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Amortisation assets acquired or disposed of through finance leases
are recognised and measured in accordance with the
Intangible assets are amortised over their expected
accounting policy for leases described below.
useful economic lives in a manner consistent with the
consumption of economic or service delivery benefits.
All other financial assets and financial liabilities are
1.8.3 Useful Economic Lives of recognised when the trust becomes a party to the
contractual provisions of the instrument.
Intangible Assets
De-recognition
Useful economic lives reflect the total life of an asset
and not the remaining life of an asset. Computer
All financial assets are de-recognised when the rights
software have a minimum life of 0 years and maximum to receive cash flows from the assets have expired or
life of 8 years
the trust has transferred substantially all of the risks and
1.9 Inventories rewards of ownership.
Inventories are valued at the lower of cost and net Financial liabilities are de-recognised when the
realisable value. The cost of inventories is measured obligation is discharged, cancelled or expires.
using the first-in first-out formula.
1.10 Cash and Cash Equivalents Classification and Measurement
Cash is cash in hand and deposits with commercial Financial assets are categorised as “fair value through
bank and Government Banking Service. the income and expenditure”, “available for sale”
financial assets and “loans and receivables”. The trust
1.11 Carbon Reduction Commitment only has loans and receivables.
Scheme (CRC) Financial liabilities are classified as “fair value through
income and expenditure” or as “other financial
The CRC scheme is a mandatory cap and trade
liabilities”. The trust only has other financial liabilities.
scheme for non-transport CO2 emissions. The trust
is registered with the CRC scheme, and is therefore
required to surrender to the Government an allowance Financial Assets and Financial Liabilities at “Fair
for every tonne of CO2 it emits during the financial year. Value Through Income and Expenditure”
A liability and related expense is recognised in respect
of this obligation as CO2 emissions are made. Financial assets and financial liabilities at “fair value
through income and expenditure” are financial assets
The carrying amount of the liability at the financial or financial liabilities held for trading. A financial asset or
year end will therefore reflect the CO2 emissions that financial liability is classified in this category if acquired
have been made during that financial year, less the principally for the purpose of selling in the short-term.
allowances (if any) surrendered voluntarily during the
financial year in respect of that financial year. These financial assets and financial liabilities are
recognised initially at fair value, with transaction costs
The liability will be measured at the amount expected expensed in the income and expenditure account.
to be incurred in settling the obligation. This will be the Subsequent movements in the fair value are recognised
cost of the number of allowances required to settle the as gains or losses in the Statement of Comprehensive
obligation. Income.
Loans and Receivables
1.12 Financial Assets and Financial
Liabilities Loans and receivables are non-derivative financial
assets with fixed or determinable payments which are
Recognition not quoted in an active market.
Financial assets and financial liabilities which arise from The trust’s loans and receivables comprise: cash and
contracts for the purchase or sale of non-financial items cash equivalents, NHS receivables, accrued income
(such as goods or services), which are entered into in and other receivables.
accordance with the trust’s normal purchase, sale or
usage requirements, are recognised when, and to the Loans and receivables are recognised initially at fair
extent which, performance occurs, i.e., when receipt or value, net of transactions costs, and are measured
delivery of the goods or services is made. subsequently at amortised cost, using the effective
interest method. The effective interest rate is the rate
Financial assets or financial liabilities in respect of that discounts exactly estimated future cash receipts
Alder Hey Children’s NHS Foundation Trust 167 Annual Report & Accounts 2017/18