Agenda item

The Committee received a report of the Corporate Director of Resources that provided an update on the County Council’s accounting policies in the preparation of the 2023/24 Statement of Accounts taking into consideration the potential impact of code amendments regarding materiality (for copy see file of minutes).

Mr I Rudd asked if any other local authorities were taking a different view on the accounting policy.

P Darby was not aware of divergence and that as far as he was aware all had followed the code of practice as this was the path of least resistance and allowed for consistency.

J McMahon stated there was an issue with the different material levels as to what could not be taken out as monetary but had to put through the code to follow the same practice.  She noted that these may change but they would be discussed beforehand.

P Darby added that the 2023/24 guidance for external auditors discussed across the board was to roll over and to consider what could technically be done with revenue in a years time and what factored in due to materiality. 

Mr I Rudd referred to the supplementary on page 126 of the report and how this measured the amount of capital costs in dismantling and removing the item and restoring it on site on which it was located.  He queried if this was included in the cost of the asset.

P Darby responded that the asset would include construction costs and costs to clean the site before construction could take place.  The capital element would consider all costs. It would not include any costs to dismantle or remove the asset in the future.

J McMahon explained that to build a new asset all costs would be included to dismantle the old building and clear the site before the construction could begin.

P Darby thought it could be made clearer as the cost of the asset under construction.

Resolved:

i)               That the change to IAS1 and its potential effect following initial

assessment on the accounting policies regarding materiality be noted.

ii)             That the accounting policies (and potential changes under IAS1)

outlined in Appendix 2 be reviewed.

iii)    That their use based on 2022/23 appropriateness in the preparation of  

 the 2023/24 financial statements be approved.

iv)            That the Corporate Director of Resources be authorised to review the

  accounting policies as necessary, including for materiality, and

 report any changes to the Audit Committee.