Responding to a consultation on the update to the Code of Practice on Local Authority Accounting for 2024/25, ACCA has said that greater understanding is required of the readiness of local authorities in adopting IFRS 16 on accounting for leases. Especially given the challenges faced by the bodies, from both a fiscal and preparatory perspective.
ACCA highlights the need for a collaborative approach given local challenges, complex regulatory landscapes, constraints of resources and the financial stability of certain councils. This includes the recognition of the burdens associated with local audit and accounts preparation as well as widening budget gaps.
To read the response in full, please download the consultation document on this page.