News / HFMA survey highlights a small increase in segmental reports

26 April 2013

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By Steve Brown


NHS providers appear to be moving slowly towards reporting their annual financial accounts by different business segments, according to a survey carried out by the HFMA’s Foundation Trust Technical Issues Group.

Some 30% of the more than 80 providers taking part in the survey reported by two or more segments in their 2011/12 annual accounts compared with just 20%  in 2009/10. The approach is in response to international financial reporting standard IFRS8, which requires information to be disclosed in the accounts on the same basis as internal reports to the chief operating decision-maker.

While the majority of organisations continue to report in a single segment – healthcare – half of these had been challenged to justify their approach to their auditor. One trust said that its auditor had made it clear they expect to see a transitional plan leading to full segmental reporting, covering both income and expenditure, over the next few years.

Acute sector examples of segments included: urgent care; planned care; network care; and other. One mental health organisation reported different geographic segments for adult mental health services alongside separate segments for learning disabilities, child and adolescent, and drug and alcohol services.

One respondent suggested that the integration of acute and community activities and plans to view services along whole pathways might make existing segmental approaches inappropriate.

Nearly three quarters of the survey’s respondents believed segmental reporting should not apply to the NHS. Different reporting arrangements and structures across the health service meant that there would be little value in segmental reporting, it was argued. One respondent suggested that the difficulties involved in, for example, splitting balance sheet items, outweighed any benefits.