Deadline Extended on Code of Practice on Local Authority Accounting in the United Kingdom 2022/23

16-08-2021

The 2022/23 code will apply to accounting periods starting on or after 1 April 2022. The proposed amendments in the 2022/23 code cover changes relating to the implementation of IFRS 16 Leases and changes in accounting standards on which CIPFA/LASAAC wishes to seek stakeholders' views.

Due to problems with the online survey, the consultation deadline has been extended. The consultation now closes on 15 October 2021.

Issues considered in the consultation

The changes and feedback requested in the invitation to comment (ITC) for the 2022/23 code relate to the following:

  • Further developments on the implementation of IFRS 16, comprising:
    • the measurement of the service concession arrangement liability
    • further clarification of the treatment of Housing Revenue Account tenancy agreements under leasing standards; after a separate consultation issued in November 2020, CIPFA/LASAAC determined that these are operating leases, but that the current disclosure requirements for HRA tenancies should continue to be applied. Revised text was incorporated into Appendix F of the 2021/22 code. The amendments proposed in this invitation to comment provide further clarification of the approach.
  • Other changes to accounting standards.
  • Other matters, comprising further consultation on the future implementation of IFRS 17 insurance contracts and review of capital financing requirement disclosures.

Implementation of IFRS 16 Leases in the 2022/23 Code

CIPFA/LASAAC consulted on the implementation plans for IFRS 16 in 2018, 2019 and 2020. CIPFA/LASAAC is aware of the need for authorities to continue with preparations for successful implementation of the new requirements during 2022. To inform and support this, the text agreed by CIPFA/LASAAC for IFRS 16 implementation was provided as Appendix F to the 2020/21 and 2021/22 codes. This text may by subject to change by the issues outlined above; for completeness Appendix F is included below. The ITC does not specifically re-expose the proposals to consultation (other than the issues outlined above).

The invitation to comment and exposure drafts of the 2022/23 code

The exposure draft of the 2022/23 code is provided as a number of files. They are listed in numerical order and follow the order of the section in the ITC in which an issue is discussed, not the section of the code itself.

Invitation to comment

Exposure drafts (EDs)

Note: the exposure drafts are titled to correspond to the ITC section format. There is no exposure draft C.

The invitation to comment summarises the proposed changes to the code. Where CIPFA/LASAAC is interested in specific issues, consultation questions have been included in the ITC. However, CIPFA/LASAAC welcomes comments on any aspect of the draft 2022/23 code. In order to assess comments properly, respondents are asked to support comments with clear accounting and financial reporting reasons and, where applicable, preferred alternatives.

Responses to the consultation can be by letter or email to cipfalasaac@cipfa.org

Webchat is available Monday to Friday, 09:00 - 17:00 (excluding UK bank holidays).