The Department for International Development (DFID’s) Accounts are prepared in accordance with the 2011 to 2012 Government Financial Reporting Manual (FReM), issued by HM Treasury. The accounting policies contained in the FReM apply International Financial Reporting Standards as adapted or interpreted for the public sector context. DFID’s accounts are similar in many respects to the annual accounts prepared by private sector businesses. They contain the primary financial statements recording the full costs of activities, DFID’s assets and liabilities as well as providing information on how resources have been used to meet objectives.
The format is tailored to central government accounting including, for example, financial comparisons against the department’s resource-based estimates. Those not familiar with the format of the accounts might like to focus on the operating and financial review within the Management Commentary to the accounts, which summarises the important areas of performance.
The accounts are audited each year by the National Audit Office (NAO) before they are presented to Parliament.