MPA - statement of accounts

44Notes to the Financial StatementsThe gains and losses recognised in the Income and Expenditure Account and Statement of Total RecognisedGains and Losses in relation to financial instruments are made up as follows:Financial Financial AssetsLiabilitiesLiabilities Loans and Available for Totalmeasured at receivables Sale assetsamortisedcost£’000 £’000 £’000 £’000Interest expense (2,420) 0 0 (2,420)Losses on derecognition 0 0 0 0Interest payable and similar charges (2,420) 0 0 (2,420)Interest income 0 17,063 0 17,063Gains on derecognition 0 0 0 0Interest and investment income 0 17,063 0 17,063Net gain/(loss) for the year (2,420) 17,063 0 14,643Financial liabilities (fixed rate borrowings) and financialassets (represented by loans and receivables) arecarried in the Balance Sheet at amortised cost. Theirfair value can be assessed by calculating the presentvalue of the cash flows that will take place over theremaining term of the instruments, using the following:• The weighted average interest rate, which at 31March 2008 is calculated as 5.686% for fixed rateborrowings, all of which are from the Public WorksLoan Board (PWLB).• No early repayment or impairment is recognised.• Where an instrument will mature in the next 12months, the carrying amount is assumed toapproximate to fair value. The short term loansmade by the MPA fall into this category.• The fair value of trade and other receivables istaken to be the invoiced or billed amount as statedin the table above for current receivables.The fair values calculated for long-term liabilities areas follows:31 March 31 March 31 March 31 March2008 2008 2007 2007Carrying Fair Value Carrying Fair ValueAmountAmount£000’s £000’s £000’s £000’sFinancial Liabilities 42,337 48,427 57,337 61,736