Key information
Decision type: Assistant Director
Reference code: ADD2338
Date signed:
Executive summary
IFRS 9 requires GLA and GLAP to undertake expected credit loss calculations and fair value assessments of loans and equity investments. These calculations are complex, sector specific and require expert knowledge of market conditions. This decision seeks approval for specialist accounting advice to ensure that the Authority’s financial statements are IFRS 9 compliant.
Decision
Part 1: Non-confidential facts and advice
The GLA and GLA Land and Property Ltd (“GLAP”) have a statutory duty to prepare financial statements that are compliant with the Code of Practice on Local Authority Accounting (the LA Code) in the United Kingdom and IFRSs as adopted by the European Union, respectively. IFRS 9 has been adopted by both the LA Code and the European Union and is applicable to the GLA’s and GLAP’s 2018/19 financial statements.
IFRS 9 requires GLA and GLAP to undertake expected credit loss calculations and fair value assessments of loans and equity investments. These calculations are complex, sector specific and require expert knowledge of market conditions. Technical accounting assistance is required to ensure that the Authority’s financial statements are compliant with the new IFRS 9 classification and measurement requirements.
GLA and GLAP obtain accounting advice that is IFRS 9 compliant thereby ensuring that the statutory accounts are free from material misstatement and provide a true and fair view of the respective entities financial position.
Quotes will be sought from three top-tier accountancy firms so as to secure value for money.
Appropriate allocations will be made from the Finance & Governance budget for 2019-20.
Signed decision document
ADD2338 Compliance with IFRS 9 - Financial Instruments