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

GLOSSARY OF TERMS
Net expenditure - The cost of providing a service after the deduction of any
income.
Net realisable value - The open market value of the asset in its existing use (or market
value in the case of non-operational assets), less the expenses
to be incurred in realising the asset.
Operating lease - A lease other than a finance lease.
Operational assets - Fixed assets held and occupied, used or consumed by the
Council in the direct delivery of those services for which it has
either a statutory or discretionary responsibility or for the service
or strategic objectives of the Council.
Past service cost - For a defined benefit scheme, the increase in the present value
of the scheme liabilities related to employee service in prior
periods arising in the current period as a result of the introduction
of, or improvement to, retirement benefits.
Post-employment benefits - All forms of consideration given by an employer in exchange for
services rendered by employees that are payable after the
completion of the employment. Includes pensions but not
termination benefits payable as a result of redundancy/ voluntary
redundancy, because these are not given in exchange for
services rendered by employees.
Precept - A method by which local parishes, Lancashire Police Authority
and Lancashire Combined Fire Authority obtain the income they
require by Blackburn with Darwen Borough Council adding the
precept to its own Council Tax and paying over the appropriate
cash collected.
Property, plant and equipment - Tangible assets (i.e. assets with physical substance) held by the
Council for use in the production or supply of goods and
services, for rental to others, or for administrative purposes, and
expected to be used for more than one period.
Provision - An amount set aside by the Council for any liability of uncertain
timing or amount that has been incurred.
Public Works Loan Board
(PWLB) - A central government agency which provides long and short term
loans to local authorities at interest rates slightly higher than
those at which the government itself can borrow. Local
authorities are able to borrow a proportion of their requirements
to finance capital spending from this source.
Related parties - Two or more parties are related when at any time during the
financial period one party has direct or indirect control of the
other party, or the parties are subject to common control by the
same source. Also, where one party has influence over the
financial and operational policies of the other, or both parties are
subject to the influence from the same source, to an extent that
they might be inhibited from pursuing their own separate
interests.
Related party transactions - A related party transaction is the transfer of assets or liabilities or
the performance of services by, to or for a related party
irrespective of whether a charge is made. The materiality of
related party transactions should be judged not only in terms of
their significance to the Council, but also in relation to its related
party.
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