j237504-16.htm
2. Prior Year Adjustments
Donated Asset Reserve
The FReM accounting policy for assets financed by government grant and donations was changed in 2011-12. Previously the value of the financing provided by grant or donation was taken to a government grant reserve or donated asset reserve respectively and released to the Statement of Comprehensive Net Expenditure over the life of the asset.
FRAB (100) 04, which proposed amending the treatment of government grants and donated assets to align more closely with IAS 20, was adopted in the 2011-12 FReM. This change in accounting policy was also implemented to achieve consistent accounting of capital non-exchange transactions between central and local government for inclusion within the Whole of Government Accounts from 2011-12.
In accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, this is treated as a change in accounting policy and therefore prior year comparatives balances have been restated for three financial years. The Donated Asset Reserve and Government Grant Reserves no longer exist and the opening balances have been restated to reflect this, with the balances transferred between the General Fund and Revaluation Reserve.
Table 1 opposite illustrates the impact of this change on the comparative figures for the Statement of Financial Position at 31 March 2011 and 31 March 2010. Table 2 overleaf illustrates the impact of this change on the comparative figures for the Statement of Comprehensive Net Expenditure for the year ended 31 March 2011.
| Previous Accounts | Donated Assets | Restated at 31/3/11 | |
|---|---|---|---|
| £’000 | £’000 | £’000 | |
| Non-current assets | |||
| Property, plant & equipment | 16,502,905 | 0 | 16,502,905 |
| Intangible assets | 14 | 0 | 14 |
| Financial assets | 75,320 | 0 | 75,320 |
| Other receivables | 971 | 0 | 971 |
| Total non-current assets | 16,579,210 | 0 | 16,579,210 |
| Current assets | |||
| Trade and other receivables | 96,221 | 0 | 96,221 |
| Cash & cash equivalents | 0 | 0 | 0 |
| Financial assets | 2,038 | 0 | 2,038 |
| Total current assets | 98,259 | 0 | 98,259 |
| Total assets | 16,677,469 | 0 | 16,677,469 |
| Current liabilities | |||
| Provisions | (32,025) | 0 | (32,025) |
| Trade payables | (38,804) | 0 | (38,804) |
| Other payables | (142,237) | 0 | (142,237) |
| Financial liabilities | (4,710) | 0 | (4,710) |
| Total current liabilities | (217,776) | 0 | (217,776) |
| Total assets less current liabilities | 16,459,693 | 0 | 16,459,693 |
| Non-current liabilities | |||
| Provisions | (43,822) | 0 | (43,822) |
| Other payables | (13,325) | 0 | (13,325) |
| Financial liabilties | (195,164) | 0 | (195,164) |
| Total non-current liabilities | (252,311) | 0 | (252,311) |
| Assets less liabilities | 16,207,382 | 0 | 16,207,382 |
| Taxpayers' equity | |||
| General fund | 8,263,562 | 813 | 8,264,375 |
| Donated asset reserve | 813 | (813) | 0 |
| Revaluation reserve | 7,943,007 | 0 | 7,943,007 |
| Total taxpayers' equity | 16,207,382 | 0 | 16,207,382 |
| Previous Accounts | Donated Assets | Restated at 31/3/10 | |
|---|---|---|---|
| £’000 | £’000 | £’000 | |
| Non-current assets | |||
| Property, plant & equipment | 15,377,492 | 0 | 15,377,492 |
| Intangible assets | 13 | 0 | 13 |
| Financial assets | 66,556 | 0 | 66,556 |
| Other receivables | 3,259 | 0 | 3,259 |
| Total non-current assets | 15,447,320 | 0 | 15,447,320 |
| Current assets | |||
| Trade and other receivables | 61,505 | 0 | 61,505 |
| Cash & cash equivalents | 0 | 0 | 0 |
| Financial assets | 2,038 | 0 | 2,038 |
| Total current assets | 63,543 | 0 | 63,543 |
| Total assets | 15,510,863 | 0 | 15,510,863 |
| Current liabilities | |||
| Provisions | (31,314) | 0 | (31,314) |
| Trade payables | (9,014) | 0 | (9,014) |
| Other payables | (184,719) | 0 | (184,719) |
| Financial liabilities | (4,377) | 0 | (4,377) |
| Total current liabilities | (229,424) | 0 | (229,424) |
| Total assets less current liabilities | 15,281,439 | 0 | 15,281,439 |
| Non-current liabilities | |||
| Provisions | (37,900) | 0 | (37,900) |
| Other payables | (9,189) | 0 | (9,189) |
| Financial liabilties | (199,875) | 0 | (199,875) |
| Total non-current liabilities | (246,964) | 0 | (246,964) |
| Assets less liabilities | 15,034,475 | 0 | 15,034,475 |
| Taxpayers' equity | |||
| General fund | 8,000,508 | 890 | 8,001,398 |
| Donated asset reserve | 890 | (890) | 0 |
| Revaluation reserve | 7,033,077 | 0 | 7,033,077 |
| Total taxpayers' equity | 15,034,475 | 0 | 15,034,475 |
| Previous Accounts | Donated Assets | Restated at 31/3/11 | |
|---|---|---|---|
| £’000 | £’000 | £’000 | |
| Administration Costs | |||
| Staff costs | 13,873 | 0 | 13,873 |
| Other administration costs | 5,703 | 0 | 5,703 |
| Operating income | (77) | 77 | 0 |
| Total administration costs | 19,499 | 77 | 19,576 |
| Programme costs | |||
| Staff costs | 4,121 | 0 | 4,121 |
| Programme costs | 1,632,296 | 0 | 1,632,296 |
| Income | (2,281) | 0 | (2,281) |
| Total programme costs | 1,634,136 | 0 | 1,634,136 |
| Totals | 1,653,635 | 77 | 1,653,712 |
| Net operating costs | 1,653,635 | 77 | 1,653,712 |