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.
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