“I have considered the revised basis of valuing the railway network in the context of my audit of the SRA’s accounts. The approach adopted by the Directors of Network Rail to value the railway infrastructure assets is acceptable under financial reporting standards. It is also consistent with the accounting policies of the SRA and the latter’s requirement to prepare accounts in line with the Accounts Direction issued by the Secretary of State for Transport, including the requirement for the accounts to comply with ‘Executive Non-Departmental Public Bodies: Annual Reports and Accounts Guidance’ issued by HM Treasury.
“The policy is in addition consistent with International Accounting Standards which are planned to be adopted from 2005, whereas the previous basis of valuing the railway network was not consistent with these Standards.”
6 Feb 2004