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Finance record 2019/20 - Table 2: Consolidated Statement of Financial Position

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Version 1.1 Produced 2021-01-26

Table 2 - Consolidated Statement of Financial Position

  1. Table 2 is the consolidated statement of financial position in the financial statements, with some additional detail.
  2. Data entered in this table must match with the audited financial statements.
  3. Head 1 (Non-Current assets)

  4. Sub head 1a should show intangible assets for e.g. intellectual property. Goodwill should be shown in sub heads 1b and 1c, not here.
  5. Sub head 1b should show goodwill. Goodwill is where the HEP has paid more than its fair value when acquiring another entity.
  6. Sub head 1c should include negative goodwill arising from the purchase of an entity. Negative goodwill arises when the HEP acquires another entity for less than its fair value.
  7. Sub head 1d is the net amount of goodwill and negative goodwill and is automatically populated. Sub head 1d is calculated and is the sum of sub heads 1b and 1c.
  8. Sub head 1e should show Tangible assets for e.g. land and buildings.
  9. Sub head 1f should show heritage assets wherever applicable.
  10. Sub head 1g should show investments that will be held for more than 12 months at balance sheet date. Examples of investments are property held as investments, stocks and shares etc. Investments in joint ventures or associates must be shown in subheads 1i and 1j respectively, not here.
  11. Sub head 1h should show investments made by a HEP in subsidiary undertakings.
  12. Sub head 1i should show long term investments in joint ventures.
  13. Sub head 1j should show long term investments in associates.
  14. Sub head 1k should include any other non-current asset not included in any other sub heads 1a to 1j excluding 1d.
  15. Head 2 (Current assets)

  16. Sub head 2a should show stocks held for sale or consumption.
  17. Sub head 2b should show trade and other receivables. This should include monies owed to the HEP for e.g. amounts owed by students, companies and organisations. This must not include any loans to directors which should be shown in sub head 2e.
  18. Sub head 2c should include any investments that will be held for less than 12 months. This includes any deposits or bonds with a term that is less than 12 months. For HEPS in Scotland, this head will be automatically populated from Head 1f in Table 2 Scotland.
  19. Sub head 2d should include any cash or cash equivalents held by the HEP. Examples of cash and cash equivalents are cash and cheques in hand, bank balances, money market accounts, short term investments. Bank overdraft should not be netted off with bank accounts, instead shown in sub head 3a. For HEPS in Scotland, this head will be automatically populated from Head 2f in Table 2 Scotland.
  20. Sub head 2e should show the balance of any loan/s made to directors and repayable within 12 months, where applicable.
  21. Sub head 2f should show the value of tuition fees accrued but not due. For e.g. where the course is being delivered across two financial years and payment is not due until the following financial year. If the payment is overdue this must be shown in sub head 2c.
  22. Head 2g Other (e.g. assets for resale) is included for anything else that is a one-off and is not covered by the other current asset sub heads, for example assets for resale within the next 12 months.
  23. Sub head 2h is total current assets and is automatically populated. Sub head 2h is calculated as the sum of sub heads 2a to 2g.
  24. Head 3 (Creditors-falling due within one year)

  25. The split for Head 3 differs slightly from Note 20 in the Model Financial Statements. The additional detail is required by funding councils.
  26. Sub head 3a should show overdraft balance at balance sheet date. Include here only that portion of the overdraft that is repayable within 12 months of balance date.
  27. Sub head 3b should include current portion of bank loans and other external borrowing that is repayable within 12 months of balance sheet date.
  28. Sub head 3c should include the current portion of long-term arrangement from finance leases and service concessions. Lease and service concession must meet the recognition test set out in FRS102, and where applicable IFRS. This sub head must include the current portion which is due within 12 months of balance sheet date.
  29. Sub head 3d should include deferred course fees where the provider has received course fees before balance sheet date and the actual delivery of the course is in future years.
  30. Sub head 3e should include tax and social security liability that is due within 12 months of balance sheet date. This sub head must include all tax liability arising from the HEP’s operations for e.g. PAYE and NI and VAT.
  31. Sub head 3f should show current portion of loans payable to funding councils due within 12 months of balance sheet date. It should include loans from funding councils which are part of SFC Financial Transactions loan programme. This sub head should not include grant claw back which should be shown in sub head 3h.
  32. Sub head 3g should include current portion of a loan from directors due within 12 months of balance sheet date, where applicable.
  33. Sub head 3h should show all current portion of amounts due to third parties that is not included in sub heads 3a to 3g and should include grant claw back.
  34. Sub head 3i is total creditors due within one year and is automatically calculated. Sub head 3i is the sum of sub heads 3a to 3h.
  35. Head 4 (Share of net current assets/(liabilities) in associates)

  36. This Head should show the provider’s share of net assets or liabilities in associates. Net liability of the associate should be shown as a negative value.
  37. Head 5 (Net current assets/(liabilities))

  38. Head 5 the total of net current assets automatically calculated. Head 5 is calculated as sub head 2h minus 3i plus Head 4.
  39. Head 6 (Total assets less current liabilities)

  40. Head 6 is the total assets less current liabilities and is automatically calculated. Head 6 is the sum of Head 5 plus sub head 1k.
  41. Head 7 (Creditors-falling due more than one year)

  42. The split for Head 7 differs slightly from Note 20 in the Model Financial Statements. The additional detail is required by funding councils.
  43. Sub head 7a should include bank loans and other external borrowing that is repayable after 12 months of balance sheet date.
  44. Sub head 7b should include long-term arrangement from finance leases and service concessions. Lease and service concession must meet the recognition test set out in FRS102, and where applicable IFRS. This sub head must include amounts repayable after 12 months of balance sheet date.
  45. Sub head 7c should show loans payable to funding councils due after 12 months of balance sheet date. It should include loans from funding councils which are part of SFC Financial Transactions loan programme. This sub head should not include grant claw back which should be shown in sub head 7e.
  46. Sub head 7d should show loans from directors due after 12 months of balance sheet date.
  47. Sub head 7e should show amounts due to third parties that is not included in sub heads 7a to 7d and should include grant claw back.
  48. Sub head 7f is the total of creditors due after one year and is automatically calculated. Head 7 is calculated as the sum of 7a to 7e.
  49. Head 8 (Provisions)

  50. Sub head 8a should include the total value of future liabilities relating to the HEP’s defined pension scheme. Include here the entire value of the provision irrespective of when they fall due.
  51. Sub head 8b should include the total cost of any other provisions that is recognised irrespective of when they fall due.
  52. Sub head 8c is total provisions and is automatically populated. Sub head 8c is the sum of 8a and 8b.
  53. Head 9 (Total net assets/liabilities)

  54. Head 9 is the total net assets or liabilities and is automatically populated. Head 9 is calculated as the sum of Head 6 minus sub head 7f minus sub head 8c.
  55. Head 10 (Restricted reserves)

  56. Sub head 10a should show HEP’s income and expenditure reserves that relates to endowments.
  57. Sub head 10b should show HEP’s income and expenditure reserves that relates to restricted reserves.
  58. Head 11 (Unrestricted reserves)

  59. Sub head 11a should show the accumulation of surpluses and deficits of the HEP over the years.
  60. Sub head 11b should show any changes to the HEP’s revaluation reserve.
  61. Head 12 (Total of restricted and unrestricted reserves)

  62. Head 12 is the total of reserves excluding the HEP’s non-controlling interest and is automatically calculated. Head 12 the sum of sub heads 10a to Head 10b and sub heads 11a to 11b.
  63. Head 13 (Non-controlling interest)

  64. Sub head 13 should show the accumulation of surpluses and deficits of the HEP’s non-controlling interests.
  65. Head 14 (Total Reserves)

  66. Head 14 is the total reserves of the HEP and is automatically calculated. Head 14 is the sum of Heads 12 and 13.
  67. Head 15 (Share Capital including share premium)

  68. Head 15 should show share capital including share premium, where applicable. Share premium is the additional amounts shareholders have paid over the nominal value of shares.
  69. Table 2 Scotland - Investments and cash 

  70. This table is for providers in Scotland only. This split for investments and cash is required by the Scottish Funding Council.
  71. For HEPS in Scotland, Table 2 Scotland will automatically populate Head 2c (Investments) and Head 2d (Cash and cash equivalents) in Table 2 UK.
  72. Head 1 (Investments)

  73. Sub-head 1a should show investment funds, from disposal of fixed assets, held for future fixed asset acquisitions and should include investment funds arising from sale proceeds which are being held pending re-investment in fixed assets.
  74. Sub-head 1b should show investment funds held for third parties.
  75. Sub-head 1c should show student support funds and should show investment funds which comprise funds held for student support including bursary, discretionary and childcare funds.
  76. Sub-head 1d should show investment funds which have a restriction relating to the use of funds.
  77. Sub-head 1e should show unrestricted funds and should include investment funds which have no restrictions on use and are not held for a third party.
  78. Sub head 1f is total investments and is automatically populated. Sub head 1f is calculated as the sum of sub heads 1a to 1e.
  79. Head 2 (Cash and cash equivalents)

  80. Sub-head 2a should show funds, from disposal of fixed assets, held for future fixed asset acquisitions and should include cash held from sale proceeds which are being held pending re-investment in fixed assets.
  81. Sub-head 2b should show funds held for third parties and should include includes cash held on behalf of third parties.
  82. Sub-head 2c should show student support funds and should include cash which is being held for student support including bursary, discretionary and childcare funds.
  83. Sub-head 2d should show other restricted funds and should include cash which has a restriction relating to the use of funds.
  84. Sub-head 2e should show unrestricted cash which has no restrictions on use and is not held for a third party.
  85. Sub head 2f is the total of cash and cash equivalents and is automatically populated. Sub head 2f is calculated as the sum of sub head 2a to sub head 2e.
  86. Head 3 (Creditors- amounts falling due within one year)

  87. Sub head 3a should show current portion of any borrowing taken out by the HEI under UK Government COVID support schemes such as the Coronavirus Business Interruption Loan Scheme (CBILS) or COVID Corporate Financing Facility (CCFF). Current portion is amounts payable within 12 months of balance sheet date.
  88. Head 4 (Creditors- amounts falling due after one year)

  89. Sub head 4a should show long term borrowing taken out by the HEI under UK Government COVID support schemes such as the Coronavirus Business Interruption Loan Scheme (CBILS) or COVID Corporate Financing Facility (CCFF). Long term portion is amounts payable due after 12 months of balance sheet date.

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