These workshop events explored in detail the key concepts in accounting for capital expenditure and its financing, and the specific Code requirements in respect of the accounting for and reporting of expenditure on non-current assets.
The events started with a basic run-through of the Prudential and regulatory framework governing capital expenditure, and then explored some of the common challenges facing capital accountants in practice, teasing out areas where authorities may have differing accounting policies.
Download the final workshop materials below (please note: there were a few minor amendments to the original slides, mainly affecting slides 44, 53 and 130):
Further information
Introduction and overview – covering the legislative framework, fundamental principles of asset accounting and capital financing and the Prudential Code and Indicators
Key concepts in asset accounting – covering asset recognition, asset classification, valuations and impairments, disposals, depreciation and componentisation, the financial reporting requirements for capital expenditure, and a quick look ahead to future challenges including IFRS 13 and Highways Infrastructure Asset valuations on a DRC basis
Key concepts in capital financing – covering the various sources of financing and their accounting entries, the Capital Financing Requirement and Statutory Guidance on the Minimum Revenue Provision for debt repayment, overlaps between capital and treasury management activities, and a look ahead to potential changes in the accounting for leases.