Notes to the Financial Statements
54
SCIENCE FOUNDATION IRELAND ANNUAL REPORT 2015
Notes to the Financial Statements
For the year ended 31 December 2015
1 Accounting Policies
The basis of accounting and significant accounting policies adopted by Science Foundation Ireland are set out below. They have been applied consistently throughout the year and for the preceding year.
( a) General Information Science Foundation Ireland was set up under the Industrial Development( Science Foundation Ireland) Act 2003, and by the Industrial Development( Science Foundation Ireland)( Amendment) Act, 2013, with its Head Office at Wilton Park House, Wilton Place, Dublin 2.
Science Foundation Ireland’ s primary objectives as set out under section 7 of the Industrial Development( Science Foundation Ireland) Act 2003, as amended by the Industrial Development( Science Foundation Ireland)( Amendment) Act, 2013, are as follows:
Science Foundation Ireland funds oriented basic and applied research in the areas of science, technology, engineering, and mathematics( STEM) which promotes and assists the development and competitiveness of industry, enterprise and employment in Ireland. The Foundation also promotes and supports the study of, education in and engagement with, STEM and promotes an awareness and understanding of the value of STEM to society and in particular to the growth of the economy.
Science Foundation Ireland is a Public Benefit Entity( PBE).
( b) Statement of Compliance The financial statements of Science Foundation Ireland for the year ended 31 December 2015 have been prepared in accordance with FRS 102, the financial reporting standard applicable in the UK and Ireland issued by the Financial Reporting Council( FRC), as promulgated by Chartered Accountants Ireland. These are Science Foundation Ireland’ s first set of financial statements prepared in accordance with FRS 102. The date of transition to FRS 102 is 1 January 2014. The prior year financial statements were re-stated for material adjustments on adoption of FRS 102 in the current year. The result of this adoption can be seen in Note 16.
( c) Basis of Preparation The financial statements have been prepared under the historical cost convention, except for certain assets and liabilities that are measured at fair values as explained in the accounting policies below. The financial statements are in the form approved by the Minister for Jobs, Enterprise and Innovation with the consent of the Minister for Public Expenditure and Reform under the under the Industrial Development( Science Foundation Ireland) Act 2003, and by the Industrial Development( Science Foundation Ireland)( Amendment) Act, 2013.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to Science Foundation Ireland’ s financial statements.
( d) Revenue Revenue is recognised on an accruals basis except in the case of Oireachtas Grants which are recognised on a cash receipts basis.
( e) Property, Plant and Equipment Property, Plant and Equipment are stated at cost less accumulated depreciation, adjusted for any provision for impairment. Depreciation is provided on all property, plant and equipment, at rates estimated to write off the cost less the estimated residual value of each asset on a straight line basis over their estimated useful lives, as follows:
( i) Computer Equipment & Computer Software
3 years( ii) Plant & Equipment 5 years
Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of an age and in the condition expected at the end of its useful life.
( f) Capital Account The Capital Account represents the unamortised funds utilised for the acquisition of Property, Plant and Equipment and is written down in line with the depreciation policy for these assets.
( g) Foreign Currency Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates ruling at the end of the financial year. Revenues and costs are translated at the exchange rates ruling at the dates of the underlying transactions. The resultant surpluses or deficits are dealt with in the Statement of Income and Expenditure and Retained Revenue Reserves.
( h) Employee Benefits
Short term benefits Short term benefits such as holiday pay are recognised as an expense in the year, and benefits that are accrued at year-end are included in the Payables figure in the Statement of Financial Position.
Retirement Benefits The Industrial Development( Forfás Dissolution) Act 2014( No 13 of 2014) which was passed into law on 16th July 2014 made provision for the dissolution of Forfás and provided for the establishment of Science Foundation Ireland as a separate legal employer. Under the legislation:
Science Foundation Ireland is responsible for the establishment of its own pension scheme.