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 included:

• The use of discount rates in financial reporting including discount rates applied to liabilities recognised under IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IAS 19 Employee Benefits. 
• Changes to the treatment of research and development costs under the European System of Accounts 2010 (ESA 10) which came into effect for Member States in September 2014.  The change is to treat such costs as capital expenditure rather than current expenditure.
• IFRS 9 Financial Instruments.  A paper was presented to the Board summarising the options and requirements for transition arrangements for the introduction of IFRS 9.
• A verbal update on IFRS 15 Revenue from Contracts with Customers.  An update was provided on the implementation work in relation to IFRS 15.  The Board were given a summary of the key impacts of transition.  A consultation on the implications of IFRS 15 and any proposed adaptations will be issued in late 2015.
• An update on the International Accounting Standard Board’s (IASB’s) Annual Improvements to IFRSs 2012-2014 Cycle and whether they have any specific public sector reporting impacts.  No further immediate work was deemed necessary as a result of the amendments and no amendments were proposed to the Government Financial Reporting Manual (FReM).
• An exposure draft of the Code of Practice on Local Authority Accounting in the United Kingdom 2016/17 (“the Code”).  Changes proposed in the exposure draft include measuring the Highways Network Asset at depreciated replacement cost; changes to the ‘Accounting and Reporting by Pension Funds’ section of the Code and changes as a result of narrow scope amendments to IFRSs.
• Whole of Government Accounts 2013-14

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