Local Government financial reporting requirements

Closed 19 Jan 2018

Opened 27 Nov 2017

Feedback Updated 26 Feb 2018

We Asked

We asked for feedback on the proposed introduction of new financial reporting requirements for Local Government.

You Said

The Consultation attracted 17 responses in total, 10 uploaded to the Consultation Hub directly by respondents, 4 by way of letter received within Treasury, and 3 by way of email to Director, AAD.

Permission was granted to publish the responses in full in 8 cases, while a further 4 allowed publication anonymously. 5 responses are not published due to consent purposes.

Although 3 of the 17 responses were received after the consultation deadline,  consideration was given to these responses as far as possible.

We also held a face-to-face consultation with key technical representatives from the sector to discuss responses received, assisting towards proposing consensus recommendations to take into account for updating the regulations. 

Whilst all responses have been considered, only those providing permission to publish have been included within this document.

We Did

We are publishing the responses to the Consultation document. We have considered the responses and where we have considered it appropriate, amended the proposals. 

The new regulations will be submitted to Tynwald for approval in March 2018.

Results Updated 26 Feb 2018

Files:

Overview

To inform Local Government bodies and other interested stakeholders of the proposed introduction of new financial reporting requirements for the sector, and to seek the views of all stakeholders and to receive feedback on the proposals.

Why We Are Consulting

Since the introduction of the Accounts & Audit Regulations 2013 and in particular the Isle of Man Statement of Recommended Practice 2007: Accounting for entities subject to the Audit Act 2006 (‘the SORP’) the regulatory accounting framework applicable both in the UK and internationally has changed significantly.

There is an increasing risk of ambiguity in relation to certain accounting treatments and risk of the existing financial reporting requirements falling behind internationally accepted best practice. The SORP in particular is in need of fundamental review and replacement.

Consequently the Treasury’s Audit (Consultative) Committee has undertaken a review of the existing regulations and SORP and is now proposing to amend the financial reporting requirements applicable to the sector as outlined in the consultation.

The proposed amendments would be implemented via a new set of Accounts & Audit Regulations to come into effect for reporting periods commencing on or after 1 April 2017.

What Happens Next

Following consideration of the consultation feedback, Treasury will submit a revised set of Accounts & Audit Regulations to replace the existing regulations and the Statement Of Recommended Practice.

Areas

  • All Areas

Audiences

  • Anyone from any background

Interests

  • Policies, strategies & plans
  • Finance