The Government has announced that it intends to:-
- Require local authorities to account for fair value movements in financial instruments in accordance with proper practices as set out in the Code on Local Authority Accounting published by CIPFA
- Introduce a mandatory statutory override requiring local authorities to reverse out all unrealised fair value movements resulting from pooled investment funds. This will be effective from financial year commencing 1 April 2018
- Extend the proposed period for which the statutory override applies to five years. The Government will keep use of the override under review
- Require Local Authorities to disclose the net impact of the unrealised fair value movements in a separate unusable reserve throughout the duration of the override
- Introduce a 2 year extension of the unequal pay regulation.
There will be no override for the expected loss model or for the extra disclosures that the new standard requires. Read more »