There are a number of areas that Colleges should already be considering as part of the transition to the new standard: Government grants – performance vs accruals model choice; identify non-government grants. Fixed assets – accounting policy choice for carrying value. Employment benefits (holiday pay) – data capture and process for review of provision. Embedded leases – review of outsourcing arrangements for lease type arrangements. Service concessions – review for potential off balance sheet arrangements. Pensions – impact of revised net interest charge calculation. Investment Properties – volatility from movements being in SOCI. Other considerations: Project plan for conversion Gap analysis and impact modelling Selection of new accounting policies Timeline for conversion – split into manageable sections (approving new accounting policies; opening balance sheet; comparative SOCI; first full financial statements) Staff and governor training Communication with key stakeholders – banks (loan covenant compliance)
There are a number of areas that Colleges should already be considering as part of the transition to the new standard: Government grants – performance vs accruals model choice; identify non-government grants. Fixed assets – accounting policy choice for carrying value. Employment benefits (holiday pay) – data capture and process for review of provision. Embedded leases – review of outsourcing arrangements for lease type arrangements. Service concessions – review for potential off balance sheet arrangements. Pensions – impact of revised net interest charge calculation. Investment Properties – volatility from movements being in SOCI. Other considerations: Project plan for conversion Gap analysis and impact modelling Selection of new accounting policies Timeline for conversion – split into manageable sections (approving new accounting policies; opening balance sheet; comparative SOCI; first full financial statements) Staff and governor training Communication with key stakeholders – banks (loan covenant compliance)