Its full steam ahead for FRS17

5 Dec 02
Local authorities will have to stick to the April 2003 deadline for implementing FRS17 the controversial accounting standard under proposals published by CIPFA in a consultation paper last week.

06 December 2002

FRS17 requires the disclosure of assets and liabilities held by organisations' pension funds. The Accounting Standards Board – which supports CIPFA's proposals – had previously decided to defer compulsory full implementation for private companies until 2005.

It believes immediate implementation would be too onerous, as companies will also have to use international standards from 2005. These are expected to include a new standard on pensions that is similar, but probably not identical to, FRS17.

CIPFA and the ASB believe that the different circumstances affecting local authority accounts means that deferral for them would be wrong. But FRS17 will not be fully adopted within the Statement Of Recommended Practice for local government until secondary legislation confirms that any deficits in pension funds will not have to be corrected immediately.

The consultation paper also includes a recommendation that audit fees and payment to an auditor for non-audit work should be included in local government accounts, bringing them into line with the rest of the public sector.

Consultation is open until January 29 and documents can be accessed at www.cipfa.org.uk

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