The revised Code has been introduced following two consultations by CIPFA/LASAAC in 2015. The 2016/17 edition of the Code introduces new, or amended, accounting standards or reporting requirements in a number of areas including:

• The introduction of a new section specifying the revised measurement requirements at Depreciated Replacement Cost for the Highways Network Asset based on the methodologies in the CIPFA Code of Practice on Transport Infrastructure Assets.
• The Code also includes changes resulting from the Telling the Story Review on improving the presentation of local authority financial statements. These include new formats and reporting requirements for the Comprehensive Income and Expenditure Statement and the Movement in Reserves Statement and the introduction of the new Expenditure and Funding Analysis.
• Amendments to the Accounting and Reporting by Pension Funds section of the Code, following its review by CIPFA/LASAAC.
• Following the changes introduced in the Update to the 2015/16 Code, amendments to reflect the new requirements in the Accounts and Audit Regulations 2015 for English authorities for a narrative statement.
• Amendments arising from the narrow scope amendments to IFRS including changes to IAS 1 Presentation of Financial Statements under the International Accounting Standards Board Disclosure Initiative.

A Technical Information Note discussing feedback from the 2015 consultations and full details of the changes are available on the CIPFA website. A full version of the Code can also be obtained there (requires payment).

In June 2015 the FRC published a Discussion Paper, Improving the Quality of Reporting by Smaller Listed and AIM Quoted Companies. The purpose of this paper was to outline the FRC’s view of the reasons for the poorer quality reporting by some smaller listed and AIM quoted companies in addition to outlining a number of proposals designed to help such companies improve the quality of their reporting. The Discussion Paper invited respondents’ views on both the issues identified by the FRC and their proposed actions.

The update provides an overview of the feedback received to the Discussion Paper and summarises the FRC's progress against the proposals that were included in that paper.

In summary, respondents:

• were generally supportive of the FRC’s findings and proposed actions as outlined in the Discussion Paper;
• urged regulators not to impose any additional regulatory burdens on smaller quoted companies, particularly AIM companies;
• agreed that all quoted companies should apply a common reporting framework and that IFRS represented the most appropriate framework;
• did not support a review of the Responsible Individual registration process;
• welcomed the FRC proposal to send out annual reminder letters targeted at smaller quoted companies;
• agreed that the FRC should encourage smaller quoted companies to participate in Financial Reporting lab projects;
• supported the plan to develop further practical guidance for audit committees; and
• welcomed the initiative to explore opportunities for providing more support for preparers of financial statements through training and CPD regimes.

   Click for:

•    Press release (link to FRC website)
•    Full Update paper
•    Our UK Accounting Plus project page on 'Smaller listed and AIM company reporting'.

Mr Gauzès was the candidate proposed by the European Commission for the role of President and had been heard and approved by the Committee on Economic and Monetary Affairs (ECON) of the European Parliament.

Please click for the EFRAG press release on the General Assembly vote.

Mr Buchanan, Global Head of IFRS at BDO, was one of two people appointed to one seat to be filled on a rotational basis in 2013. Andrew Watchman from Grant Thornton was chosen to fill the seat for three years from 2013 but stepped down early due to his appointment as European Financial Reporting Advisory Group (EFRAG) CEO and Technical Expert Group Chairman. His seat remained vacant for three months as Andrew Buchanan starts his appointment as originally planned as off today for a three-year term.

Today also sees the beginning of the second term of three reappointed members and the beginning of the first term of two new members of the Committee.

Additional information:

• IASB press release
• Overview of IFRS Committee responsibilites and membership

This publication addresses some questions of interpretation that have arisen as countries and MNEs (Multinational Enterprises) have been preparing to implement CBCR. In the OECD's view, these questions are best addressed through common public guidance.

The four areas covered in the guidance are:

• Transitional filing options for MNEs (“parent surrogate filing”).
• The application of CBCR to investment funds.
• The application of CBCR to partnerships.
• The impact of currency fluctuations on the €750 million filing threshold.

Country-by-country reporting (CBCR) is one of the actions recommended by the OECD as part of its work on Base Erosion and Profit Shifting (BEPS). For more information on CBCR as part of the BEPS project, see our previous UK Accounting Plus news article about the implementation of CBCR in the UK.

The guidance document can be obtained from the OECD website.

Today's last batch of answers also included thoughts on the following question:

In areas of accountancy, what new policies will follow? Will [the UK] be inclined or persuaded to depart from International Financial Reporting Standards (IFRS) and re-establish UK Generally Accepted Accounting Practice (UK GAAP)?

The ICAS staff argue that if the UK intends to remain a global player, "then one would expect that it would need to require listed entities to comply with global standards in the area of financial reporting".They state:

IFRS is now seen as the global benchmark in terms of financial reporting standards and therefore their use, or the use of standards substantively based on the IFRS framework (adopted standards), would appear to be the primary option.

However, the ICAS staff point out that following its exit the UK would have the ability to specifically adopt IFRS standards as issued by the IASB without them firstly having to be adopted by the EU. They also explain that the UK could establish its own adoption mechanism, possibly via the Financial Reporting Council (FRC).

Please click for the following information on the ICAS website:

• List of 20 questions
• Answers on business and trade
• Answers on bridging the policy gap
• Answers on taxation and accounting