2. Basis of preparation
The financial statements of the SCA relate to the management of claims on behalf of Delegated State Authorities who are liable in respect of claims and from whom the SCA recovers the amounts of any awards and associated costs. The financial statements present the claim activities and report on the transactions processed via the SCA in the year and therefore no amount is included within the liabilities for the value of outstanding claims. The financial statements do not include an estimate for incurred but not reported (IBNR) claims.
Transactions are recognised using the cash basis of accounting as adjusted for accruals for contracted third party service provider costs and the related cost recovery from the relevant Delegated State Authority.
The reporting currency is the euro which is denoted by the symbol €.