3. Significant accounting policies
3.1 Expenditure
Expenditure on awards, claim settlements and associated costs are recognised on receipt of a validated approval or the validated settlement of such expenditure.
3.2 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.