Annex A

Annex A

Dear Mr Leaton,

Freedom of Information Request dated 20^th January 2010

“Thank you for your response. Under the IPSAS accounting standards, you do have to account for these liabilities. My understanding is that the UK is adopting them for the 2009/2010 year. Can you forward me details regarding this? Is the DWP going to produce its accounts according to the international standards agreed by the UK government? If not I would like to request all papers where the adoption/avoidance of accounting standards. You may treat this as a new FOI request if it suits you.”

The Department for Work and Pensions will be producing its accounts for the financial year 2009/10 in accordance with the guidance laid down by HM Treasury in their “Government Financial Reporting Manual” (FReM). HM Treasury introduced the use of International Financial Reporting Standards (IFRS) with effect from 1 April 2009. Therefore, the accounts being produced for the financial year ended 31 March 2010 will be on an IFRS basis.

If necessary, the Treasury interprets and adapts IFRS for public sector specific accounting reasons. IPSAS are based on IFRS and are similarly interpreted and adapted. IPSAS feature after IFRS in the hierarchy of standards considered in interpreting and adapting IFRS for application within central government. IFRS has been used by significant public interest private sector entities since 2005 throughout the EU and accounting treatments should reflect the share of economic resources used by the private and public sectors.

All Government departments are required to produce their accounts in accordance with the FReM. This document is freely accessible to anyone who wishes to view it and the link is given herewith for your assistance: http://www.hm-treasury.gov.uk/frem_index.htm

If you have any queries about this letter please contact me quoting the reference number above.

Yours sincerely,

DWP Central FoI Team

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Your right to complain under the Freedom of Information Act

If you are not happy with this response you may request an internal review by e-mailing [DWP request email] or by writing to DWP, Central FoI Team, 5^th Floor The Adelphi, 1-11, John Adam Street, London WC2N 6HT. Any review request should be submitted within two months of the date of this letter.

If you are not content with the outcome of the internal review you may apply directly to the Information Commissioner's Office for a decision. Generally the Commissioner cannot make a decision unless you have exhausted our own complaints procedure. The Information Commissioner can be contacted at: The Information Commissioner's Office, Wycliffe House, Water Lane, Wilmslow Cheshire SK9 5AF www.ico.gov.uk

DWP Central Freedom of Information Team

e-mail: [DWP request email]

Our Ref: VTR153

5 February 2010