Code of Practice on Local Authority Accounting in the United Kingdom 2024/25 (online)

This is the online version of the Code. It is also available in print format.

Please note that minor corrections have been made to the 2024/25 online edition in September 2024. This was to correct a small number of cross references which needed to be updated due to a new paragraph being added when the 2024/25 Code published in May 2024. The Code available on this webpage is the corrected version.

Local authorities in the UK are required to keep their accounts in accordance with ‘proper (accounting) practices’. Public sector organisations responsible for locally delivered services are required by legislation to comply with the terms of the Code of Practice on Local Authority Accounting in the United Kingdom (the Code). This 2024/25 edition of the Code has been developed by CIPFA/LASAAC and has effect for financial years commencing on or after 1 April 2024.

The Code specifies the principles and practices of accounting required to prepare financial statements which give a true and fair view of the financial position and transactions of a local authority. The Code applies to local government organisations across the UK including local authorities, police bodies, fire services and other local public service bodies.

This edition of the Code introduces mandatory adoption of IFRS 16 Leases. Other amendments include:

• a suggestion that narrative reporting could reflect on the risk that a Section 114 notice might be issued
• recent changes to the IFRS treatment of sale and leaseback arrangements
• specifying the treatment on initial application of IFRS 16 where service concession arrangements provide for variable payments that depend on an index or rate.

Preparers should be aware that an exceptional consultation has been undertaken that explored options to help alleviate pressures on the timetable for publication and audit of local authority financial statements, and this may result in updates being made to this edition of the Code and the 2023/24 edition of the Code.

Please note: this new 2024/2025 edition of the Code of Practice on Local Authority Accounting in the United Kingdom does not include updates from the recent consultation issued by the CIPFA/LASAAC Local Authority Code Board. The outcome of that recent consultation will be communicated and published at a later date, as a separate document.