Liability Accounts

FRS 29 applies only to entities applying FRS 26 – the scope of that standard covers listed entities and entities that use the fair value accounting rules of the Companies Act 1985 to produce their financial statements. The ASB has issued proposals for extending the scope of FRS 26 to all entities but has not yet reached a conclusion on implementing this proposal. FRS 28 set out the requirements for the disclosure of corresponding amounts1 for items shown in an entity’s primary financial statements and the notes to the financial statements. Other entities were permitted to apply the FRS, as long as they applied certain other FRSs at the same time. For accounting periods beginning on or after 1 January 2006, unlisted entities using fair value measures were also be required to comply with the FRS. These include disclosure of the date when the financial statements were authorised for issue and the disclosure of information received about conditions that existed at the balance sheet date.

This report summarised the needs of different users of financial statements of life assurance entities, and the improvements introduced by FRS 27 to meet those needs. It also analysed key areas where further improvements could be made, including the measurement of liabilities, profit recognition, the distinction between equity and liabilities, and the role of embedded value methods. The report concludes that these complex issues, that could not be addressed in the timescale available for the development of FRS 27, are best considered in the wider context of international insurance accounting that is being addressed by the IASB’s project. The Board will continue to monitor and give input to this wider IASB project. FRS 6 was effective in respect of business combinations first accounted for in financial statements relating to accounting periods ending on or after 23 December 1994.

FRS 25 (IAS Financial Instruments: Presentation

Restructuring costs, once plans have been finalised and communicated as such to those affected. We draw down funding from the Scottish Consolidated Fund to support the spending plans laid out in the draft budget. The primary receipts to the Scottish Consolidated Fund are from the block grant; Scottish Income Tax receipts collected by HMRC on our behalf; devolved taxes; and borrowing. We set up the Scottish Consolidated Fund in 1999 and received its statutory powers under the Scotland Act 1998. The Scottish Consolidated Fund receives sums which have been voted by the UK Parliament for the purpose of «grant payable to the Fund» from the Office of the Secretary of State for Scotland.

The balance sheet items affected and the basis of valuation adopted in determining the amounts of the assets in question in the case of each such item must be disclosed in a note to the accounts. The provision of a pension is part of the remuneration package of many employees. Pension costs form a significant proportion of total payroll costs and they give rise to special problems of estimation and of allocation between accounting periods. Accordingly, it is important that standard accounting practice exists concerning the recognition of such costs in the employers’ financial statements. The FRS permits a reporting entity not to show corresponding amounts for certain items in the notes to the financial statements that were previously exempted under company law. It also does not require corresponding amounts for the earliest period presented where financials statements for two or more consecutive periods are presented together.

What are contingent liabilities?

In the case of current assets distribution costs may not be included in production costs. In determining the aggregate amount of any item, the amount of each individual asset or liability that falls to be real estate bookkeeping taken into account must be determined separately. In determining the amount to be shown for this item any amounts shown under “prepayments and accrued income” must be taken into account wherever shown.

The treatment for taxation purposes of amounts credited or debited to the fair value reserve must be disclosed in a note to the accounts. — The fair value of a financial instrument is its value determined in accordance with this paragraph. If the fair value of a financial instrument cannot be determined reliably in accordance with paragraph 37, sub-paragraph does not apply to that financial instrument. The treatment for taxation purposes of amounts credited or debited to the revaluation reserve must be disclosed in a note to the accounts. The aggregate amount of the cumulative provisions for depreciation or diminution in value which would be permitted or required in determining those amounts according to those rules.