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Here the valuer has based their assessment on the cost of replacing the service potential of the assets and the uncertainty relates to the estimated costs of, rather than the extent of, service potential to be replaced. Further details of the impact of this material uncertainty can be found in the individual NHS Trust accounts and the Scottish Prison Service accounts. Additional pension liabilities arising from early retirements are not funded by the scheme except where the retirement is due to ill health. The full amount of the liability for the additional costs is charged to the outturn statement at the time the Board commits itself to the retirement, regardless of the method of payment. NPD/PPP/PFI transactions are accounted for in accordance with IFRIC 12, Service Concession Arrangements which sets out how NPD/PPP/PFI transactions are to be accounted for in the private sector.
Technical knowledge or intellectual property that is unique to the company. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. The depreciable amount should be allocated on a systematic basis over the asset’s useful life [IAS 16.50]. IAS 16 was reissued in December 2003 and applies to annual periods beginning on or after 1 January 2005.
Receivables and Other Assets
Losses in value reflected in valuations are accounted for in accordance with IAS 36, Impairment of Assets as adapted by the FReM which states that impairment losses that arise from a clear consumption of economic benefit should be taken to the outturn statement. The balance on any revaluation reserve to which the impairment would have been charged under IAS 36 should be transferred to the general fund. Vessels and aircraft are valued at depreciated replacement cost, and other plant and equipment assets are reported at depreciated historic cost. Accounting standards require discontinued operations to be presented separately in the financial statements. This allows a realistic and fair assessment of the company’s future financial results. The post-tax profit/loss of the discontinued operations is added to any post-tax gain/loss on disposal.
In the course of the restructuring of the Caledonian MacBrayne group in 2006, Scottish Ministers’ shareholding in David MacBrayne Limited was increased by 5,500,000 shares to 5,500,002 ordinary shares of £1. David MacBrayne Limited is now the holding company for the ferry operating companies CalMac Ferries Limited and Argyll Ferries Limited. Following a restructure of the Caledonian MacBrayne group in 2006, Caledonian MacBrayne Limited became known as Caledonian Maritime Assets Limited and CalMac Ferries Limited was incorporated. CFL took over operation of the Clyde & Hebrides Ferry Services as successor to Caledonian MacBrayne Limited. CMAL retained ownership of all vessels and ports, which it leases to the operator of the Clyde & Hebrides Ferry services . Individual NHS boards have their own revaluation schemes, details of which are available in the various NHS Board accounts.
What are the 6 basic values?
In this lesson, we will look at six of these core values: liberty, self-government, equality, individualism, diversity, and unity.
It also has implications across the world of business, because the accounting basis—whether fair value or historical cost—affects investment choices and management decisions. This is because after the financial crisis a lot of companies had massive write downs. Easter Ross – This scheme is a redevelopment of County Hospital, Invergordon into a Primary Care Centre and combines a community hospital and a health centre, integrating primary and community care into one community health resource. The estimated capital value at the commencement of the contract was £9m and the PFI property will revert to the board at the end of the contract.
Cash Authorisation
Claims against former independent Conveyancing and Executory Practitioners in Scotland. This is a contingent liability relating to an agreement to meet any valid claims arising from the acts or omissions of past independent conveyancing and executory practitioners, as defined by the Law Reform Scotland Act 1990. The amount of the obligation cannot be measured with sufficient reliability. Aberdeen Western Peripheral precio gamb Road/Balmedie and Tipperty – The project involves the construction of a new dual carriageway around the City of Aberdeen and upgrades the road between Balmedie and Tipperty to dual carriageway. The NPD contract also incorporates the management, operation and maintenance of these roads for the next 30 years. The unitary charge payments become committed in phases from Autumn 2016 and will cease in 2048.
How many levels of value are there?
The “traditional” levels of value chart has three levels: the control level, the marketable minority (or “as-if freely traded”) level, and the nonmarketable minority level.
That liability does not include the interest charge and service elements, which are expensed annually through the relevant portfolio outturn statement. Downward movements in value are set off against any credit balance held in the revaluation reserve until the credit is exhausted and thereafter charged to the relevant portfolio outturn statement. The preparation of these accounts requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenditure.
4 Assets Held for Sale
A note to the accounts provides an analysis of total Programme income between income applied and income not applied . Operating income is income that relates directly to the operating activities https://cryptolisting.org/ of the Scottish Government. It includes fees and charges for services provided, on a full cost basis, to external customers, public repayment work and income from investments.
The Scottish Government have some properties where the rent at review is calculated by reference to the Retail Prices Index or some other index . As described above, there are a number of variables used in the model, and adjusting any of these variables will have an impact on the overall valuation. Each of these variables can be adjusted independently of the others, resulting in a large number of combinations, so the choice of alternative scenarios is extensive. We have chosen the parameters carefully to reflect what we believe to be the most accurate position at the reporting date, but we recognise that adjusting these variables will have an impact on the valuation.
Finding Assets Held-For-Sale in Financial Statements
Everyone who wants to be an accountant knows the accounting standards but to make you stand out you must know what is going on in companies. This is the accounting policy of Vodaphone in their annual report which is freely available.Accounting policies – P. 211Business combinationsAcquisitions of subsidiaries are accounted for using the acquisition method. The cost of the acquisition is measured at the aggregate of the fair values at the date of exchange of assets given, liabilities incurred or assumed, and equity instruments issued by the Group. Acquisition-related costs are recognised in the income statement as incurred.
It includes both income applied with limit as outlined by the Scottish Budget documents and income not applied. For income categorised as being applied with limit, any excess income over that approved is surrendered to the Scottish Consolidated Fund. The grantor will recognise a liability for the capital value of the contract.
Why do we use fair value?
Fair value accounting helps businesses survive during a financially difficult time because it allows asset reduction (or the act of declaring that the value of an asset that is included in a sale was overestimated).
M77 Fenwick to Malletsheugh – This is a joint PPP entered into by the Scottish Government, East Renfrewshire and South Lanarkshire Councils. The project covers the design, construction, financing and operation of 15km of the new Scottish motorway and a new 9km local link road between the new motorway and the A726 trunk road. Whitehills Community Resource Centre – Covers Forfar, Kirriemuir and the surrounding area in conjunction with Angus Council and Lippen Care. The contract commenced 21 March 2005 and will be completed 21 March 2030, when NHS Tayside will become owners of the facility.
IAS 16 Property, Plant and Equipment requires impairment testing and, if necessary, recognition for property, plant, and equipment. An item of property, plant, or equipment shall not be carried at more than recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. Introduction- Measurement – important but unresolved by conceptual frameworks – this is a big chapter in conceptual frameworks. At the moment we have historic cost vs. fair value model – it is difficult to choose.
In order to put the necessary administrative structures in place, Scottish Ministers announced plans for the support in March 2020 with schemes, administered by Local Authorities, scheduled to commence from 1 April 2020. On 30 March, the Scottish Government issued guidance to Local Authorities on the eligibility for support, to support the consideration by Local Authorities of applications from businesses. Student Loans Company data – used for borrower characteristics, loan amounts and for derivation of earnings and employment models and income distribution in early career stages. Also used in frictional adjustments, such as part-year employment models. Student loans are valued in accordance with IFRS 9, and are recognised at fair value through the Statement of Comprehensive Net Expenditure . The value at any time is dependent upon macroeconomic conditions, forecast over the long term 30 year repayment profile.
Commitments under Leases
Ayrshire and Arran Woodland View – sharing a site in Irvine with the Ayrshire Central Hospital. The building is a NPD model and reached practical completion and handover on the 1st April 2016. The building provides a Mental Health and Frail Elderly inpatient facility for Ayrshire. The 25 year contract period commenced on the 1st April 2016 and will be completed on the 31st March 2041. At the end of the contract period the building will revert to NHS ownership. There are a number of areas where the Scottish Government is exposed to potential market risk.
- This allows a realistic and fair assessment of the company’s future financial results.
- For further details on the Forestry Grant and the Rural Priorities commitments, which arose from the Scottish Rural Development Plans, see the Scottish Forestry annual report and accounts.
- Financial modelling is used for a variety of scenario planning, budgeting and business analysis purposes.
- Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.
The recoverable amounts for Spain, Ireland, Romania and Vodafone Automotive are €5 billion, €1 billion, €0 billion and €0 billion respectively, and based on value in use calculations. Many countries have required businesses to limit or suspend operations and implemented travel restrictions and quarantine measures. The measures taken to contain the virus have adversely affected economic activity and disrupted many businesses. “ Fair value” accounting may have been designed to give investors more useful information about a group’s valuation. But in practice it has created a highly prescriptive system where accounting standards allow asset values to be marked up in value, and future profits anticipated.