Issue - meetings

To note changes in the Council’s accounting methodology.

The Committee considered a report from the Chief Accountant, Paul Taylor that sought to advise the Committee of the changes in the Council’s accounting methodology in respect of the transfer of assets from the Council to Knowle Green Estates.

The Committee were advised that various experts, including tax experts had been consulted and had concluded that this revised methodology was a sensible approach and that this would ensure that a loss or gain would not arise that would create an accounting issue for the Council.

Councillor Harvey asked if this new method of accounting would have been considered if it was not for the fact that the Council’s developments over the past 20 months had been delayed resulting in significant losses and therefore an alternative accounting method had to be considered as a way of mitigating these losses.

The Deputy Chief Executive, Terry Collier advised the Committee that this was a factor but that he had wanted to look at this as a matter of accounting principle anyway.

Terry advised the Committee that a report was due to go before the Corporate Policy & Resources Committee for their approval of the changes to the accounting methodology. He also advised that Knowle Green Estates were in agreement with the changes.

The Committee resolved to note the report.

The Committee agreed to defer this item to another meeting of the Development Sub-Committee.