In the Audit Commission's view, the international financial reporting standard, without adaptation, does not require a level of disclosure that might put a foundation trust at an economic disadvantage, writes Andy McKeon
It is true that the international standard on operating segments (IFRS 8) does require consideration of how operating results are reviewed by the chief operating decision maker when identifying reportable segments. However, the standard also says that operating segments can be aggregated if they have similar economic characteristics and types or class of customer.
The Department of Health and Monitor could, if they wish, interpret the standard for application in the NHS to require external reporting on the basis of service line reporting. However, the commission is unconvinced of the benefits of external financial reporting on this basis.
Andy McKeon, managing director, health, Audit Commission
No comments yet