11 January 2008
All local authorities will be expected to prepare their annual accounts in accordance with International Financial Reporting Standards from April 2010, CIPFA has announced.
The institute has settled on a two-year preparation period to allow the development of an IFRS code of practice and for authorities to prepare staff for the changes.
Local government's adoption of the standards is in line with a similar move by central government.
CIPFA will now begin working with the Department for Communities and Local Government and the devolved administrations to identify any issues that might adversely affect councils' finances, and to develop solutions before the standards come into effect. There will also be a 'first principles' review of the content of local authorities' accounts to identify the scope for simplification.
In addition, CIPFA is to work with the Treasury to ensure that the local authority code of practice incorporates the lessons learned from central government's experience of moving to IFRS.
The preparations will be led by the CIPFA-Local Authority (Scotland) Accounts Advisory Committee Statement of Recommended Practice board.
Its chair, Nick Bennett, public sector partner at Scott-Moncrieff, said: 'This is a challenging but achievable timetable that will ensure local authority financial reporting maintains its current high standards.
'The 2010/11 timetable announcement provides certainty for councils, and we look forward to working with all key stakeholders to ensure that IFRS are implemented in the most appropriate way for local authorities across the United Kingdom.'
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