as of 1 April 2023 and those mandatorily implementing as of 1 April 2024.
Suggested project plan
The IFRS 16 Leases timetable was published in CIPFA Bulletin 14: Closure of the 2022/23 Financial Statements and CIPFA Bulletin 17: Closure of the 2023/24 Financial Statements. It has been reproduced in its entirety so that practitioners can review progress and plan future activities to ensure a successful implementation.
Training
Finance Advisory Network (FAN) regularly runs training throughout the year, including IFRS 16 Leases specific training. FAN subscribers can access past Finance Advisory Network events material which will include information on IFRS 16 Leases implementation.
Other sources of support
Technical Enquiry Service
CIPFA members and students can use the Technical Enquiry Service to submit questions about technical aspects of IFRS 16 Leases implementation.
Finance Advisory Network (FAN)
Subscribers to FAN can Ask an advisor questions about IFRS 16 Leases implementation.
CIPFA Solutions
CIPFA solutions is CIPFA’s expert advisory service.
NHS England Guidance
The NHS previously adopted IFRS 16 Leases from 1 April 2022. There is guidance on NHS England’s IFRS 16 Leases implementation webpage that although aimed at NHS bodies, practitioners may find useful.