Balance Sheet 
The changes to fixed assets, capital grants and accumulated
depreciation are all based on the user-input business stream information
then adjusted by reconciliation factors. Fixed assets at cost
are based on the opening balance, revalued according to any user-input
revaluation assumption, then adjusted for all land and housing unit additions
or disposals during the year (plus any) cost capitalisations all based
on user-inputs for each business stream.
Capital grants include the opening balance plus any additional
Social Housing Grant minus any SHG released. The opening balance for accumulated
depreciation is increased by the calculated annual charge for
housing property depreciation.
Other fixed assets, investments, home-buy
items, pension assets, other long-term creditors, provisions
and deferred income and pension reserves are effectively not
modelled but taken directly from user inputs on the projected Balance
Sheet.
Cash and short-term investments is a direct user input.
Total Short-term debt is taken straight from the projected
balance sheets and is never changed. Balancing of cash flow is achieved
via term debt and, once all debt has been repaid, via cash balances.
Debtors and other current assets and also creditors
and other current liabilities are modelled by expressing the
user inputs as a percentage of total turnover.
Cash and short-term investments is a direct user input.
Total Short-term debt is taken straight from the projected balance
sheets and is never changed. Balancing of cash flow is achieved via term
debt and, once all debt has been repaid, via cash balances.
Term debt will reflect user inputs on scheduled debt
repayments and increases in medium and long-term debt plus the effects
of cash generated or consumed. The reconciliation factor will incorporate
any unexplained shifts in debt.
Total reserves are based on opening balance, annual surplus
after tax, any increase in the calculated revaluation reserve, plus the
reconciliation factor.
For a more detailed discussion see How the Forecast Works.
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