University Of Aberdeen Financial Statements
The way Universities report their end-of-year financial position has changed this year, which means their accounts will look significantly different in comparison to previous years. It is important to note that the underlying financial performance of many Universities has not changed, the only change is to the way they are reported.
This is as a result of a new accounting code introduced by the UK accounting standards body, the Financial Reporting Council. The code – ‘FRS102’ – changes the way some income, expenses, assets and liabilities appear on the financial statements. For example, for the first time the University must include in its balance sheet its share of the deficit in the Universities Superannuation Scheme (USS) as well as the deficit in our own pension scheme. Further reporting changes require movement in these deficits during the year to be reflected in our income and expenditure account. As pension valuations have been adversely impacted by global market conditions, this is having an impact upon not only the University of Aberdeen’s reported position, but also for our fellow Universities.
Despite the effect on the overall surplus or loss, the University’s finances remain healthy.
We would caution against comparisons between universities which are otherwise similar in size and type, because they may have different pension arrangements and have adopted different accounting policies.
Further information is available from the Finance Department.