Notes to the Financial Statements
54
SCIENCE FOUNDATION IRELAND ANNUAL REPORT 2015
Notes to the Financial Statements
For the year ended 31 December 2015
1 Accounting Policies
The basis of accounting and significant accounting policies adopted by Science Foundation Ireland are set out below . They have been applied consistently throughout the year and for the preceding year .
( a ) General Information Science Foundation Ireland was set up under the Industrial Development ( Science Foundation Ireland ) Act 2003 , and by the Industrial Development ( Science Foundation Ireland ) ( Amendment ) Act , 2013 , with its Head Office at Wilton Park House , Wilton Place , Dublin 2 .
Science Foundation Ireland ’ s primary objectives as set out under section 7 of the Industrial Development ( Science Foundation Ireland ) Act 2003 , as amended by the Industrial Development ( Science Foundation Ireland ) ( Amendment ) Act , 2013 , are as follows :
Science Foundation Ireland funds oriented basic and applied research in the areas of science , technology , engineering , and mathematics ( STEM ) which promotes and assists the development and competitiveness of industry , enterprise and employment in Ireland . The Foundation also promotes and supports the study of , education in and engagement with , STEM and promotes an awareness and understanding of the value of STEM to society and in particular to the growth of the economy .
Science Foundation Ireland is a Public Benefit Entity ( PBE ).
( b ) Statement of Compliance The financial statements of Science Foundation Ireland for the year ended 31 December 2015 have been prepared in accordance with FRS 102 , the financial reporting standard applicable in the UK and Ireland issued by the Financial Reporting Council ( FRC ), as promulgated by Chartered Accountants Ireland . These are Science Foundation Ireland ’ s first set of financial statements prepared in accordance with FRS 102 . The date of transition to FRS 102 is 1 January 2014 . The prior year financial statements were re-stated for material adjustments on adoption of FRS 102 in the current year . The result of this adoption can be seen in Note 16 .
( c ) Basis of Preparation The financial statements have been prepared under the historical cost convention , except for certain assets and liabilities that are measured at fair values as explained in the accounting policies below . The financial statements are in the form approved by the Minister for Jobs , Enterprise and Innovation with the consent of the Minister for Public Expenditure and Reform under the under the Industrial Development ( Science Foundation Ireland ) Act 2003 , and by the Industrial Development ( Science Foundation Ireland ) ( Amendment ) Act , 2013 .
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to Science Foundation Ireland ’ s financial statements .
( d ) Revenue Revenue is recognised on an accruals basis except in the case of Oireachtas Grants which are recognised on a cash receipts basis .
( e ) Property , Plant and Equipment Property , Plant and Equipment are stated at cost less accumulated depreciation , adjusted for any provision for impairment . Depreciation is provided on all property , plant and equipment , at rates estimated to write off the cost less the estimated residual value of each asset on a straight line basis over their estimated useful lives , as follows :
( i ) Computer Equipment & Computer Software
3 years ( ii ) Plant & Equipment 5 years
Residual value represents the estimated amount which would currently be obtained from disposal of an asset , after deducting estimated costs of disposal , if the asset were already of an age and in the condition expected at the end of its useful life .
( f ) Capital Account The Capital Account represents the unamortised funds utilised for the acquisition of Property , Plant and Equipment and is written down in line with the depreciation policy for these assets .
( g ) Foreign Currency Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates ruling at the end of the financial year . Revenues and costs are translated at the exchange rates ruling at the dates of the underlying transactions . The resultant surpluses or deficits are dealt with in the Statement of Income and Expenditure and Retained Revenue Reserves .
( h ) Employee Benefits
Short term benefits Short term benefits such as holiday pay are recognised as an expense in the year , and benefits that are accrued at year-end are included in the Payables figure in the Statement of Financial Position .
Retirement Benefits The Industrial Development ( Forfás Dissolution ) Act 2014 ( No 13 of 2014 ) which was passed into law on 16th July 2014 made provision for the dissolution of Forfás and provided for the establishment of Science Foundation Ireland as a separate legal employer . Under the legislation :
Science Foundation Ireland is responsible for the establishment of its own pension scheme .