The council is required to make a judgement on Right of Use (ROU) assets in particular Private Sector Lease (PSL) terms. If the lease term has expired but the property has not been handed back, the council assesses if an extension is in progress, if an extension is to be processed but not yet agreed the council assumes a standard 2 year term will be renewed and applies relevant accounting practices under ROU assets for the lease liability.
The council has concluded that private sector leases (PSLs) should not be subject to the Code's indexation approach and are therefore held on a historic cost basis (i.e. IFRS 16 measurement) rather than indexed valuation. This reflects the distinct accounting treatment of leases under IFRS 16, as adopted by the CIPFA Code, whereby right-of-use assets are initially measured at the value of the lease liability (based on discounted contractual cash flows using the prevailing index at commencement) and are subsequently accounted for through depreciation and liability remeasurement, rather than periodic revaluation.
Events after the balance sheet date are those events, both favourable and unfavourable, that occur between the end of the reporting period and the date when the Statement of Accounts is authorised for issue. Two types of events can be identified:
Those that provide evidence of conditions that existed at the end of the reporting period – the Statement of Accounts is adjusted to reflect such events.
Those that are indicative of conditions that arose after the reporting period – the Statement of Accounts are not adjusted to reflect such events, but where a category of events would have a material effect, disclosure is made in the notes of the nature of the events and their estimated financial effect.
The statement of accounts was authorised for issue by the Strategic Director Resources (Chief Financial Officer) on 30 June 2026. Events taking place after this date are not reflected in the financial statements or notes. Where events taking place before this date provided information about conditions existing at 31 March 2026, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information. This includes any amendments following the audit of the accounts.
On the 10 June 2026 Cabinet agreed to the winding up of the council's two subsidiaries Broadway Living Limited and Broadway Living Registered Provider. After extensive restructuring work the decision was taken in the best interest of both tenants and the council to transfer the housing assets of the companies into the council. To date, the full financial impact has not been finalised, however plans are in place to manage any unfavourable impacts as a result of releasing liabilities between the group entities.
The Statement of Accounts contains estimated figures that are based on assumptions made by the council about the future or that are otherwise uncertain. Estimates are made taking into account historical experience, current trends and other relevant factors. However,