Balance Sheet

The changes to fixed assets, capital grants and accumulated depreciation are all based on the user-input business stream data.

Fixed assets at cost will first be revalued by the user input on annual property revaluation % rate, if any. The total will then be increased over the year by the effect of unit additions and transfers times the unit build costs, plus any land costs, plus any free land at fair value, plus any capitalised interest and repairs and maintenance costs, all specified by the user. The total will be decreased by the number of units sold, transferred or demolished, including part units, times the unit book value of all those disposals.

The capital grants balance will be increased by the SHG on new capital expenditure, derived from user input of an appropriate SHG/capital expenditure percentage multiplied by the capital expenditure, which is calculated from new unit additions times costs. SHG released each year, and assumed to be repaid, is a direct user input to be included if repayment is expected to be required.

Accumulated depreciation is increased each year by the annual depreciation charge, ignoring any accumulated depreciation on disposals.

Investment in other fixed assets is a user-input general assumption which will be added to other fixed assets, ie non-property fixed assets. The depreciation charge for the year will be deducted.

Any financial investments are assumed to remain at the same value over time as on the historical opening balance sheet.

Home-buy Loan is derived directly from two user inputs, namely average home-buy equity/loan and number of loans granted each year.

Home-buy Grant Loan is derived directly from two user inputs, namely average SHG received and number of loans granted each year.

Debtors and other current assets each year is calculated using the user input for debtors and other current assets % of turnover, times the turnover. Turnover is defined as the total of income from social housing, other social housing activities and non-social housing activities.

Cash and short-term investments is a user input, which is only changed if cash is generated and all debt has been repaid.

Short-term debt is assumed to remain at the same value as in the historical opening balance sheet. The cash flow is balanced through long-term debt then cash.

Creditors and other current liabilities each year is calculated by multiplying turnover by the user input for creditors and other current liabilities % of turnover.

Pension assets are assumed to remain constant at their opening balance sheet values as are other long-term creditors, also provisions and deferred income, and pension reserves.

Long-term loans, as discussed under interest paid, incorporate input data on scheduled repayments and new borrowings plus the effects of the calculated cash flow, any surplus or deficit being balanced by increasing or reducing term debt.

Total reserves, excluding pension reserves, are simply increased by the surplus for the year after tax plus any annual asset revaluation surplus. The revaluation surplus is calculated from the opening balance of properties at cost times the input annual property revaluation rate.