Statutory Accounting Guidance issued by Scottish Ministers

Statutory Accounting Guidance

Section 12 of the local government in Scotland Act 2003 places a duty on to observe proper accounting practices.

Under that Act proper accounting practices fall within one or more of the following:

(a) those which the local authority is required to observe by virtue of any enactment;

(b) those which have been specified in guidance issued for the purposes of this section and that section by the Scottish Ministers;

(c) those which, whether by reference to any generally recognised, published code or otherwise, are regarded as proper accounting practices to be observed in the preparation and publication of accounts of local authorities.

In the event of a conflict in any respect between the practices within paragraph (a) and those within paragraph (b) or (c), only those within paragraph (a) are to be regarded as proper accounting practices in that respect, and in the event of a conflict in any respect between those within paragraph (b) and paragraph (c), only those within paragraph (b) are to be so regarded.

The 'Code of Practice on Local Authority Accounting in the UK', published by CIPFA/LASAAC is the generally recognised published Code, and therefore has statutory backing. Where Scottish Ministers consider that certain costs, which arise from proper accounting practices, should not be a charge to the General Fund, will issue statutory guidance under section 12(b) of the 2003 Act. Such guidance takes precedence over the Code.