ICAS ICAS logo

Quicklinks

  1. About Us

    Find out about who we are and what we do here at ICAS.

  2. Find a CA

    Search our directory of individual CAs and Member organisations by name, location and professional criteria.

  3. CA Magazine

    View the latest issues of the dedicated magazine for ICAS Chartered Accountants.

  4. Contact Us

    Get in touch with ICAS by phone, email or post, with dedicated contacts for Members, Students and firms.

Login
  • Annual renewal
  • About us
  • Contact us
  • Find a CA
  1. About us
    1. Governance
  2. Members
    1. Become a member
    2. Newly qualified
    3. Manage my membership
    4. Benefits of membership
    5. Professional development
    6. CA Wellbeing
    7. Mentoring
    8. Member rewards
    9. Area networks
    10. International communities
    11. Get involved
    12. Top Young CAs
    13. Career breaks
    14. Proud to be a CA
    15. ICAS podcast
    16. Newly admitted members 2022
  3. CA Students
    1. Student information
    2. Student resources
    3. Learning requirements
    4. Learning updates
    5. Learning blog
    6. Totum Pro | Student discount card
  4. Become a CA
    1. How to become a CA
    2. Routes to becoming a CA
    3. CA Stories
    4. Find a training agreement
    5. Why become a CA
    6. Qualification information
    7. University exemptions
  5. Employers
    1. Become an Authorised Training Office
    2. Resources for Authorised Training Offices
    3. Professional entry
    4. Apprenticeships
  6. Find a CA
  7. ICAS events
    1. CA Summit
  8. CA magazine
  9. Insight series 2022
    1. Finance + Trust
    2. Finance + Technology
    3. Finance + EDI
    4. Finance + Mental Fitness
    5. Finance + Leadership
    6. Finance + Sustainability
  10. Professional resources
    1. Anti-money laundering
    2. Audit and assurance
    3. Brexit
    4. Charities
    5. Coronavirus
    6. Corporate and financial reporting
    7. Business and governance
    8. Ethics
    9. Insolvency
    10. ICAS Research
    11. Pensions
    12. Practice
    13. Public sector
    14. Sustainability
    15. Tax
  11. Regulation
    1. Complaints and sanctions
    2. Regulatory authorisations
    3. Guidance and help sheets
    4. Regulatory monitoring
  12. CA jobs
    1. Hays | A Trusted ICAS CA Jobs Partner
    2. CA jobs partner: Rutherford Cross
    3. Resources for your job search
    4. Advertise with CA jobs
    5. Director of Finance and Company Secretary | Glasgow
    6. Hays | A Trusted ICAS CA Jobs Partner
  13. Work at ICAS
    1. Business centres
    2. Meet our team
    3. Benefits
    4. Vacancies
    5. Imagine your career at ICAS
  14. Contact us
    1. Technical and regulation queries
    2. ICAS logo request

Implementation of IFRS 16 Leases in local authorities

  • LinkedIn (opens new window)
  • Twitter (opens new window)
By CIPFA/LASAAC Local Authority Accounting Code Board

12 December 2018

Key points

  • CIPFA/LASAAC has agreed to delay implementation of IFRS 16 leases in local authorities until 1 April 2020.

  • Local authorities are encouraged to continue preparation for implementation and ensure that they have the information, processes and systems in place.

  • Area of change remaining relates to the approach to the subsequent measurement of the right-of-use asset.

The CIPFA/LASAAC local authority accounting Code Board has deferred the effective date of implementation of IFRS 16 Leases in local authority financial statements.

CIPFA/LASAAC has been encouraged by the progress being made by local authorities to prepare for implementation. However, following decisions taken at the meeting of the government’s Financial Reporting Advisory Board (FRAB) on 22 November 2018 to defer implementation for the majority of rest of the public sector, CIPFA/LASAAC has agreed to delay implementation until 1 April 2020 to avoid additional workload from Whole of Government Accounts data collection processes.

CIPFA/LASAAC would encourage local authorities to continue to progress with their plans for implementation and ensure that they have the information, processes and systems in place. Local authorities will also want to ensure that they understand the impact on their capital financing arrangements including, for example, their prudential indicators. CIPFA/LASAAC agrees with FRAB that the deferral of IFRS 16 will be strictly limited to one year and implementation of IFRS 16 will be in the 2020/21 financial year.

The majority of the decisions on the approach to adoption of IFRS 16 have been agreed by both CIPFA/LASAAC and FRAB.  A Local Authority Leases Briefing 4 will provide an overview of CIPFA/LASAAC’s agreed provisions.

The substantial area of change that remains to be finalised is that relating to the approach to subsequent measurement of the right-of-use asset, where support was received as a result of the consultation and subsequent approval processes for the overall aims of the current value measurement approach outlined in the consultation papers (referred to as Option 1).

However, the proposals for using the lease term to determine the point at which current value measurement is used was a more rules-based approach than CIPFA/LASAAC would normally use and did not align with the proposals in the government’s financial reporting manual (the FReM). CIPFA/LASAAC supports FRAB’s desire for alignment, where possible, across the public sector on the implementation of IFRS 16. HM Treasury and CIPFA/LASAAC staff will, therefore, work together to arrive at an approach regarding subsequent measurement of the right-of-use asset.

More details on the approach to the subsequent measurement of the right-of-use asset will be issued in the early part of 2019.

CIPFA/LASAAC understands that CIPFA will issue a project plan and application guidance to assist local authorities with implementation for 1 April 2020 in due course.

2022 06 pb 2022 06 pb
ICAS logo

Footer links

  • Contact us
  • Terms and conditions
  • Modern slavery statement
  • Privacy notice
  • CA magazine

Connect with ICAS

  • Facebook (opens new window) Facebook Icon
  • Twitter (opens new window) Twitter Icon
  • LinkedIn (opens new window) LinkedIn Icon
  • Instagram (opens new window) Instagram Icon

ICAS is a member of the following bodies

  • Consultative Committee of Accountancy Bodies (opens new window) Consultative Committee of Accountancy Bodies logo
  • Chartered Accountants Worldwide (opens new window) Chartered Accountants Worldwide logo
  • Global Accounting Alliance (opens new window) Global Accounting Alliance
  • International Federation of Accountants (opens new window) IFAC
  • Access Accountancy (opens new window) Access Acountancy

Charities

  • ICAS Foundation (opens new window) ICAS Foundation
  • SCABA (opens new window) scaba
© ICAS 2022

The mark and designation “CA” is a registered trade mark of The Institute of Chartered Accountants of Scotland (ICAS), and is available for use in the UK and EU only to members of ICAS. If you are not a member of ICAS, you should not use the “CA” mark and designation in the UK or EU in relation to accountancy, tax or insolvency services. The mark and designation “Chartered Accountant” is a registered trade mark of ICAS, the Institute of Chartered Accountants of England and Wales and Chartered Accountants Ireland. If you are not a member of one of these organisations, you should not use the “Chartered Accountant” mark and designation in the UK or EU in relation to these services. Further restrictions on the use of these marks also apply where you are a member.

ICAS logo

Our cookie policy

ICAS.com uses cookies which are essential for our website to work. We would also like to use analytical cookies to help us improve our website and your user experience. Any data collected is anonymised. Please have a look at the further information in our cookie policy and confirm if you are happy for us to use analytical cookies: