UNIVERSITY OF EXETER S TAT E M E N T O F P R I N C I PA L A C C O U N T I N G P O L I C I E S
Income within the University’s subsidiary companies
As a result, the amount charged to the income and
represents the fair value of consideration receivable,
expenditure account represents the contributions payable to
excluding Value Added Tax, in the ordinary course of that
the scheme in respect of the accounting period.
Company’s business for goods and services provided. In respect of long-term contracts and contracts for on-going
Following FRS 17 the ERBS current service cost of providing
services, turnover represents the value of work done in the
retirement benefits to employees during the year is charged
year, including estimates of amounts not invoiced. Turnover in
to the operating surplus or deficit in the year. The full cost of
respect of long-term contracts for on-going services is
providing amendments to benefits in respect of past service is
recognised by reference to the stage of completion.
also charged to the operating surplus or deficit in the year. The expected return on the assets during the year based on
5. F O R E I G N C U R R E N C I E S
the market value of scheme assets at the start of the financial
Transactions denominated in foreign currencies are
year is included within other finance (charges)/income. This
recorded at the rate of exchange ruling at the date of the
also includes a charge representing the expected increase in
transactions. Monetary assets and liabilities denominated
the liabilities of the scheme during the year, arising from the liabilities of the scheme being one year closer to payment.
rates. Resulting exchange differences are dealt with in the
Differences between actual and expected returns on assets
determination of income and expenditure for the financial
during the year are recognised in the statement of recognised
year.
gains and losses in the year, together with differences from
6. P E N S I O N S C H E M E S A N D O T H E R P O S T-
reported on the balance sheet within the pension liability.
changes in assumptions. The net deficit on the ERBS is RETIREMENT BENEFITS Retirement benefits for employees of the University are
Further information on both the USS and ERBS pension
provided by defined benefit schemes, which are funded by
schemes and post-retirement benefits is disclosed in note 30.
contributions from the University and employees. 7. R E S E A R C H A N D D E V E LO P M E N T The two principal pension schemes for University staff are the Universities Superannuation Scheme (USS) and the
EXPENDITURE Expenditure on research and development is written off to
University of Exeter Retirement Benefits Scheme (ERBS).
the income and expenditure account in the year in which it is
The schemes are defined benefit schemes, which are
incurred.
externally funded and contracted out of the State Second Pension.
8. R E PA I R S A N D M A I N T E N A N C E The University has a five-year rolling long-term maintenance
Both funds are valued every three years by professionally
plan, which forms the basis of the on-going maintenance of
qualified independent actuaries. Pension costs are assessed in
the estate. Expenditure on long-term maintenance which
accordance with the advice of the actuaries, based on the
does not either enhance an asset beyond its original condition
latest actuarial valuations of the schemes.
or increase its expected economic life; and expenditure on all
The assets of the USS scheme are held in a separate trustee-
expenditure account as incurred.
routine corrective maintenance, is charged to the income and administered fund. Because of the mutual nature of the scheme, the University is unable to separately identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by FRS 17 ‘Retirement benefits’, accounts for the scheme as if it were a defined contribution scheme.
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F I N A N C I A L S TAT E M E N T S
in foreign currencies are translated into sterling at year-end