Local Authority Accounting
The Local Government in Scotland Act 2003, makes it the duty of a local authority to observe proper accounting practices.
Within the Act, references to proper accounting practices are deemed to be:
a) those which the local authority is required to observe by virtue of any enactment;
b) those which have been specified in guidance issued by the Scottish Ministers; and
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 above practices, a) has precedence over b) which has precedence over c). Where no enactments or guidance have been issued on a topic, the Code of Practice on Local Authority Accounting in the United Kingdom: A Statement of Recommended Practice (the SORP) is accepted as proper accounting practice.
Accounting Guidance
Whole of Government Accounts