The Code of Practice on Local Authority Accounting in the United Kingdom 2024/25 (the Code) requires an authority to disclose information in the 2024/25 financial statements about new accounting standards that have been issued but not yet adopted.
There are no changes in accounting standards for 2026/27 that are anticipated to have a material impact on the council's financial performance or financial position.
In applying the accounting policies set out in Section 5, the council has had to make certain judgements about complex transactions or those involving uncertainty about future events. The critical judgements made in the Statement of Accounts are:
The council recognises the land and buildings used by schools in accordance with the accounting policy for Property, Plant and Equipment. These assets are recognised in the Balance Sheet if it is probable that the future economic benefits or service potential associated with them will flow to the council or the schools within its control.
The council has completed an assessment across the different types of schools it controls within the Borough. Judgements have been made to determine the arrangements in place and the accounting treatment of the land and building assets.
The council has not recognised Academies but includes all maintained schools; community schools, voluntary aided schools and foundation schools. The liabilities relating to the PFI schemes including two Academy Schools remain on balance sheet as the council is the liable party.
The council has reviewed its interest in other companies and has prepared group accounts to include entities which fall within the group boundary and are considered to be material. Following this assessment, three wholly owned subsidiaries have been considered material and have been consolidated in the group accounts. They are Broadway Living Ltd, Broadway Living RP Ltd and Greener Ealing Ltd. Further information can be found in the Group Accounts section of this document.
The council is required to make a judgement on the treatment of grants and contributions, in particular, whether there are conditions and/or restrictions and if these have been met, and whether the council is acting as principal or agent. If conditions are met, or the grant has no conditions, the income will be credited to the Comprehensive Income and Expenditure Statement, and any unused grant will be held in an earmarked reserve. For conditional grants where conditions are not met, the grant will be held as a creditor on the balance sheet. Grants where the council is acting as an agent the net balance is held on balance sheet as a creditor.