NIPS Annual Report and Accounts 2012-13 - Department of Justice

ANNUAL
REPORT
and Accounts
76
- Permanent buildings up to 55 years
- Temporary buildings 10 - 25 years
- Plant and Equipment 3 - 25 years
- Furniture and
Office Equipment
3 - 15 years
- Information Technology
and Software
3 - 8 years
- Vehicles 5 - 20 years
1.7 Realised Element of Depreciation from
Revaluation Reserve
Depreciation is charged to expenditure on the
revalued amount of property, plant and equipment.
An element of the depreciation therefore arises due
to the increase in valuation and is in excess of the
depreciation that would be charged on the historical
cost of assets. The amount relating to this excess is
a realised gain on revaluation and is transferred from
the Revaluation Reserve to the General Fund.
1.8 Inventories
Inventories are valued at the lower of cost or net
realisable value.
1.9 Pension Costs
Past and present employees are covered by the
provisions of the Principal Civil Service Pension
Scheme (Northern Ireland) [PCSPS (NI)] and the
Principal Civil Service Pension Scheme (GB) [PCSPS
(GB)]. Liability for payment of future benefits is
a charge to the PCSPS (NI) and PCSPS (GB). The
Agency meets the cost of pension cover through
the payment of charges calculated on an accruing
basis. Contributions are charged to the Statement of
Comprehensive Net Expenditure as incurred.
1.10 Employee Benefits
Under IAS 19 an employing entity should recognise
the undiscounted amount of short term employee
benefits expected to be paid in exchange for the
service. The Northern Ireland Prison Service has
therefore recognised both annual and flexi leave
entitlements that have been earned by the year
end but not yet taken. These are included in Current
Liabilities and in Staff Costs for both administration
and programme staff across the service.
1.11 Provision for Liabilities and Charges
The Northern Ireland Prison Service provides for
legal and constructive obligations, which 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. Where the effect of the time value of
money is material, the estimated cash flows are
discounted
1.12 Contingent Liabilities
In addition to contingent liabilities disclosed in
accordance with IAS 37, the Northern Ireland Prison
Service discloses for parliamentary reporting and
accountability purposes certain statutory and nonstatutory
contingent liabilities where the likelihood
of a transfer of economic benefit is remote, but
which have been reported to the Northern Ireland
Assembly in accordance with the requirements of
Managing Public Money (Northern Ireland).
Where the time value of money is material,
contingent liabilities which are required to be
disclosed under IAS 37 are stated at discounted
amounts and the amount reported to the Northern
Ireland Assembly separately noted. Contingent
liabilities that are not required to be disclosed by
IAS 37 are stated at the amounts reported to the
Northern Ireland Assembly.
1.13 Operating Leases
Operating lease rentals are charged to the
Statement of Comprehensive Net Expenditure as
incurred.