Liam Byrne – 2014 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Liam Byrne on 2014-03-31.

To ask the Secretary of State for Business, Innovation and Skills, at what stage in the sell-off process student loans will be defined as currently subject to a sale for the purposes of revaluing impairments.

Mr David Willetts

Student loans are classified as Loans and Receivables and are carried in the Department’s Annual Report and Accounts at amortised cost in accordance with International Accounting Standards (IAS 39). Student loans are reviewed annually at the balance sheet date for any objective evidence of impairment, and the value is adjusted as necessary. This is not impacted by the sale process. In accordance with the standard, the classification of student loans will not change following initial recognition. Any gain or loss on disposal will be reported in the annual accounts following sale completion.