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NHS: Accountancy

Volume 495: debated on Tuesday 7 July 2009

To ask the Secretary of State for Health pursuant to the answer of 5 May 2009, Official Report, column 109W, on NHS: accountancy, what progress has been made in establishing the likely effects on the revenue of NHS organisations of the adoption of International Financial Reporting Standards from April 2009. (283906)

National health service organisations have prepared their 2009-10 financial plans on an International Financial Reporting Standards (IFRS) basis. The Department has established that the main effects on the revenue of NHS organisations arising from the adoption of IFRS relates to the accounting for private finance initiative and accounting for local improvement finance trust schemes and the accounting treatment of lease arrangements.

We are currently considering the Treasury Consolidated Budgeting Guidance published in June 2009, which deals with aspects of IFRS accounting, to determine how it should be applied to NHS organisations. We are also in discussion with the Audit Commission around the likely affect on the revenue of NHS organisations.