1. Angela Brown, Director of Corporate Services SDCT Annual Meeting 2008 Financial Reporting Friday 5 th December

2. Angela Brown, Director of Corporate Services International Financial Reporting Standards (IFRS) Aims to harmonise Financial Reporting Timetable: 2008/092009/102010/11 Central Government NHS Local Government Whole of Govt Accounts ‘Dry Run’ Comparatives Comparatives UK GAAP WGA Data Basis Comparatives IFRS Comparatives IFRS

3. Angela Brown, Director of Corporate Services Key IFRS Transition Issues 07/0810/11 Financial InstrumentsLeases Employee Benefits 08/09 Minor ChangesIntangible Assets Investment Property 09/10 (early implement)Increased Disclosures PFI Schemes

4. Angela Brown, Director of Corporate Services IFRS Main Differences to UK GAAP Fixed Assets –Component Accounting necessary –Valuations are at Market Value for all assets Employee Benefits –Accrual of holiday pay and other benefits –system changes/processes required

5. Angela Brown, Director of Corporate Services Main Differences to UK GAAP Leases –Leases need split between Land and Buildings elements –Determining whether leases are finance or operating leases and applying retrospectively PFI –On balance sheet recognition

6. Angela Brown, Director of Corporate Services SORP 2008 SORP - Minor Changes - Authorised for Issue. Guidance awaited? 2009 SORP - PFI - Property Taxes - Reorganisation

7. Angela Brown, Director of Corporate Services New Code Preparation CIPFA LASAAC preparing code under oversight of Financial Reporting Advisory Board (FRAB) Draft sections already issued on Leases, PFI, Revenue Expenditure funded from Capital and Intangibles. Full code to be drafted by Spring 2009 for comment

8. Angela Brown, Director of Corporate Services Back to Basics: ‘First Principles’ Review of LA Accounts Mitigate increase in accounts length with IFRS Reduce complexity arising from: - mix of financial and regulatory reporting - funding vs. full cost - increased GAAP alignment - pressure for WGA consistency

9. Angela Brown, Director of Corporate Services Back to Basics: What Next? Working Groups to look at: - Format of Accounts - Level of Disclosure - Group Accounts - Practitioner Involvement Audit Process? (Earlier closedown and approval process?)

10. Angela Brown, Director of Corporate Services Issues to consider Planning ahead - Project management Getting other departments involved e.g. Property and HR Notifying members / governance arrangements Impact on Use of Resources

11. Angela Brown, Director of Corporate Services Questions?