Agenda item

The Committee considered a report of the Corporate Director of Resources provided a summary of the key changes and implications of implementing accounting standard IFRS16 Leases (for copy see file of minutes).

P Darby responded to queries on the IFRS 16 Leases that the process was to bring Local Authorities in line with the private sector, to develop transparency and harmonise the accounts.  The changes were originally brought in so that the private sector accounts were not being distorted by leasing arrangements.   He advised that the process of complying with IFRS16 reporting requirements would not affect the cost of borrowing or impact on the DCC budgets per se.  He stated the biggest issue was that the balance sheet would be grossed up for assets and liabilities. The biggest issue that distorted the DCC accounts was how the pension fund liabilities were accounted for currently. 

Resolved:

That the report be noted.