Our latest Asset Manager user group brought together finance and asset management professionals from across the UK to discuss the key challenges and lessons emerging from the 2024/25 reporting cycle. With sessions on IFRS16, audits, environmental reporting, and the future of the Asset Manager product roadmap, the discussions offered a candid snapshot of what’s working well – and where local authorities still face hurdles. 

IFRS16: Adapting to change 

As part of the IFRS16 update, David Ellis, FAN Advisor at CIPFA, provided early insight into how authorities are adapting to the latest reporting requirements. 

Implementation of IFRS16 remains one of the most significant areas of change for local authorities. Early feedback from the Local Government Accounting Conference in July highlighted that the most common leases under consideration were for property and vehicles, with over half (57%) of authorities managing more than 50 individual lease arrangements. Using audience polling, the average preparation readiness was scored at 3.3 out of 5, with most authorities acknowledging the significant preparation required. 

While CIPFA guidance was considered helpful by 37%, 63% of respondents found it only partly helpful, suggesting improvements such as more worked examples, greater clarity on transitional arrangements, and guidance on handling leases that roll over. 

Feedback on key challenges in preparing for IFRS16 included poor or inconsistent leasing records, difficulty obtaining information, problems only apparent once deep in the details, PFI complexities, difficulty getting buy-in from others, and lack of capacity. 

Looking ahead, the 2025/26 Code introduces changes that will impact asset valuation measurement. David Ellis highlighted that each asset will require a formal valuation once every five years, or on a rolling five-year basis, with indexation applied in the intervening years. The previous requirement (under 4.12.37 of the Code) to demonstrate that asset values are materially correct at the balance sheet date has now been replaced with this new indexation approach. It’s fair to say the old requirement often led to additional work for authorities and auditors – conducting formal valuations annually or proving that unvalued assets were not materially misstated. 

The Code does not prescribe which indices to use, leaving authorities to exercise judgment and document their decisions. Where no suitable index exists, a desktop evaluation in year three is recommended. 

Authorities also sought clarity on how to apply indexation in practice. It should be applied to closing balance sheet values, accounting for in-year transactions such as additions, replacements, depreciation, or impairments. Formal valuations are still required in cases of reclassification or evidence of impairment, but routine in-year capital expenditure no longer triggers a formal revaluation. 

Overall, the shift to a five-year rolling valuation programme with intervening indexation is designed to streamline reporting, reduce unnecessary workload, and allow finance teams to focus on areas where material judgments and assessments are required. While the first year of IFRS16 implementation has been intensive, authorities are optimistic that, with appropriate guidance and system support, future IFRS16 reporting will be far more manageable. 

If you would like full information on the 2025/26 Code changes, including special transition arrangements and further detail on indexation, please do get in touch. 

Audits Roundtable: Challenges and Insights 

During the user group session, our Audit Roundtable highlighted the more common causes of delay, including late starts, availability of auditors, and issues with valuations. Staff turnover among junior audit team members and the need for auditors to review existing work also contributed to delays. Practitioners noted that detailed explanations requested by auditors were often unclear initially, making real-time discussions more effective than email correspondence. 

Feedback showed regional variations in audit timetables, with some authorities aiming for completion in November and others in December. Common challenges identified included internal and external resource constraints, ensuring sufficient working papers, and verifying access and data entry checks in finance and asset systems. 

Environmental Impact Reporting: The Next Challenge 

Suggested improvements to the audit process included simplifying existence testing, better understanding of public-sector-specific practices (like the collection fund), and reducing the focus on minuscule differences in data such as room dimensions. Clearer, more user-friendly reports, tailored to authority-specific needs, were also highlighted as a priority. 

There are sustainability reporting plans under consideration as part of the CIPFA-led 2026/27 Code consultation, which closed in mid-October and is now being evaluated. In our open session on environmental impact reporting, it was clear that sustainability reporting remains at an early stage. Some authorities have not yet started collecting data, while others expressed uncertainty about future requirements and how best to prepare for them. 

Informing Our Product Roadmap: Building Together 

Our product roadmap continues to be shaped by the ideas and experiences shared by our users. Every piece of feedback – whether from surveys, user groups, or direct conversations – helps us prioritise the improvements that make the biggest difference in your day-to-day work. 

Across all sessions, one message was clear: collaboration, knowledge sharing, and practical guidance are essential to managing the complexities of modern local authority finance. From IFRS16 implementation and audits to product development and environmental reporting, our Asset Manager user groups enable peers and experts to come together, share experience, and drive improvement across the sector. 

At Infoshare+, we take these conversations and insights directly into how we develop and evolve Asset Manager. Our goal is to ensure that every user gets the most value from the system – not just as a compliance tool, but as a platform that supports smarter decision-making, more efficient workflows, and clearer reporting. By listening to our users and responding to real-world challenges, we continue to build functionality that meets the needs of finance professionals today while anticipating those of tomorrow. 

If you have any questions about your Asset Manager platform or would like to find out how your organisation can make the most of its capabilities, please get in touch with one of our experts here.