22. Transition to FRS 102
NTMA Administration Account
The Agency has transitioned to FRS 102 and restated comparative amounts for the year ended 31 December 2015. The impact is as follows:
Balance sheet as at 1 January and 31 December 2014
| Adjustment | 1 Jan 2014 €'000 |
Effect of Transition €'000 |
Reported under FRS 102 €'000 |
31 Dec 2014 €'000 |
Effect of Transition €'000 |
Reported under FRS 102 €'000 |
|
|---|---|---|---|---|---|---|---|
| Non current assets | |||||||
| Property, equipment and vehicles | 2 | 3,202 | 204 | 3,406 | 2,978 | 183 | 3,161 |
| Receivables | 9,130 | 882 | 10,012 | 5,636 | 1,091 | 6,727 | |
| Cash at bank | 3,180 | - | 3,180 | 1,009 | - | 1,009 | |
| Current assets | 12,310 | 882 | 13,192 | 6,645 | 1,091 | 7,736 | |
| Creditors | 1,2 | (12,310) | (1,554) | (13,864) | (6,645) | (1,763) | (8,408) |
| Net current assets | - | (672) | (672) | - | (672) | (672) | |
| Net assets before retirement benefits | 3,202 | (468) | 2,734 | 2,978 | (489) | 2,489 | |
| Deferred retirement benefit funding | 3,549 | - | 3,549 | 25,537 | - | 25,537 | |
| Retirement benefit obligation | (3,549) | - | (3,549) | (25,537) | - | (25,537) | |
| Net assets | 3,202 | (468) | 2,734 | 2,978 | (489) | 2,489 | |
| Representing: | |||||||
| Capital account | 3,202 | (468) | 2,734 | 2,978 | (489) | 2,489 |
Statement of Income and Expenditure Account for 2014
| Adjustment | 2014 €'000 |
Effect of Transition €'000 |
Reported under FRS 102 €'000 |
|
|---|---|---|---|---|
| Income | ||||
| Operating income | 55,501 | - | 55,501 | |
| Central fund income | 1 | 43,262 | 1,177 | 44,439 |
| Net deferred retirement benefit funding | 3 | 720 | 397 | 1,117 |
| Transfer from capital account | 2 | 224 | 21 | 245 |
| 99,707 | 1,595 | 101,302 | ||
| Expenditure | ||||
| Agency cost | 1,2,3 | (99,707) | (1,595) | (101,302) |
| Net Income / (Expenditure) | - | - | - |
Statement of Total Recognised Gains and Losses for 2014
| Adjustment | 2014 €'000 |
Effect of Transition €'000 |
Reported under FRS 102 €'000 |
|
|---|---|---|---|---|
| Actuarial Loss recognised on Retirement benefit obligations | 3 | (21,268) | 397 | (20,871) |
| Movement in Deferred Retirement benefit Funding (note 9.2) | 3 | 21,268 | (397) | 20,871 |
| Total Recognised (Loss) / Gain | - | - | - |
Adjustment
1. Annual leave accrual
The Agency did not previously accrue for annual leave pay earned by employees but not availed of at the reporting date. Under FRS 102, the Agency is required to accrue for annual leave entitlements earned but not taken at the reporting date. The impact of this change is to include annual leave pay accrued of €0.9m and €1.2m for the Agency at 1 January 2014 and 31 December 2014 respectively in Creditors and Agency costs.
Employee remuneration is recoverable from the Central Fund. The annual leave accrual of €0.9m and €1.2m for the Agency at 1 January 2014 and 31 December 2014 respectively is included in creditors and Central fund income as amounts receivable.
2. Provisions
The Agency had previously not provided for costs associated with premises. Under FRS 102, the Agency is required to provide for all probable costs that can be estimated reliably. The impact of this change is to include premises costs of €0.7m at 1 January 2014 and 31 December 2014 respectively within Property, equipment and vehicles. The annual depreciable amount recognised is €21k and is included within the transfer from Capital Account at 1 January 2014 and 31 December 2014. The accumulated depreciation amount included within Property, equipment and vehicles is €0.5m and €0.5m at 1 January 2014 and 31 December 2014 respectively.
The provision is included within Creditors of €0.7m at 1 January 2014 and 31 December 2014 respectively.
Capital expenditure is recoverable from the Central Fund and amortised over the useful life of the asset. The additional depreciation of €21k for the Agency at 1 January 2014 and 31 December 2014 respectively is included within Agency costs. The additional depreciation of €21k at 1 January 2014 and 31 December 2014 respectively is amortised and included in the Transfer from capital account.
3. Actuarial valuation
The Agency previously accounted for the defined benefit scheme under FRS 17. As a result of the transition to FRS 102 the change on the expected return on assets to net interest cost has resulted in a decrease of €0.4m (from €3.6m to €3.2m) at 31 December 2014. The movement of €0.4m of actuarial loss is included within Agency costs at 31 December 2014. The movement in deferred funding of €0.4m is included within Net deferred retirement benefit funding at 31 December 2014. The total remeasurements included in Other comprehensive income has decreased by €0.4m (from €21.3m to €20.9m) at 31 December 2014.