Annual Report and Accounts 2012/13 - Royal Devon & Exeter Hospital

More documents

Recommendations

Info

ROYAL DEVON AND EXETER NHS FOUNDATION TRUST - ANNUAL ACCOUNTS 2012/13 1. ACCOUNTING POLICIES (CONTINUED) 1.4 Property, plant and equipment (continued) Measurement and revaluation NOTES TO THE ACCOUNTS All property, plant and equipment assets are measured initially at cost, representing the costs directly attributable to acquiring or constructing the asset and bringing it to the location and condition necessary for it to be capable of operating in the manner intended by management. All assets are measured subsequently at fair value. Property assets The fair value of land and buildings is determined by valuations carried out by professionally qualified valuers in accordance with the Royal Institution of Chartered Surveyors (RICS) Appraisal and Valuation Manual. The valuations are carried out primarily on the basis of depreciated replacement cost for specialised operational property based upon providing a modern equivalent asset. Existing use value is used for non-specialised operational property. For nonoperational properties, including surplus land, the valuations are carried out at open market value. The frequency of revaluation is dependent upon changes in the fair value of property assets however, in line with Monitor's view, the frequency of property asset revaluations will be at least every five years. Assets under construction are valued at cost and may subsequently be revalued by professional valuers when brought into use or when factors indicate that the value of the asset differs materially from its carrying value. Non-property assets For non-property assets the depreciated historical cost basis has been adopted as a proxy fair value. Non-property assets acquired up to 31 March 2008 were revalued through an annual uplift by the change in the value of the GDP deflator. These revalued assets are included in the non-property assets valuation, but further indexation of these assets has ceased. Additional alternative open market value figures have only been supplied for operational assets scheduled for imminent closure and subsequent disposal. Subsequent expenditure Expenditure incurred after items of property, plant and equipment have been brought into operation, such as repairs and maintenance, is normally charged to the Statement of Comprehensive Income in the period in which it is incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of an item of property, plant and equipment, and where the cost of an item can be measured reliably, the expenditure is capitalised as an additional cost of that asset or as a replacement. Depreciation Items of property, plant and equipment are depreciated on a straight-line basis over their remaining useful lives in a manner consistent with the consumption of economic or service delivery benefits. Useful lives are determined on a case by case basis. The typical lives for the following assets are: Asset category Freehold property - buildings Freehold property - dwellings Plant and machinery Equipment - transport Equipment - information technology Equipment - furniture and fittings Useful life (years) 10 - 42 32 - 47 5 - 15 5 - 7 3 - 7 5 - 10 Freehold land is considered to have an infinite life and is not depreciated. Page 13
ROYAL DEVON AND EXETER NHS FOUNDATION TRUST - ANNUAL ACCOUNTS 2012/13 1. ACCOUNTING POLICIES (CONTINUED) 1.4 Property, plant and equipment (continued) NOTES TO THE ACCOUNTS The excess depreciation on revalued assets over the historical cost is released to the income and expenditure reserve. On disposal of an asset any remaining revaluation reserve balance is released to the income and expenditure reserve. Impairment The carrying values of property, plant and equipment assets are reviewed for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Increases in asset values arising from revaluation are recognised in the revaluation reserve, except where, and to the extent that, they reverse an impairment previously recognised in operating expenses, in which case they are recognised in operating income. Decreases in asset values that are due to a loss of economic benefits or service potential in the asset are charged to operating expenses. A compensating transfer is made from the revaluation reserve to the income and expenditure reserve of an amount to the lower of (i) the impairment charged to operating expenses; and (ii) the balance in the revaluation reserve attributable to that asset before the impairment. Other impairments are treated as revaluation losses. Reversals of 'other impairments' are treated as revaluation gains. Gains and losses recognised in the revaluation reserve are reported in the Statement of Comprehensive Income. 1.5 Donated, government grant and other grant funded assets Donated and grant funded property, plant and equipment assets are capitalised at their fair value on receipt. The donation/grant is recognised as income unless the donor has imposed a condition that the future economic benefits embodied in the grant are to be consumed in a manner specified by the donor, in which case, the donation/grant is deferred within liabilities and is carried forward to future financial years to the extent that the condition has not yet been met. 1.6 Inventories and work in progress Inventories and work in progress are valued at the lower of cost and net realisable value. Cost is determined using a first in, first out method. Work in progress comprises goods in intermediate stages of production. Provision is made where necessary for obsolete, slowing moving and defective inventories and work in progress. 1.7 Provisions The Trust provides for legal or constructive obligations that are of uncertain timing or amount at the Statement of Financial Position date on the basis of the best estimate of the expenditure required to settle the obligation. The Trust uses HM Treasury's pension rate of 2.35%, in real terms, as the discount rate for early retirement and injury benefit provisions. Page 14
Page 1:
1. Our Year Royal Devon and Exeter
Page 5 and 6:
2 Royal Devon and Exeter NHS Founda
Page 7 and 8:
4 1. Our Year Royal Devon and Exete
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
10 1. Our Year Royal Devon and Exet
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
26 2. Our Trust Royal Devon and Exe
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
62 3. Quality Report Royal Devon an
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Royal Devon and Exeter NHS Foundati
Page 73 and 74:
1. Chief Executive’s Introduction
Page 75 and 76:
1. Chief Executive’s Introduction
Page 77 and 78:
Page 79 and 80:
2. Progress on our 2012/13 Prioriti
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
2. Our Priorities for 2013/14 Royal
Page 101 and 102:
2. Our Priorities for 2013/14 Royal
Page 103 and 104:
2. Statement of Assurance from the
Page 105 and 106:
Page 107 and 108:
2. 2012/13 Quality Schemes Royal De
Page 109 and 110:
2. 2012/13 Quality Schemes Royal De
Page 111 and 112:
Page 113 and 114:
2. Core Indicators Royal Devon and
Page 115 and 116:
2. Core Indicators Royal Devon and
Page 117 and 118:
Page 119 and 120:
3. Quality Indicators Royal Devon a
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
4. Annex A Royal Devon and Exeter N
Page 127 and 128:
4. Annex A Royal Devon and Exeter N
Page 129 and 130:
4. Annex B Royal Devon and Exeter N
Page 131 and 132:
4. Annex C Royal Devon and Exeter N
Page 133 and 134:
4. Annex C Royal Devon and Exeter N
Page 135 and 136:
4. Annex D Royal Devon and Exeter N
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
4. Annex E Royal Devon and Exeter N
Page 145 and 146:
68 4. Our Governance Royal Devon an
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176: 98 4. Our Governance Royal Devon an
Page 177 and 178: 100 4. Our Governance Royal Devon a
Page 179 and 180: 102 5. Our Governors and Members Ro
Page 211 and 212: 134 5. Our Governors & Members Roya
Page 213 and 214: ROYAL DEVON AND EXETER NHS FOUNDATI
Page 225: ROYAL DEVON AND EXETER NHS FOUNDATI
Page 229 and 230: 1. ACCOUNTING POLICIES (CONTINUED)
Page 235 and 236: 5. Operating expenses ROYAL DEVON A
Page 241 and 242: 19. Current trade and other payable
Page 243 and 244: 25. Related party transactions (con
show all

Annual Report and Accounts 2012/13 - Royal Devon & Exeter Hospital

Create successful ePaper yourself

Delete template?

Save as template?