Government consults on the future of the statutory override of the requirements of IFRS 9 for local authorities
18 Aug, 2022
The government is consulting on the future of a statutory override which was introduced in 2018 to mitigate the effects of International Financial Reporting Standard (IFRS) 9 'Financial Instruments' on local authority accounting.
In 2018, following concerns from the sector regarding the adoption of IFRS 9 into the Code of Practice on Local Authority Accounting, the government introduced a statutory override to mitigate the effects of IFRS 9 on local authority accounting. The statutory override was time-limited to five years, from 1 April 2018 and ending 31 March 2023. At that time, the government said that it would keep use of the statutory override under review but made no further commitments.
The government is now considering available options. These are:
- to allow the existing statutory override to expire;
- extend the statutory override for an additional period of time; or
- make it permanent.
The consultation seeks views of authorities and other stakeholders to understand the financial risks and benefits associated with the options.
The consultation closes for comment on 7 October 2022.
Please see the government website here for the consultation overview and details on how to respond.
