The role of the Financial Reporting Advisory Board (FRAB) is “to ensure that government financial reporting meets the best possible standards of financial reporting by following Generally Accepted Accounting Practice (GAAP) as far as possible”.  The FRAB includes representatives from the accountancy profession in the private and public sectors, academia and government bodies.  The board meets regularly to consider proposed changes to policy and practice. 

Key topics discussed during the meeting were:  

• A new “principles based approach” to determining the use of IFRS 13 ‘Fair Value Measurement' in the public sector.  HMRC and CIPFA propose that IAS 16 ‘Property, Plant and Equipment’ is adapted such that IFRS 13 applies to assets which are not held for their service potential and to surplus assets which can be disposed of.    Under the proposal, IAS 16 will continue to be adapted to ensure that assets in use that are held for their service potential are held at current value and for those assets that are surplus where there are no restrictions on disposal, IFRS 13 will apply.  Where there are restrictions, a current value measurement will continue to be applied.
• The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) consultation on accounting for schools in local authorities.
• The use of discount rates in financial reporting.
• An update on the simplifying and streamlining annual reports and accounts project since the December 2013 meeting.
• An update on the European Public Sector Accounting Standards project and discussion of the consultation published by Eurostat.
• The Financial Reporting Advisory Board (FRAB) report on public sector accounting for the period April 2013 to March 2014.

Click here for detailed minutes and other supporting documents on HM Treasury website.