IFRS implementation on track says FRAB

Society of Procurement Officers

The Financial Reporting Advisory Board (FRAB) published its 12th annual report, which highlights that satisfactory progress has been made to date by government departments in implementing the Treasury’s trigger point strategy for the application of EU adopted international financial reporting standards, from 2009-10.
The Financial Reporting Advisory Board (FRAB) today published its 12th annual report, which highlights that satisfactory progress has been made to date by government departments in implementing the Treasury’s trigger point strategy for the application of EU adopted international financial reporting standards, from 2009-10.
In its 2008 report the FRAB highlighted the need for government departments to ensure that they are prepared for the introduction of international financial reporting standards (IFRS), and warned that the implementation of IFRS, scheduled for 2009-10, should not be permitted to slip.
Commenting on the report, Chairman Elwyn Eilledge CBE, said:
“The implementation of IFRS is challenging, but the Board is pleased to note that the implementation of the Treasury’s trigger point strategy by departments is beginning to show satisfactory results. At this stage in preparations, satisfactory progress has been made in the first two trigger points, and the project remains on track for meeting the 2009-10 timetable. The production of ‘shadow’ IFRS based resource accounts for 2008-09 by departments represents the next key milestone in their preparation for the transition to IFRS. The shadow accounts will be subject to audit procedures.
The FRAB is particularly pleased to note that the Treasury has introduced additional corporate governance arrangements, involving Board representation, to oversee the final stages of the adoption of IFRS. The FRAB is encouraged by the progress made over the last year and will continue to monitor this project, offering its advice to the Treasury as required on any remaining IFRS issues, to ensure the 2009-10 timetable is achieved.”
The Board also reports that it has agreed the extension of its remit to include oversight of the Code of Practice on Local Authority Accounting in the United Kingdom, with effect from 2010-2011, when local authorities complete the move to IFRS-based financial reporting. The Board has made a number of changes to its terms of reference and membership to reflect this extension in the scope of its responsibilities.
The report acknowledges the Treasury’s efforts on ongoing issues of interest to the Board, in particular its work on the Alignment project.
The FRAB reports that the alignment proposals, agreed in principle by the Board, seek to improve the alignment of budgets, Estimates and resource accounts. These include a proposal to introduce changes to the departmental resource accounting boundary that will generally result in the consolidation of Executive non-departmental public bodies, which is something the Board has encouraged in previous reports.
Looking ahead, the Board expects to consider publications issued by the International Accounting Standards Board (IASB) and the International Public Sector Accounting Standards Board that may impact on future public sector accounting.

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