Parliamentary

55
Notes to the Accounts
1. Statement of accounting policies
These financial statements have been
prepared to account for the receipt of
Parliamentary Supply through the Supply
Estimate (HC 229). They have been
prepared in accordance with the 2011-12
Government Financial Reporting Manual
(FReM) issued by Her Majesty’s Treasury
(HMT). The accounting policies contained
in the FReM apply International Financial
Reporting Standards (IFRS) as adapted or
interpreted for the public sector context.
Where the FReM permits a choice of
accounting policy, the accounting policy
which is judged to be most appropriate to
the particular circumstances of IPSA for
the purpose of giving a true and fair view
has been selected. The particular policies
adopted by IPSA are described below.
They have been applied consistently in
dealing with items that are considered
material to the Accounts.
In addition to the primary statements
prepared under IFRS, the FreM also
requires IPSA to prepare an additional
primary statement:
• The Statement of Parliamentary
Supply and supporting notes show
outturn against Estimate in terms of
the net resource requirement and the
net cash requirement.
1.1 Prior-year adjustments
The accounts have been prepared under
Clear Line of Sight (CLoS) and prior year
financial statements have been represented
to take account of the reforms introduced
as part of the CLoS initiative, as advised by
HMT. The aim of CLoS is to bring alignment
to the reporting of government spending in
resource accounts, departmental budgets
and the Supply Estimates.
1.2 Accounting convention
These accounts have been prepared under
the historical cost convention as modified
by the reporting of non-current assets at
fair value. There has been no revaluation
of property, plant and equipment and
intangibles which are considered short-life
assets.
1.3 Financing and Going Concern
IPSA is resourced by funds approved by the
Speaker’s Committee for IPSA through the
annual Appropriation Act. Resources are
drawn down each month to meet expenditure
requirements and are credited to the General
Fund. Any income that IPSA may use in
support of its activities is also approved by
the House of Commons in the Appropriation
Act. There is no reason to believe that
future funding will not be forthcoming. The
Accounts have therefore been prepared on a
going concern basis.
1.4 Administration and programme
expenditure
The Statement of Comprehensive Net
Expenditure is analysed between Subhead A,
MPs’ pay staffing and expenses, and Subhead
B, IPSA’s operational costs.
1.5 Pensions
IPSA is admitted to Section 1 of the Principal
Civil Service Pension Scheme (PCSPS)
and past and present staff are covered by
the provisions of the PCSPS schemes. The
pension arrangements for Civil Service staff
on secondment to IPSA are dealt with by
their seconding Department. The defined
benefit schemes are unfunded and are noncontributory,
except in respect of dependants’
benefits. IPSA recognises the expected
cost of these schemes on a systematic and
rational basis over the period during which
it benefits from employees’ services by
payment to the PCSPS of amounts calculated
on an accruing basis. Liability for future
benefits is a charge on the PCSPS. In respect
IPSA Annual Report 2011–2012