34. Transition to FRS102 - Association
The Association has adopted FRS102 for the year ended 31 March
2016 and has restated the comparative prior period amounts.
Changes for FRS102 adoption
SHPS Pension
Grant accounting
Under section 28 the Group is now required to recognise the net
present value of any contractual agreements to make additional
payments for a past deficit. Using a discount rate of 2.06%, this
has resulted in a liability of £945k being recognised as a liability in
the opening reserves
Grants were previously netted off the cost of the related asset.
Under FRS102, government grants must be accounted for
under the accruals model or the performance model. As the
association accounts for its properties at cost, it has adopted
the accruals model for government grants, as required by
SORP 2014. Non-government grants are accounted for under
the performance model.
Under the accruals model, the government grants have been
allocated to the related assets and amortised over the useful
economic life of those assets. The unamortised amount is held
within deferred income, split between less than one year and
more than one year. The amount of amortised grant that has been
recognised in opening reserves is £12,070k.
Holiday pay accrual
An accrual is now made for entitlement to holiday at the year end
which has not been taken by employees. This has been calculated
based on payroll records and totalled £232k as a liability in
opening reserves.
Financial instruments
Management have reviewed financial instruments held as part of
the process of transition to FRS102 and have concluded that it is
appropriate to continue to classify all financial instruments as basic
under FRS102
Restated statement of financial position
Original reserves
Holiday pay accrual
Unpaid contributions for retirement benefits
Tangible fixed assets
31 March 2015
1 April 2014
£000 £000
57,446
51,232
-
(232)
(505)
(945)
433
3,832
57,394 53,887
Restated surplus or deficit for the year ended 31 March 2015
31 March 2015
£000
Original profit on ordinary activities before tax
3,579
Amortisation of Government grant
1,467
Movement in depreciation charge
(1,018)
Movement in depreciation eliminated on disposal
42
Amortised grant released on disposal
(58)
Unwinding of defined benefit pension charge
(27)
Pension contributions paid
92
Pension remeasurement
(570)
3,507
Financial Statements 2016
107