Statement of Accounts 2011/2012 - Blackburn with Darwen Borough ...

GLOSSARY OF TERMS
Accounting policies - Those principles, bases, conventions, rules and practices
applied by the Council, which define the process by which
transactions and other events are reflected in financial
statements. For example, an accounting policy for a particular
type of expenditure may specify whether an asset or loss is to be
recognised; the basis on which it is to be measured; and where
in the revenue account or Balance Sheet it is to be presented.
Accruals - The concept that income and expenditure is recognised as it is
earned or incurred, not as money is received or paid.
Actuarial gains and losses - For a defined benefit pension scheme, these are the changes in
actuarial deficits or surpluses that arise because either events
have not coincided with the actuarial assumptions made for the
last valuation (experience gains and losses), or the actuarial
assumptions have changed.
Approved budget - The planned expenditure and income, for the financial year in the
case of revenue, and over the life of the project in the case of a
capital scheme.
Audit Commission - An independent body, established under the Local Government
Finance Act 1982. The Audit Commission is responsible for the
appointment of external auditors to local authorities, has a duty
to ensure that local authorities make proper arrangements to
secure economy, efficiency and effectiveness in their use of
resources and has the power to undertake special “value for
money” studies.
Best Value Accounting Code of
Practice (BVACOP) - A Code of Practice prepared to provide accounting guidance
on financial reporting to stakeholders which is designed to
enhance the comparability of local authority financial information.
The Code represents proper accounting practice for the
purposes of Best Value reporting.
CIPFA - Chartered Institute of Public Finance and Accountancy. The
Institute provides financial and statistical information for local
government and other public sector bodies and advises central
government and other bodies on local government and public
finance matters.
Capital charge - A charge to service revenue accounts to reflect the cost of fixed
assets used in the provision of services.
Capital employed - The funds used by the Council to finance its long term
operations.
Capital expenditure - Expenditure on the acquisition of a fixed asset or expenditure
which adds to and not merely maintains the value of an existing
fixed asset.
Contingent asset - A possible asset arising from past events whose existence will
be confirmed only by the occurrence of one or more uncertain
future events, not wholly within the Council’s control.
Contingent liability - EITHER a possible obligation arising from past events whose
existence will be confirmed only by the occurrence of one or
more uncertain future events not wholly within the Council’s
control, OR a present obligation arising from past events where it
is not probable that a transfer of economic benefits will be
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