05-12-2024
CIPFA LASAAC has issued its annual consultation on the 2025/26 Code of Practice on Local Authority Accounting in the United Kingdom (the Code). The 2025/26 Code will apply to accounting periods starting on or after 1 April 2025.
Issues considered in the consultation
The changes and feedback requested in the invitation to comment (ITC) for the 2025/26 Code relate to the following.
- Longer-term reforms and change in approach to the measurement of Operational Property, Plant and Equipment in line with the HM Treasury Thematic Review
- Changes to accounting standards for 2025/26, including:
- IFRS 17 Insurance Contracts
- Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates (Lack of Exchangeability)
- Legislative changes, including:
- Accounts publication deadlines (England)
- Fair value gains and losses on pooled investments (England and Wales)
- Extension of the Temporary Solution for infrastructure assets
- CIPFA LASAAC's strategic plan, including the Better Reporting Group
- Other financial reporting or emerging issues, including:
- Changes to IFRS standards which could impact on the Code
- Changes to IPSAS standards which could impact on the Code
- Purpose of Local Authority Accounts – Financial Reporting and Audit in Local Authorities inquiry
The invitation to comment and exposure draft of the 2025/26 Code
The Invitation to Comment (ITC) summarises the possible changes to the code. The exposure draft which presents the changes in the Code is included separately.
- Download the Invitation to Comment on the 2025/26 Code of Practice on Local Authority Accounting in the United Kingdom
- Download the Exposure Draft: 2025/26 Code of Practice on Local Authority Accounting in the United Kingdom
Interested parties are invited to provide responses to questions in the ITC, via the invitation to comment form.
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 2025/26 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 are requested by 14 February 2025, 23:00.
If you have any issues with completing the ITC form, please email cipfalasaac@cipfa.org.
Find out more
For more information please join the hour long CIPFA Webinar 2025/26 Code Consultation being held on Wednesday 22 January 2025.