CIPFA LASAAC issue its statement on the Deferral of IFRS 16 Leases
12 Apr, 2022
The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee have issued an updated statement on the deferral of IFRS 16 'Leases' for Local Authorities until 1 April 2024.
Following its emergency consultation in February on exploratory proposals for changing the Code of Practice on Local Authority Accounting in the United Kingdom ("the Code"), CIPFA LASAAC issued its preliminary decision and feedback statement in March. The government’s Financial Reporting Advisory Board (FRAB) subsequently considered the preliminary decision and advised CIPFA LASAAC that it agreed with the deferral of IFRS 16 Leases until 1 April 2024.
As a result, the implementation of IFRS 16 will be deferred until 1 April 2024 (and therefore in the 2024/25 Code). However local authorities are encouraged to adopt the standard before this date should they wish to and this is permitted in the 2022/23 and 2023/24 Code which will allow for early adoption as of 1 April 2022 or 2023.
The updated statement on the deferral of IFRS 16 for Local Authorities is available on the CIPFA website.
