sport-england-2016-17-annual-report-and-accounts

Defined benefit scheme
A defined benefit scheme is a post-employment
benefit plan. Sport England’s net obligation in
respect of defined benefit plans is calculated by
estimating the amount of future benefits that
employees have earned in return for their service
in the current and prior periods. That benefit is
discounted to determine its present value.
The pension liabilities and assets of the defined
benefit scheme are recorded in accordance with
IAS 19 (2011) which measures the value of
pension assets and liabilities at the Statement of
financial position date, determines the benefits
accrued in the year, and the interest on the
scheme’s assets and liabilities. This valuation is
undertaken by an independent actuary.
The value of the benefits accrued during the year
(current service costs), past service costs, and
gains and losses on curtailments and settlements
are recognised in the Statement of
comprehensive net expenditure within staff costs.
The net interest expense on the net defined
liability is shown in the Statement of
comprehensive net expenditure.
The scheme’s administration expenses are shown
in the Statement of comprehensive net
expenditure within operating costs. Remeasurement
of the net defined benefit liability
which comprises actuarial gains and losses and
returns on plan assets (in excess of interest), is
recognised immediately in the Statement of
financial position and in Other comprehensive
income.
The resulting pension liability or asset is shown in
the Statement of financial position, and is
apportioned between Exchequer and Lottery
activities based on the combination of the historic
rate of 40% Exchequer and 60% Lottery and the
current year corporate average cost allocation as
determined by the methodology in note 1.7.
1.13 Use of estimates and judgement
The preparation of the financial statements
requires management to make judgements,
estimates and assumptions that affect the
application of the accounting policies and the
reported amounts of assets, liabilities, income and
expenditure. Actual results may differ from the
estimates used.
Estimates and assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates
are recognised in the period in which the
estimates are revised and in any future periods
affected.
Estimates are made in relation to the pension
scheme defined benefit plan assets and liabilities
which determine the scheme’s deficit position,
and for the profiling of the future periods when
grants payable fall due for payment.
1.14 Accounting standards that have been
issued but not adopted
There are no accounting standards that have
been issued that have not been applied to these
accounts.
The English Sports Council National Lottery Distribution Fund Accounts for the year ended 31 March 2017 103