Annual Report and Accounts - The Great Western Hospital

Great Western Hospitals NHS Foundation Trust
Accounts for the year ended 31 March 2012
ACCOUNTING POLICIES (continued)
1.23
Critical Accounting Estimates and Judgements
International accounting standard IAS1 requires estimates, assumptions and judgements to be continually evaluated
and to be based on historical experience and other factors including expectation of future events that are believed to
be reasonable under the circumstances. Actual results may differ from these estimates. The purpose of the evaluation
is to consider whether there may be a significant risk of causing a material adjustment to the carrying value of assets
and liabilities within the next financial year, compared to the carrying value in these accounts. The following significant
assumptions and areas of estimation and judgement have been considered in preparing these financial statements.
Value of land, buildings and dwellings £159m: This is the most significant estimate in the accounts and is based on
the professional judgement of the Trust’s independent valuer with extensive knowledge of the physical estate and
market factors. The value does not take into account potential future changes in market value which cannot be
predicted with any certainty.
Income for an inpatient stay can start to be recognised from the day of admission, but cannot be precisely calculated
until after the patient is discharged. For patients occupying a bed at the 2011/12 financial year end, the estimated
value of partially completed spells is shown in the table below.
Untaken annual leave: salary costs include an estimate for the annual leave earned but not taken by employees at 31
March 2012, to the extent that staff are permitted to carry up to 5 days leave forward to the next financial year. This
shown below:
Partially Completed
Spells
Untaken Annual
Leave
As at 31
March 2012
As at 31
March 2011
£'000 £'000
1,284 720
645 521
Provisions: Assumptions around the timing of the cash flows relating to provisions are based upon information from the
NHS Pensions Agency and expert opinion within the Trust and from external advisers regarding when legal issues
may be settled.
1.24 New Accounting Standards
Accounting standards that have been issued but have not yet been adopted
The following accounting standards, amendments and interpretations have been issued by the IASB and IFRIC but are
not yet required to be adopted:
Effective for the next financial year ending 31 March 2013:
Effective Date
IFRS 7 Financial Instruments Disclosure Amendments Transfer of Financial Assets 1 January 2013
IAS 12 Income Taxes Amendment 1 January 2013
Effective for future financial years:
IFRS 10 Consolidated Financial Statements 1 January 2013
IFRS 11 Joint Arrangements
1 January 2013
IFRS 12 Disclosure of Interests in Other Entities
IFRS 13 Fair Value Measurement
IAS 1 Presentation of Financial Statements on other Comprehensive Income
1 January 2013
1 January 2013
1 July 2012
IAS 27 Separate Financial Statements 1 January 2013
IAS 28 Associates and Joint Ventures
1 January 2013
IFRS 9 Financial Instruments Financial Assets, Financial Liabilities
Financial Assets
Financial Liabilities
1 January 2013
The Trust has considered the above new standards, interpretations and amendments to published standards that are
not yet effective and concluded that they are either not relevant to the Trust or that they would not have a significant
impact on the Trust’s financial statements, apart from some additional disclosures.
The Trust has not early adopted any new accounting standards, amendments or interpretations.
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