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 revised Financial Reporting Manual (FReM) 2015-16 and the draft FRem 2016-17.  The Board was presented with the revised FReM and the FReM 2016-17 was also presented to the Board for consideration.  No further changes to the FReM 2016-17 were proposed from the 2015-16 version.
• An update on International Financial Reporting Standard (IFRS) 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers implementation progress against the work plans.
• An update to the IASB’s work on the Conceptual Framework and consideration of the potential implication for the public sector.
• A proposition from the Department for Business, Innovation and Skills (BIS) of a pilot project for the rationalisation of financial reporting among Research Council bodies.  These proposals follow the implementation of the first phase of the Simplification and Streamlining Accounts project in 2015-16.
• An update on the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) Code 2016-17; a draft of which was published in July 2015.  It was noted that responses to the consultation were “mostly supportive”.

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