The Audit Commission has today published guidance on accounting for fixed assets under International Financial Reporting Standards.

The briefing, which is called Countdown to IFRS: Accounting for non-current assets, explains what problems could arise from IFRS for property professionals in the public sector.

In February, the Audit Commission’s deputy chairman Bharat Shah announced that nearly 25% of local authority auditors had expressed concerns about the quality or timeliness of financial information delivered for audit.

He said: “Local government does have a reputation for meeting deadlines despite the odds. But under IFRS for 2009-11 in particular, such an approach will carry significantly more risk.”

The Audit Commission’s briefing explains hurdles arising from the following technical issues:

• potential reclassification implications;
• valuation of property, plant and equipment;
• componentisation;
• impairment of assets;
• intangible assets; and
• government and non-government grants.

To read the full report, click here: Countdown To IFRS: Accounting for non-current assets

• Countdown to IFRS report by Audit Commission
• Councils face property accounting problems
• Q&A: How does IFRS affect how I do my job?
• Osborne: departments must look to privatise property
• Audit Commission scraps area assessments