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APPENDIX E
NOTES
to the accounts for the year ended 31 March 2017
1. Accounting Policies
a) Basis of accounting
The Isle of Man Financial Services Authority (“the Authority”) is constituted under the
Transfer of Functions (Isle of Man Financial Services Authority) Order 2015 as a Statutory
Board of Tynwald. The income and expenditure account is part of the general revenue
account of the Isle of Man Government. Accordingly, any deficit or surplus for the year
forms part of general revenue and any deficit or surplus is not retained by the Authority.
The Isle of Man Government is committed to funding any shortfall of the Authority on an
on-going basis, in accordance with section 52(1) of the Financial Services Act 2008.
The accounts are prepared in accordance with the Accounts and Audit Regulations 2013,
made under the Audit Act 2006. They are also prepared in accordance with UK Accounting
Standards including FRS 102 the Financial Reporting Standard applicable in the UK and
Republic of Ireland, as applicable to the Authority, and in accordance with the Isle of Man
Statement of Recommended Practice 2007 on accounting for entities subject to the Audit
Act 2006 (“the SORP”), to the extent applicable to the Authority. The Authority does not
hold any assets or liabilities on its own account. Any assets or liabilities arising from the
Authority’s activities are held by the Isle of Man Government.
b) Income
Income is recognised when fees are invoiced. Income that remains due and is deemed
irrecoverable is written off at the end of the period. No debtors are recognised by the
Authority, consistent with the policy that no assets or liabilities are recognised by the
Authority (note 1(a)).
c) Expenditure
Expenditure is accounted for on an accruals basis. Amounts properly incurred during the
year but not yet paid are included within expenditure.
The Authority has elected to include the cost of fixed assets within expenditure, rather
than capitalising. The Authority, as a Statutory Board, does not hold assets in its own
name. Any assets purchased are of immaterial value with limited useful lives and
therefore a policy of non-capitalisation is adopted.
d) Pensions
The majority of the Authority’s employees are members of the Isle of Man Government
Unified Pension Scheme which is administered by the Public Sector Pensions Authority.
Employees contribute to the scheme with employer’s contributions, from 1 April 2016,
being funded from the Authority’s salaries budget (see note 4 below).
e) Balance sheet
The Authority is a Statutory Board of the Isle of Man Government and does not hold any
assets or liabilities in its own name. Accordingly, an independent Balance Sheet does not
form part of the Accounts.
56 • Isle of Man Financial Services Authority Annual Report 2016/17