HFMA response / Response to HM Treasury’s exposure draft on non-investment asset valuation for financial reporting purposes

19 February 2024 Debbie Paterson
1 CPD hour

The HFMA is broadly supportive of HM Treasury's aim of reducing the cost of valuing public sector property, plant and equipment. However, we have raised the following concerns:

  • it is likely that these proposals will result in an increase in asset values - the impact of this on the financial position of NHS bodies as well as capital allocations needs to be modelled so it can be appropriately managed
  • the impact of these proposals on the application of IAS 36 Impairment of assets needs to be considered further, we are concerned that audit focus will change rather than be reduced
  • the application of these proposals to NHS bodies will need further guidance from the DHSC and NHS England.
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