SCIENCE FOUNDATION IRELAND ANNUAL REPORT 2015
55
Notes to the Financial Statements
For the year ended 31 December 2015
SFI Staff who were members of the Forfás
Pension scheme join the new scheme on
superannuation terms no less favourable than
those they enjoyed under the Forfás scheme
immediately before the date of transfer.
SFI is responsible for the pensions of staff who
retire after 16th July 2014.
The Department of Jobs, Enterprise and
Innovation assumes legal responsibility for the
existing Forfás pension scheme and existing
SFI pensioners and former staff with preserved
benefits.
(k) Critical Accounting Judgements and Estimates
The preparation of the financial statements requires
management to make judgements, estimates and
assumptions that affect the amounts reported for
assets and liabilities as at the balance sheet date and
the amounts reported for revenues and expenses
during the year. However, the nature of estimation
means that actual outcomes could differ from those
estimates. The following judgements have had the
most significant effect on amounts recognised in the
financial statements.
Depreciation and Residual Values
The Directors have reviewed the asset lives and
associated residual values of all fixed asset classes,
and in particular, the useful economic life and residual
values of fixtures and fittings, and have concluded
that asset lives and residual values are appropriate.
Retirement Benefit Obligation
The assumptions underlying the actuarial valuations
for which the amounts recognised in the financial
statements are determined (including discount rates,
rates of increase in future compensation levels,
mortality rates and healthcare cost trend rates)
are updated annually based on current economic
conditions, and for any relevant changes to the terms
and conditions of the pension and post-retirement
plans.
The assumptions can be affected by:
Employee pension contributions are paid to the
Exchequer.
Science Foundation Ireland also operates the Single
Public Services Pension Scheme (“Single Scheme”),
which is a defined benefit scheme for pensionable
public servants appointed on or after 1 January 2013.
Single Scheme members’ contributions are paid over
to the Department of Public Expenditure and Reform
(DPER).
Pension costs reflect pension benefits earned by
employees, and are shown net of staff pension
contributions which are remitted to the Department
of Jobs, Enterprise and Innovation. An amount
corresponding to the pension charge is recognised as
income to the extent that it is recoverable.
Actuarial gains or losses arising on scheme liabilities
are reflected in the Statement of Comprehensive
Income, and a corresponding adjustment is
recognised in the amount recoverable from the
Department of Jobs, Enterprise and Innovation.
The financial statements reflect, at fair value, the
assets and liabilities arising from Science Foundation
Ireland’s pension obligations and any related funding,
and recognises the costs of providing pension
benefits in the accounting periods in which they are
earned by employees. Retirement benefit scheme
liabilities are measured on an actuarial basis using
the projected unit credit method. Deferred pension
funding represents the corresponding asset to be
recovered in future periods from the Department of
Jobs, Enterprise and Innovation.
(i) Operating Leases
Rental expenditure under operating leases is
recognised in the Statement of Income and
Expenditure and Retained Revenue Reserves as
they fall due.
(j) Research Grant Paym ents
Amounts paid to Research Bodies on foot of research
grants awarded are charged to the Statement of
Income and Expenditure and Retained Revenue
Reserves in the year of payment.
(i) The discount rate, changes in the rate of return
on high-quality corporate bonds
(ii) Future compensation levels, future labour
market conditions
(iii) Changes in Demographics