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<p>The Department and entities within its accounting boundary report on the basis
of European Union Adopted International Financial Reporting Standards as interpreted
and adapted for the public sector by HM Treasury’s Financial Reporting Manual.</p><p>
</p><p>Debt is not a specific classification of liability that is reported by entities
including National Health Service foundation trusts.</p><p> </p><p>To provide a total
liability amount for NHS foundation trusts, either current and payable within 12 months
or non-current and due to be settled beyond 12 months from the end of the financial
year, would therefore include items which the Department would not expect to be viewed
as debt.</p><p> </p><p>For this reason, the Department has interpreted the term ‘debt’
to refer to outstanding balances on loans both with the Department and with Other
Entities. The attached table identifies the total level of loans outstanding for NHS
foundation trusts as at 31 March 2018, on a current and non-current basis.</p><p>
</p><p>Loans held with the Department are eliminated on consolidation to arrive at
the Group’s Consolidated Statement of Financial Position. As part of presenting a
consolidated set of accounts, all intra group activity (including income, expenditure,
assets and liabilities generated by intra group trading) is eliminated, so as to not
overstate the Group position. For individual NHS foundation trusts these loans with
the Department represent a debt, but this is not the case in regards to the Group
position presented in the Department’s Annual Report and Accounts as balances held
and transactions related to the loans held are eliminated.</p>
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