Implementation of IFRS in central government from 2008-09 onwards ...
will need to be re-stated on an IFRS basis so that the 2008/09 accounts ... 02890 765689
Government to adopt IFRS accounting standard
22 March 2007 In Accountancy
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The government is to adopt IFRS international accounting standards from the beginning of next year, Accountancy Age reports.Officials confirmed that the government would move from UK GAAP from 2008, meaning that more private finance initiatives (PFI) would be back on its books.
According to the Financial Times, the new rules will bring the government more in line with practice in the private sector.
Officials at the Treasury conceded that it would lead to around £40 billion worth of PFI projects being on the government's balance sheet.
Meanwhile, some overhauls to HM Revenue & Customs' criminal investigation powers were unveiled in a Budget press release.
"Under the new approach, HMRC's investigatory powers in England, Wales and Northern Ireland will be based on the Police and Criminal Evidence Act (PACE)," it said. "Consistent provisions will be applied for Scotland, where PACE does not apply."
The move had been expected by tax professionals, some of whom are worried about taxmen receiving police powers.
Darling defers IFRS
Financial Management (UK), April, 2008
The UK government has delayed implementing international financial reporting standards (IFRS) for the public sector for another year. In his 2008 budget the chancellor, Alistair Darling (pictured), recognised the scale of the challenge, particularly in relation to private finance initiative (PFI) accounting, and announced that government accounting policies will now require full implementation of IFRS for the year ending March 31,2010. This means that PFI will remain off balance sheet for a further year.
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Mark Williams, a member of Deloitte's government accounting advisory team, pointed out that the private sector had had five years to make the transition to IFRS. Although no firms missed that deadline, there were times when failure seemed possible, he said. "An incidental result of delaying IFRS is that the government won't need to bring what some commentators say could be up to 30bn [pounds sterling] of PFI spending on to its balance sheet for another year. Although it was never certain that this would become government debt, there are significant implications for the government's debt position and its ability to comply within its own fiscal rules," Williams said.
"A year delay does not mean that public bodies can 'park' the issue. It is paramount that they keep up the momentum," he added.
COPYRIGHT 2008 Chartered Institute of Management Accountants (CIMA)
COPYRIGHT 2008 Gale, Cengage Learning
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