FINAL ACCOUNTS 2010 - National Transport Authority

COMMISSION FOR TAXI REGULATIONStatement of AccountingPoliciesThe following accounting policies have been appliedconsistently in dealing with items which are consideredmaterial in relation to the financial statements.A. Post Balance sheet eventOn 1 January 2011 the Commission for Taxi Regulationwas subsumed into the National Transport Authority.Statutory instrument No.614 of 2010 appointed 1January 2011 as the day for the dissolution of theCommission for Taxi Regulation.B. Basis of AccountingThe financial statements are prepared under theaccruals method of accounting, except as statedbelow, and under the historical cost convention in theform approved by the Minister for Transport, with theconsent of the Minister for Finance.Financial Reporting Standards recommended by therecognised accountancy bodies are adopted, as theybecome operative.C. IncomeIncome includes income arising from licensing,assessment and enforcement activities.D. TaxationThe Commission is exempt from Corporation Tax underSection 41 of the Finance Act, 1991.E. Tangible Assets and DepreciationTangible fixed assets are shown at cost lessaccumulated depreciation. Depreciation is charged inthe income and expenditure account, on a straightlinebasis, at the annual rates set out below, so as towrite off the assets, adjusted for estimated residualvalue, over the expected useful life of each appropriatecategory.(i) Leasehold 5%(ii) Computer equipment and software 33%(iii) Motor Vehicle 20%(iv) Fixtures and fittings 10%(v) Office equipment 10%A full year’s depreciation is provided for in the year ofacquisition.F. Capital AccountThe Capital Account represents the unamortised valueof income used for capital purposes.G. SuperannuationIn 2010, the Commission received ministerial approvalfor a Commission of Taxi Regulation (Employee)Superannuation scheme and a Commission forTaxi Regulation (Members Superannuation schemealong with a Spouses’ and Children’s contributorysuperannuation scheme for both main schemes).The scheme structures are based on the Departmentof Finance unfunded model scheme for State Bodies.Pension benefits payable under the schemes arefunded by the Exchequer. In addition, the Commissionarrangements will have a number of specificcharacteristics:• The Commission will make an agreed contribution tothe Department of Transport.• The contribution comprises of an employee elementalong with an employer element;• The employer contribution amounts to 25% of salaryfor employees on full PRSI, and 30% for those onmodified PRSI• There is an explicit commitment from the Departmentof Finance that the Department of Transport’s votewill be put in funds by the Exchequer to meet pensionbenefits as they fall due.The Commission considers that its pensionarrangements as described above have the samefinancial effect from the Commission’s point of view as adefined contribution scheme. Contributions are chargedto the income and expenditure account in the year inwhich they become payable.H. Period of AccountsThe financial statements cover the period 1 January2010 to 31 December 2010.7