Item 16 - Update on Critical Accounting Policies - Audit Committee 25 November 2008

T AGENDA ITEM 16 TRANSPORT FOR LONDON AUDIT COMMITTEE SUBJECT: UPDATE ON CRITICAL ACCOUNTING POLICIES DATE: 25 NOVEMBER 2008 1. PURPOSE 1.1 To update the Audit Committee on the Group’s critical accounting policies to be applied in deriving the form and content of TfL’s Statement of Accounts for the year ending 31 March 2009. 1.2 This update reflects the impacts of any issues arising during the preparation of the Statement of Accounts for the year ended 31 March 2008, any changes to the Code of Practice on Local Authority Accounting published by CIPFA (“the SORP”), and any other changes to UK accounting and reporting standards which may have an impact on TfL’s Statement of Accounts for the year ending 31 March 2009. 2. BACKGROUND 2.1 TfL’s Statement of Accounts are prepared in accordance with the provisions of the Audit Commission Act 1998 and the Accounts and Audit Regulations 2006 (“the Regulations”). The form and content followed in preparing the Statement are as prescribed in the Regulations and by the SORP. The accounting policies followed are also substantially as prescribed by the SORP. 2.2 The SORP is updated annually by the CIPFA/LASAAC Joint Committee, a standing committee of CIPFA and LASAAC (Local Authority (Scotland) Accounts Advisory Committee). In deriving the SORP, the Joint Committee follows the Accounting Standards Board’s Code of Practice for bodies recognised for issuing SORPs. 2.3 A ...