Annual Report and Accounts 2012/13 - Royal Bournemouth Hospital

Financial AccountsNotes to the accounts1 Accounting policies1.1 Accounting policiesMonitor has directed that the financialstatements of the NHS Foundation Trustshall meet the accounting requirementsof the NHS Foundation Trust AnnualReporting Manual which shall be agreedwith HM Treasury. Consequently, thefollowing financial statements havebeen prepared in accordance with the2012/13 NHS Foundation Trust AnnualReporting Manual issued by Monitor.The accounting policies contained inthat manual follow International FinancialReporting Standards (IFRS) and HMTreasury’s Financial Reporting Manualto the extent that they are meaningfuland appropriate to the FoundationTrust. The accounting policies havebeen applied consistently in dealing withitems considered material in relation tothe accounts. The Foundation Trust is asingle entity, therefore no consolidation isrequired in these accounts.Accounting conventionThese financial statements have beenprepared under historical cost conventionmodified to account for the revaluation ofproperty, plant and equipment, intangibleassets, and certain financial assets andfinancial liabilities.Acquisitions and discontinuedoperationsActivities are considered to be ‘acquired’only if they are taken from outside thepublic sector. Activities are considered‘discontinued’ if they transfer from onepublic body to another. The FoundationTrust has no acquisitions or discontinuedoperations to report within theseaccounts.Critical accounting judgementsand key sources of estimationuncertaintyIn the application of the FoundationTrust’s accounting policies, managementis required to make judgements,estimates and assumptions about thecarrying amount of assets and liabilitiesthat are not readily apparent from othersources. The estimates and associatedassumptions are based on historicalexperience and other factors that areconsidered to be relevant. Actual resultsmay differ from those estimates. Theestimates and underlying assumptions arecontinually revised if the revision affectsonly one period, or in the period of therevision and future periods, if the revisionaffects both current and future periods.Details of key accounting judgements andestimations are contained within Note 31to these accounts.Operating segmentsOperating segments are reported ina manner consistent with the internalreporting provided to the chief operatingdecision maker. The chief operatingdecision maker, who is responsiblefor allocating resources and assessingperformance of the operating segments,has been identified as the FinanceCommittee that makes strategicdecisions.Recently issued IFRS AccountingStandardsThe following standards, amendmentsand interpretations have been issued bythe International Accounting StandardsBoard (IASB) and International FinancialReporting Interpretations Committee(IFRIC) but have not yet been adoptedin the Annual Reporting Manual. Monitordoes not permit the early adoption ofaccounting standards, amendmentsand interpretations that are in issueat the reporting date but effective at asubsequent reporting period.Annual Report and Accounts 2012/13 21