Accounting for local authorities is a specialist area that requires expertise and an understanding of the sector. On this page you can access a range of articles, books and online resources providing quick links to the Code of Practice, Statements of Recommended Practice, guidance and news.
We maintain a separate guide to accounting in government and resource accounting.
Code of Practice
Issuing body
Codes of Practice and Statements of Recommended Practice (SORPs) relating to local authorities are issued by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC).
From 1 April 2010, the IFRS-based Code of Practice on Local Authority Accounting will be applied and the guidance will no longer be labelled a SORP.
The CIPFA/LASAAC Local Authority Code Board ‘is established as a standing committee of CIPFA and LASAAC for the purpose of preparing, maintaining, developing and issuing the Code of Practice on Local Authority Accounting for the United Kingdom’. The board has published an outline of the annual Code-setting process and other guidance material.
Sources for the SORP and associated guidance
There is no free, online full text source for the Code. However, copies are available in the library.
Useful links
ICAEW
Public Sector Group
The special interest group provides practical support to chartered accountants within the sector. It offers news updates, technical guidance and publications, as well as conferences and seminars.
Archived documents
2008
SORP 2009 Exposure Draft (PDF 176.35kb/26 pages)
Exposure draft, published by CIPFA on 10 November 2008. Comments closed on 8 February 2009.
IFRS ushers in new era for local government reporting
Press release issued by CIPFA/LASAAC on 9 October 2008 announcing the ‘new governance framework for the Code of Practice on Local Authority Accounting’.
Code of Practice on Local Authority Accounting in the United Kingdom 2008: A Statement of Recommended Practice
Entry in CIPFA's online bookshop for the 2008 SORP which has effect for financial years commencing on or after 1st April 2008. CIPFA's online bookshop highlights the significant changes introduced by this version of the SORP and provides details of the contents and preface, which can be downloaded in PDF format.
Local authority accounts to follow International Financial Reporting Standards
Press release issued by CIPFA/LASAAC on 2 January 2008 which announced that ‘local authorities are to prepare their accounts following International Financial Reporting Standards (IFRS) from 1 April 2010’ and explained that CIPFA/LASAAC would be undertaking a two year programme to develop an IFRS-based code of practice for local authority accounting. An update on the latest position can be found at IFRS-based Code of Practice on Local Authority Accounting: Code Update Report.
2007
SORP 2008 Exposure Draft (PDF 913.31kb/211 pages)
Exposure draft, published by CIPFA in October 2007. Comments closed on 30 January 2008.
Code of Practice on Local Authority Accounting in the United Kingdom 2007: A Statement of Recommended Practice
Entry in CIPFA's online bookshop for the 2007 SORP which has effect for financial years commencing on or after 1 April 2007. CIPFA provides details of the contents and preface, which can be downloaded in PDF format.
2006
The invitation to comment on the exposure draft for the 2007 Local Authority SORP was published in November 2006. The website includes an Exposure Draft of New Financial Instruments Chapter (PDF 136kb/29 pages) and an Exposure Draft of Other Changes to the SORP (PDF 618kb/188 pages) alongside other material.
LASAAC Briefing: Directors of Finance Section March 2006
three-page briefing from LASAAC, available to download in PDF format, which aims to clarify specific aspects of the 2005 SORP.
CIPFA provides a brief summary in their online book shop entry for the 2006 edition of Code of Practice on Local Authority Accounting in the UK 2006: A Statement of Recommended Practice, which has effect for financial years commencing on or after 1 April 2006. CIPFA also freely provides details of the substantive changes introduced into the 2006 SORP, contents (PDF 15.2kb/2 pages) and preface (PDF 13.37kb/1 page).
2005
Invitation to Comment on the 2006 Local Authority SORP and on the new financial instruments accounting standards was published in 2005. The invitation to comment, exposure draft and discussion paper on Financial Instruments (which the page states would most probably be incorporated into the 2007 SORP) can be downloaded in word format. Responses were required by February 2 2006.
Accounting for Insurance in local authorities in Scotland (LASAAC) (PDF 103.35kb/12 pages)
Full text of a paper published by LASAAC in December 2005. The paper aims ‘to provide Scottish local authorities with modernised guidance on the application of the SORP on accounting for insurance in Scotland’.
2004
In December 2004 the Local Authority Accounting Panel released LAAP Bulletin 60
Group Accounts: Preparing to Implement the 2004 SORP's Modified Group Accounts Requirements. A separate publication Modified Group Accounts: A Practical Checklist (PDF 96.39kb/9 pages) was issued by LAASAC with guidance to Scottish local authorities preparing to implement Group Accounts.
Article on Group Accounts Proposals Contained Within the 2004 Local Authority SORP Invitation to Comment (PDF 52.51kb/6 pages)
Article on the proposals that were implemented within the 2004 SORP.
Code of Practice on Local Authority Accounting in the United Kingdom - SORP 2005: Invitation to Comment
Exposure draft published in November 2004 and included significant changes to the SORP. The invitation to comment, exposure draft and six appendices can be downloaded in word format. Responses were required by 31 January 2005.
Accounting and Auditing Standards Panel Bulletin: A comparison of financial reporting in local government with financial reporting in health (NHS Trusts) (PDF 31.95kb/10 pages)
A bulletin published by CIPFA in January 2004 which aims to ‘highlight the key differences between financial reporting and accounting in the local authority sector and financial reporting and accounting in the health sector, specifically in relation to NHS Trusts’. The bulletin compares the Local Authorities SORP with the NHS Trust Manual for Accounts. Three appendices can be downloaded from the website of the CIPFA Accounting and Auditing Standards Panel including:
2003
An article on Local Authority SORP Developments was published in the March 2003 edition of CIPFA Spectrum.
Online articles
The library provides access to a range of articles in full text from leading business, finance and management journals.
You will need to be logged-in to the website to gain full access to the range of articles available online.
Articles and books in the Library collection
To find out how you can borrow books from the Library please see our guide to book loans.
You can obtain copies of articles or extracts of books and reports by post, fax or email through our document delivery service.
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