April 1st 2009 to March 31st 2010

1.22 Accounting standards not yet effective andnot adopted earlyThe following standards and amendments toexisting standards have been published and aremandatory for the Trust’s accounting periodsbeginning on or after 1 April 2010 or laterperiods, but the Trust has not early adoptedthem:IFRIC 17, ‘Distribution of non-cash assets toowners’ (effective for accounting periodsbeginning on or after 1 July 2009). Thisinterpretation will not impact the Trust.IAS 27 (revised), ‘Consolidated and separatefinancial statements’, (effective for accountingperiods beginning on or after 1 July 2009). Thisrevised standard will not have an impact on theTrust.IFRS 3 (revised), ‘Business combinations’ (effectivefor accounting periods beginning on or after 1July 2009). This revised standard will not have animpact on the Trust.IFRS 2 (amendments), ‘Group cash-settledshare-based payment transactions’ (effectivefor accounting periods beginning on or after 1January 2010). This revised standard will nothave an impact on the Trust.Annual improvements 2010 and 2009. Withthe exception of the amendment to IFRS 8 inrelation to the disclosure of total assets bysegment which has been adopted by the trustin the current financial statements as notedabove, the improvements will apply to the Trustfrom 1 April 2010 and 2011 onwards. Thesefurther improvements are not expected to havea significant impact on the Trust’s financialstatements.IFRIC 19, ‘Extinguishing financial liabilities withequity instruments’. This revised interpretationwill not have an impact on the Trust.1.23 Accounting estimates, judgements andcritical accounting policiesComponent depreciationIAS 16(Property, Plant and Equipment) requiresthat “each part of an item of property, plantand equipment with a cost which is significantin relation to the total cost of the item, shall bedepreciated separately”. The standard also states,“A significant part of an item of PPE may havea useful life and a depreciation method thatare the same as the useful life and depreciationmethod of another significant part of the sameitem. Such parts may be grouped in determiningthe depreciation charge”.The Trust has elected to depreciate eachbuilding and its constituent elements as a singlecomponent on the basis that this more fairlyreflects the way that the Trust’s is managedand maintained. The appropriateness of thistreatment will be reviewed annually.This change in accounting estimate has beenapplied from 1 April 2009 resulting in a reductionto the annual depreciation charge of £1.2m.Revaluation of land, buildings and dwellingsAt 31st March 2010 the Trust’s valuer carried outa revaluation of the land, buildings and dwellingsto reflect the continued economic downturnduring 2009/10. This has resulted in a downwardvaluation of these non-current assets of £24.5million. (see Note 11 for further details)IAS 32, ‘Financial instruments. Presentation onclassification or rights issues’ This revised standardwill not have an impact on the Trust.IAS 39, ‘Eligible hedged items’. This revisedstandard will not have an impact on the Trust.IFRS 9, ‘Financial instruments. The trust will applyIFRS 9 from 1 April 2013. It is not expected tohave a material impact on the Trust’s financialstatements.IFRIC 14, IAS 19 ‘Prepayments of a minimumfunding requirement’. This revised standard andinterpretation will not have an impact on theTrust.”IFRIC 18, ‘Transfer of assets from customers’. Thisrevised standard will not have an impact on theTrust.xivBlackpool, Fylde and Wyre Hospitals