The North / South Language Body Annual Report & Accounts 2009

Foras na GaeilgeNotes to accompany the accounts for the year ending 31 December 20091. ACCOUNTING POLICIESThe principal accounting policies, which have been adopted in the preparation of the accounts, are as follows:1.1 Accounting ConventionThe accounts have been prepared in accordance with the historic cost convention. Without limiting theinformation given, the accounts are prepared on an accruals basis and comply with the accounting anddisclosure requirements of the Companies (Northern Ireland) Order 1986, the Irish Companies Acts 1963 to2009, the accounting standards issued or adopted by the Accounting Standards Board and accounting anddisclosure requirements issued by the Department of Finance and Personnel and the Department of Finance, inso far as those requirements are appropriate.1.2 Fixed Assetsa) Tangible Fixed Assets are entered at their cost to Foras na Gaeilge.b) Depreciation is calculated to write off the cost or re-evaluated amounts of fixed assets within their useful life.The following are the methods and rates used each year:Motor VehiclesFixtures and FittingsComputer EquipmentOffice Equipment25% straight line10% straight line33.33% straight line15% - 20% straight line1.3 Pension CostsForas na Gaeilge has adopted FRS17 in relation to accounting for pensions in 2009.The North/South Pension Scheme was established by the North/South Implementation Bodies and TourismIreland Limited with effect from 29 April 2005. It is a defined benefit pension scheme which is funded annuallyon a pay as you go basis. The scheme is administered by an external administrator. Funding from the IrishGovernment is provided by the Department of Arts, Heritage and the Gaeltactht and funding from the NorthernIreland Executive is provided by the Department of Culture, Arts and Leisure to Foras na Gaeilge, which thenfunds the administrator.Financial Reporting Standard (FRS) 17 covers retirement benefits. The liability at 31 December 2009 has beenincluded in the financial statements and a disclosure note has been included (Note 15.4.2) detailing the actuarialreview calculations, which were carried out by PriceWaterhouseCoopers. This includes the results of thecalculations of the pension liabilities and costs of employees (and ex-employees) of Foras na Gaeilge for thepurposes of the accounts for the year ended 31 December 2009 and comparative figures for 2008.Pension costs reflect pension benefits earned by employees in the period. An amount corresponding to thepension charge is recognised as income to the extent that it is recoverable, and offset by grants received in theyear to discharge pension payments. Pension liabilities represent the present value of future pension paymentsearned by staff to date.Actuarial gains or losses arising from changes to actuarial assumptions and from experience surpluses anddeficits are reflected in the Statement of Recognised Gains and Losses and a corresponding adjustment isrecognised in the amount recoverable from the Northern Ireland Executive and the Irish Government.FRS 17 was applied in conjunction with the payment of ASLCs during 2009 and the comparative year 2008,and hence the Body has accounted for the ASLC payment for the period January-March 2009, in addition to theFRS17 pension cost, in accordance with guidance agreed by the Dept of Finance and Personnel in N. Ireland,Dept of Finance in Ireland, and the Comptrollers and Auditors General in both jurisdictions.17