2. Significant accounting policies
State Claims Agency
2.1 Basis of accounting
The financial statements of the SCA relate to the management of claims on behalf of Delegated State Authorities who are liable in respect of claims and from whom the SCA recovers the amounts of any awards and associated costs. The financial statements present the claim activities and report on the transactions processed via the SCA in the year and therefore no amount is included within the liabilities for the value of outstanding claims.
Transactions are recognised using the cash basis of accounting as adjusted for accruals for contracted third party service provider costs and the related cost recovery from the relevant Delegated State Authority.
The reporting currency is the euro which is denoted by the symbol €.
Expenditure on awards, claim settlements and associated costs are recognised on receipt of a validated approval or the validated settlement of such expenditure.
2.3 Income Receivable
The SCA recovers the amounts of any awards, claim settlements and associated costs from Delegated State Authorities who are liable in respect of claims. Amounts are accounted for on an accruals basis. Income is treated as received and receivable from Delegated State Authorities in line with the recognition of the related expenditure.