Issue - meetings

To receive an update on changes to accounting policies.

The Assistant Director Finance updated the Committee on changes to the accounting policies.

During the discussion of this item, the following points were made:

·       It was best practice to bring changes to the accounting policies to the Audit Committee prior to the closure of accounts.

·       There were two significant changes to the policies.

Ø  Revaluations policy – a new, ‘basket of goods’ approach would be taken. This would allow greater benchmarking within the asset class.

Ø  Date assets valued at – going forwards valuations would be started earlier, with an aim to value as at 1 January of the year to which the accounts related.

·       The changes had been discussed with the external auditors.

·       Councillor Sargeant welcomed the new valuations approach which had been discussed by the Committee in the previous municipal year.

·       Councillor Gee questioned what would happen should conditions change and a valuation had to be amended, and whether that would have an impact on the valuation of other assets within its class.  The Assistant Director Finance commented that if there was significant change to an asset it would indicate that officers would either need to revalue the other assets within the class or to use the asset that was revalued as a proxy for a desktop revaluation of all the other assets in the class.

·       In response to a question from Councillor Younis regarding the valuation classes, the Assistant Director Finance clarified that the designation of classes was under the CIPFA Code and the accounting policies was a decision of the council.

RESOLVED:  That the revised Statement of Accounting Policies be approved for adoption and inclusion in the Statement of Accounts for the year ended 31 March 2021.