CAPITAL EXPENDITURE

Spending on buying, creating or significantly improving long-term assets. If spending does not meet the rules for capital spending, it must be treated as day-to-day revenue spending.

CAPITAL FINANCING COSTS

The yearly cost of funding capital spending, including loan repayments, interest, lease costs and similar charges.

CAPITAL GRANTS UNAPPLIED

Capital grants or contributions that the council has received or is entitled to, but has not yet used by the end of the year.

CAPITAL RECEIPTS

Money received from selling long-term assets. It can only be used for purposes allowed by regulation, such as funding new capital spending.

CAPITAL RECEIPTS - DEFERRED

Money from selling assets that will be received in agreed instalments over time.

CARRYING AMOUNT

The value of an asset shown in the accounts after deducting depreciation and any loss in value.

CIPFA

The professional body that provides guidance on how local authority accounts should be prepared.

CIPFA PRUDENTIAL CODE

Guidance that helps councils decide whether their borrowing and capital spending plans are affordable, sensible and sustainable.

CODE OF PRACTICE

The Code sets out the accounting rules councils must follow so their accounts give a fair and accurate picture of their financial position and transactions.

The Code explains the accounting practices councils must use for:

• Statements of Accounts prepared under the legal rules for England.
• Audits of those accounts carried out under the legal audit rules.

The Code explains how councils should record and disclose transactions, using recognised accounting standards.

• International accounting standards used for financial reporting.
• International accounting standards for public sector organisations.
• UK accounting standards and accepted accounting practice.

The Code has applied since 1 April 2010 and is updated each year.