ACCA welcomes the opportunity to comment on the 2027/28 Code of Practice on Local Authority Financial reporting in the UK (the Code) published by the Chartered Institute of Public Finance and Accountancy (CPIFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC).

ACCA is supportive of the majority of proposals and considers the proposed reforms to be comprehensive, addressing the key financial reporting challenges that local authorities in the UK are facing. In particular, ACCA supports the focus on longer-term financial reporting reform and the work of the Better Reporting Group, recognising the importance of ensuring that the Code remains relevant to the evolving needs of users of local authority accounts. We support the proposed introduction of an Accountability Report, the simplification of financial statements and disclosures, and the alignment of local authority reporting with wider practice in the UK public sector.

ACCA emphasises the importance of simplicity, certainty and stability as key principles in the development of the Code. The Accountability Report is a significant opportunity to improve the understandability and usefulness of local authority financial reporting by clearly separating information prepared on a statutory funding basis from IFRS-based financial statements. The proposals provide a cleaner and more accessible reporting framework that better supports local accountability and decision-making by elected members.

Regarding sustainability, ACCA would encourage CIPFA/LASAAC to take a strategic and joined-up approach to the development of new reporting requirements, to ensure that they are proportionate and provide meaningful information to users. We recommend consideration of emerging UK and international reporting developments where these may provide a more consistent and future-proof basis for local authority reporting.

ACCA stands ready to support CIPFA/LASAAC, local authority finance teams and their auditors as these important reforms are implemented.

To read our response in full, please download the document found on this page.