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Annual Report and Accounts

Financial Statements - Accounting Policies (continued)

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For the Year Ended 31 December 2007

(f) Repayable Financial Support to Industry

The amount recoverable in respect of repayable financial support to industry is reflected in the Balance Sheet as Financial Incentive Assets and the related funding is included in the State Advances Account. A specific provision is maintained in the Income and Expenditure Account to provide for possible shortfalls and doubtful debts.

The repayable financial supports to industry are as follows:

Targeted Marketing Consultancy (TMC) Programme

A proportion of financial incentives support under the TMC Programme is recoverable based on the sales performance of companies assisted. The amounts advanced are recovered over a 24 to 60 month period by way of a levy based on the sales achieved by the TMC expenditure.

Research & Development and Capital Financial Support

Certain Research & Development and Capital Financial Support agreements have a repayable clause allowing for part of the financial support to be recovered.

(g) State Advances Account

The State Advances Account represents monies advanced to client companies by way of repayable financial support, and which is still outstanding, less a provision for shortfalls and doubtful debts.

(h) Tangible Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is calculated in order to write off the cost of tangible fixed assets on a straight line basis over their estimated useful lives as follows:

(i) Motor Vehicles 20%
(ii) New Buildings 4%
(iii) Refurbishment to Existing Buildings 20%
(iv) Leasehold Improvements 20%
(v) Fixtures & Fittings 25%
(vi) Computers 33%
(vii) Technical Equipment 20%
(viii) Land 0%
(ix) Artwork 0%

Expenditure on assets with an individual cost below the capitalisation threshold (€2,500) are expended in the Income and Expenditure Account in the year of purchase.

(i) Provision for Doubtful Debts

Trade Debtors

Doubtful debts are provided for by way of a specific provision.


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