The Christie Foundation Trust Annual Report and Accounts 2021-22

1.23 Accounting standards issued but not yet adopted

The DHSC GAM does not require the following IFRS Standards and Interpretations to be applied in 2021-22.

These Standards are still subject to HM Treasury FReM adoption.

(a) IFRS 14 Regulatory Deferral Accounts - applies to first time adopters of IFRS after 1 January 2016. Therefore, not applicable to DHSC group bodies. (b) IFRS 16 Leases - Standard is effective at 1 April 2022. (c) IFRS17 Insurance Contracts – Application required for accounting periods beginning on or after 1 January 2021 but not yet adopted by FReM; early adoption is not therefore permitted.

No accounting standards in issue have been adopted early.

Adoption of the standards will have the following impact to the Annual Accounts:-

Ø IFRS 17 – Insurance Contracts - The implementation of IFRS 17 will have no impact on the Trust.

Ø IFRS 16 – Leases - The implementation date for IFRS 16 in the NHS is the 1 st April 2022. Estimate calculations have been completed by the Trust. The main impact will be the creation of a Finance Lease relating to the National Contract for scanning which has been awarded to the Trust to provide scanning facilities across various sites in the Greater Manchester area.

The changes to the balance sheet on transition on the 1 st April 2022 will be:-

Values £m

Effect

Statement of Financial Position (SOFP)

Details

Increase

Non Current Assets - Finance Lease

Transition 1.4.2022

0.7

Increase

Non Current Assets - Finance Lease

Additions in 2022 - 23 12.1

Total Increase on the SOFP to Non Current Assets - Finance Leases 2022-23

12.8

Increase

Current Liabilities - Borrowings - Finance Lease Transitions 1.4.2022

(0.1)

Increase

Current Liabilities - Borrowings - Finance Lease Additions in 2022-23 (1.7)

Total Increase on the SOFP to Current Liabilities - Borrowings - Finance Lease

(1.8)

Non Current Liabilities - Borrowings - Finance Lease Non Current Liabilities - Borrowings - Finance Lease

Increase

Transitions 1.4.2022

(0.6)

Increase

Additions in 2022-23 (10.4)

Total Increase on the SOFP to Non Current Liabilities - Borrowings - Finance Lease

(11.0)

Overall impact on the Net Assets

0.0

The impact on the SOCI in the year is minimum with an estimate cost for 2022-23 of £49k, the categorisation of the charges will move from being identified as an Operating Lease Charge to being identified as Depreciation and Interest Payable costs.

The above values are for information only and estimated based on the information available when preparing the Annual Accounts for 2021-22. The 2022-23 Annual Accounts will include the actual values following the implementation on the 1 st April 2022.

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