MPA - statement of accounts

21Land and BuildingsCategoryLandBuildings - Operational- ResidentialImprovements to leasehold propertiesYearsIndefinite, not depreciated.Useful economic life asassessed by valuers on anindividual property basis(10 – 50 years).50 years.Shorter of expected life andlease period.Statement of Accounting PoliciesVehicles, Plant andEquipmentInformation Technology andCommunications EquipmentSoftware DevelopmentPolicing Support Vehicles includingPatrol VehiclesAir Support Unit – Helicopters3 - 73 - 53 - 510Intangible Assets Software licences. 3Community AssetsNon OperationalAssetsPictures, Museum Contents andVintage Vehicles.Assets Under ConstructionSurplus Assets Awaiting DisposalDepreciation is only applicablewhen appropriate.Not depreciated until completed.Depreciation is charged not toServices but to Non DistributedCosts.10. Charges to Revenue for Fixed AssetsService revenue accounts are debited with thefollowing amounts, to record the real cost of holdingfixed assets during the year:• Depreciation attributable to the assets used by therelevant service;• Impairment losses attributable to the clearconsumption of economic benefits on tangible fixedassets used by the service and other losses wherethere are no accumulated gains in the RevaluationReserve against which they can be written off;• Amortisation of intangible fixed assets attributableto the service.The MPA is required to make an annual provision fromrevenue to contribute towards the reduction in itsoverall borrowing requirement. The above charges arereplaced by the revenue provision in the Statement ofMovement on the General Fund Balance, by way ofan adjusting transaction with the Capital AdjustmentAccount for the difference between the two.11. Deferred ChargesDeferred charges represent expenditure that has beencapitalised under statutory provisions but does notresult in the creation of tangible assets. Deferredcharges incurred during the year have been written offimmediately and financed from capital resources.12. LeasesFinance LeasesThe MPA accounts for leases as finance leases whensubstantially all the risks and rewards relating to theleased property transfer to the Authority.All ground rents are considered to be immaterial andcharged in full to the Income and ExpenditureAccount. No obligations for these finance leases arerecognised on the Balance Sheet.Operating LeasesLeases that do not meet the definition of financeleases are accounted for as operating leases. TheMPA has a very large number of operating leases,mainly in respect of property, but also include vehicles.Rentals payable are charged to the relevant servicerevenue account on a straight-line basis over the termof the lease.