An investment property is one that is used solely to earn rentals or for capital appreciation or both.

A method of utilising assets where a rental charge is paid for a specified period of time, instead of outright purchase.

Are present obligations of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits or service potential.

The total amounts borrowed from external lenders for capital and temporary revenue (cashflow) purposes but not repaid at the balance sheet date.

The relevance of information contained in the financial statements is affected by its nature and materiality. Omissions or misstatements of items are material if they could, individually or collectively, influence the decisions or assessments of users made on the basis of the financial statements. Materiality depends on the nature or size of the omission or misstatement judged in the surrounding circumstances. The nature or size of the item, or a combination of both, could be the determining factor. Therefore, materiality provides a threshold or cut-off point rather than a primary qualitative characteristic which information must have if it is to be useful. An authority need not comply with the Code, as to both disclosure and accounting principles, if the information is not material to the true and fair view of the financial statements and to the understanding of users.

The minimum amount that the council must charge to the income and expenditure account to provide for the repayment of debt.

With effect from April 1990 all non-domestic properties were revalued and the government determines a national non-domestic rating multiplier every year which is applicable to all local authorities. The rateable values are set by the Valuation Office Agency of HM Revenue & Customs, and there is a statutory revaluation every 3 years. The proceeds of the business rates are partly retained by the council and the balance is redistributed to the government and Greater London Authority.

Gross expenditure less specific government grants and other income.

In the amount at which property, plant and equipment are included in the balance sheet, their historical cost or current value, less the cumulative amounts provided for depreciation.