LASAAC issues draft guidance on Asset Decommissioning Obligations

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13 Dec, 2013

The Local Authority (Scotland) Accounts Advisory Committee (LASAAC) yesterday issued draft guidance for Scottish local government entities on accounting for Asset Decommissioning Obligations. Comments are requested by Friday 17 January 2014.

The LASAAC proposals (link to CIPFA website) set out guidance for Scottish local government on the following aspects of accounting for Asset Decommissioning Obligations:

  • Criteria for inclusion in the cost of an asset
  • Pattern of decommissioning obligations
  • Depreciation
  • Valuation
  • Unwinding of the discounted present value
  • Componentisation
  • Capital Financing Requirement
  • Increases in Asset Decommissioning Obligations (IFRIC 1)

LASAAC is a body which is constituted of volunteer members representing CIPFA, ACCA, ICAS, Audit Scotland and the Scottish Government.

Click here for a link to the consultation on the CIPFA website, as well as a Microsoft Excel workbook example to assist practitioners in estimating the potential funding impact of the proposals.

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