Page 142 - Pharmacy Appeals 1/4/04 to 31/3/05

118 Financial statements

Notes to the accounts

1. Accounting policies The following have not been adopted
early in these accounts:
The financial statements have been prepared in
accordance with the 2021/22 Government Financial • IFRS 16 Leases
Reporting Manual (FReM) issued by FIM Treasury. The effective date is for accounting periods
The accounting policies contained in the FReM apply beginning on or after 1 January 2019, but this has

International Financial Reporting Standards (IFRS) as been deferred in an update to the FReM due to
adapted or interpreted for the public sector context. Covid-19, with a new effective date for accounting
Where the FReM permits a choice of accounting periods beginning on or after 1 April 2022.

policy, the accounting policy that is judged most

From 1 April 2022, leases currently classified as
appropriate to the particular circumstances of NFIS
operating leases will be added into the statement
Resolution for giving a true and fair view has been
of financial position, recognising right-to-use lease
selected. The particular policies adopted by NFIS
assets and lease liabilities, and as a consequence
Resolution are described in the following text. They
recognising depreciation of the right-of-use
have been applied consistently in dealing with items
assets and interest on the lease liabilities.
that are considered material to the accounts.
This standard is not anticipated to have future material
The accounts are presented in pounds sterling and all
impact on the financial statements of NFIS Resolution.
values are rounded to the nearest thousand pounds. The
functional currency of NFIS Resolution is pounds sterling. • IFRS 17 Insurance Contracts
1.1. Accounting conventions The effective date is for accounting periods beginning
on or after 1 January 2021, but not adopted by the

These accounts are prepared under the historical cost

FReM with an expected adoption date from 1 April
convention, modified to account for the revaluation
2023. NFIS Resolution's assessment is that IFRS 17 will
of property, plant and equipment and intangible
not be applicable to the schemes it operates and so is
assets where material, at their value to the business
not anticipated to have an impact on the accounts.
by reference to current cost. This is in accordance with
directions issued by the Secretary of State for Health None of these new or amended standards and
and Social Care and approved by FIM Treasury. interpretations are anticipated to have future material
impact on the financial statements of NFIS Resolution.
1.2. Early adoption of standards,
amendments and interpretations 1.3. Income
NFIS Resolution has not adopted any IFRS, A source of funding for NFIS Resolution as a Special
amendments or interpretations early. Health Authority is a Parliamentary grant from DFISC
within an approved cash limit, which is reported within
Standards, amendments and interpretations
the Statement of Changes in Taxpayers' Equity. This
in issue but not yet effective or adopted
funds the ELS, Ex-RFIA, DFISC clinical and non-clinical
International Accounting Standard 8, accounting liabilities schemes, CNSC and CTIS (the Covid-19
policies, changes in accounting estimates and schemes created in 2020/21), the additional costs of
errors, requires disclosure in respect of new IFRS, the personal injury discount rate arising from the change
amendments and interpretations that are, or in the rate announced by the Lord Chancellor in March
will be, applicable after the accounting period. 2017, and some administration costs. In addition,
There are a number of IFRS, amendments and from 1 April 2019, NFIS Resolution received funding

interpretations issued by the International Accounting from NFIS England via DFISC for the administration of
Standards Board. These are effective for financial general practice indemnity arrangements, as directed
statements after this accounting period. by the Secretary of State. Parliamentary funding is
recognised in the financial period in which it is received.

The operating income disclosed in Note 3 to the
accounts is that which relates directly to the operating
activities of NFIS Resolution. NFIS Resolution currently
has the following income streams, the accounting
treatment of which have been assessed against the
requirements of IFRS 15 Revenue Recognition: