The statement of accounts for the year ended 31 March 2011 has been prepared and published in accordance with the Accounts and Audit Regulations 2003 and the Code of Practice issued by the Chartered Institute of Public Finance and Accountancy in 2010. The new code is based on a consolidation of accounting standards including International Financial Reporting Standards, International Public Sector Accounting Standards, and Generally Accepted Accounting Practice (UK).
IAS 26 is the accounting standard that sets out the requirements for Accounting and Reporting in respect of Retirement Benefit Plans following the move to financial reporting of the pension fund accounts under International Financial Reporting Standards. The CIPFA Code of Practice has indicated that pension fund accounts for the year ending 31 March 2010 should disclose the actuarial present value of promised retirement benefits, as set out in IAS 26 and that the actuarial present value of promised retirement benefits should be calculated on an International Accounting Standard 19 (IAS 19), Employee Benefits basis. This is a change from previous practice where pension fund accounts only showed the value of assets.
IAS 26 permits three options on how the actuarial present value of promised retirement benefits are disclosed, they are:
Westminster City Council has opted to disclose this information in an accompanying report to the accounts as option C.