Ombud Council AR 2026

PART F: FINANCIAL INFORMATION

The annual depreciation rates are based on the following average useful lives: Item Depreciation method

Average useful life

Furniture and fittings Computer equipment

Straight-line Straight-line Straight-line

5 – 15 years 3 – 5 years

Office equipment 5 – 15 years The useful life and depreciation method of each asset are reviewed at the end of each reporting date when there’s an indicator. If the expectations differ from previous estimate, the change is accounted for as a change in accounting estimate. Items of property, plant and equipment are also tested for impairment annually when there’s an indicator that the asset or assets should be impaired. The depreciation charge for each period is recognised in the statement of financial performance. Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset. The gains or losses arising from the derecognition of an item of property, plant and equipment are included in surplus or deficit when the item is derecognised. Gains or losses arising from the derecognition of an item of property, plant and equipment are determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. Maintenance and repairs, which neither materially add to the value of assets nor prolong their useful lives, are charged against the statement of financial performance. The entity separately discloses expenditure to repair and maintain property, plant and equipment in the notes to the financial statements (see note 6). 1.4 Provisions and contingencies Provisions are recognised when: • the entity has a present obligation as a result of a past event; • it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; and • a reliable estimate can be made of the obligation. The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date. Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation. The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision. Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation.

Ombud Council 2025/26 Annual Report

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