IFRS 16 leases
Havering Council is working to improve its financial reporting, which includes adherence to accounting standards like IFRS 16 leases, with an unqualified audit opinion not expected until 2029/30.
Havering Council's external audit recovery timeline has been extended, with external auditors Ernst & Young (EY) estimating an unqualified audit opinion may not be achievable until the 2029/30 financial year. The Audit Committee was informed on Tuesday 13 October 2026 that while improvements in audit readiness and financial reporting have been noted, historic audit backlogs and disclaimed opinions prolong the recovery.
The council's audit has been significantly impacted by historic audit backlogs and disclaimed audit opinions, with no or limited procedures completed for multiple years, including 2021/22, 2022/23, and 2023/24. IFRS 16 leases, an international financial reporting standard, requires lessees to recognise most leases on their balance sheets, forming part of the financial reporting framework councils must adhere to.
The supplied material does not indicate any upcoming discussions specifically on IFRS 16 leases. However, audit committees at Barking and Dagenham in July 2026 and Tower Hamlets in July 2025 have reviewed external auditor plans and financial matters, which encompass the application of accounting standards.
Key facts
- Havering Council's external audit recovery timeline has been extended to the 2029/30 financial year. Source 1 Source 2
- External auditors Ernst & Young (EY) estimate an unqualified audit opinion for Havering Council may not be achievable until 2029/30. Source
- Havering Council's Audit Committee received an update on Tuesday 13 October 2026. Source 1 Source 2
- Havering Council's audit has been impacted by historic audit backlogs and disclaimed audit opinions. Source 1 Source 2
- No or limited audit procedures were completed for Havering Council in 2021/22, 2022/23, or 2023/24. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 14 October 2026. Spotted a mistake? Email community@opencouncil.network.