Code of Practice on Local Authority Accounting in the United Kingdom: Guidance Notes for 2019/20 Accounts (book)

These guidance notes are your expert support in dealing practically with the preparation of the year-end financial statements and reports that accompany them.

This version provides detailed guidance on the key accounting changes introduced by the 2019/20 Code of Practice on Local Authority Accounting in the United Kingdom (the Code), and includes:

• Updates to reflect 2018 IASB Conceptual Framework and provides details of improvements and updates in relation to:
  • the objectives of the financial statements
  • qualitative characteristics of useful financial information
  • definitions of assets, liabilities, income and expenses
  • the recognition process and criteria and new provisions on derecognition
  • measurement bases.
• Guidance on the Code's adoption of the amendments to the financial instruments standard (IFRS 9 Financial Instruments) relating to prepayment features with negative compensation.
• Updates to reflect the Code clarifications relating to contracts with lender option borrower option clauses.
• New guidance on the Group Accounts scope clarification for the disclosure requirements with respect to interests in entities within the scope of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (introduced by the Annual Improvements to IFRSs 2014 to 2016 Cycle).
• Explanation of the Code approach to drafting amendments (including commentary on when the Code adapts or interprets IFRS).
• Removal of references to Carbon Reduction Commitment Scheme following the Scheme closure.
• A new section has been added on the accounting treatment for the apprenticeship levy.
• Updates for the new voluntary transfers presentation (for Scottish local authorities only) in the movement in reserves statement and expenditure and funding analysis. This includes the treatment within the reserves.

The example financial statements have been updated to reflect the changes described above.

In addition, these guidance notes have been revised to take account of issues arising from queries raised by practitioners.

This publication is available in hard copy (presented as a loose-leaf update pack for your existing binder) and online as a PDF.

A replacement binder/presentation box is also available to purchase.