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

1.19 Pensions
Defined contribution scheme
Payments are recognised as an expense when
employees have rendered service entitling them to
the contributions.
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. This 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.
Re-measurement 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 1.6.
1.20 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 Land, buildings
and bund held by the National sports centres
including the valuation and revaluation,
dilapidation, impairment and depreciation of Land,
buildings and bund, as well as the valuation of
artwork and antiques. They are made also in
relation to the pension scheme defined benefit
plan assets and liabilities which determine the
scheme’s deficit position.
1.21 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 Grant-in-Aid Consolidated Accounts for the year ended 31 March 2017 69