Under accounting requirements, the carrying value of the financial instrument value is shown in the balance sheet which includes the principal amount borrowed or lent and further adjustments for breakage costs or stepped interest loans (measured by an effective interest rate calculation) including accrued interest. Accrued interest is shown separately in current assets/liabilities where the payments/receipts are due within one year. The effective interest rate is effectively accrued interest receivable under the instrument, adjusted for the amortisation of any premiums or discounts reflected in the purchase price.
Fair value has been measured by:
Direct reference to published price quotations in an active market and/or
Estimating using a valuation technique
The council has designated the following equity at 31 March 2026 as fair value through other comprehensive income:
| Fair Value Through Other Comprehensive Income and Expenditure | Nominal £000's | Fair Value £000's | Change in fair value during 2025/26 £000's | Dividends £000's |
|---|
| Broadway Living Ltd Shares | 2,136 | 2,136 | 0 | 0 |
The council has a shareholding in Broadway Living Limited (representing 100% of the company's share capital). The shares are carried at cost of £2.136m and have not been valued as a fair value cannot be measured reliably and is not considered to be material. There are no established companies with similar aims in the council's area whose shares are traded, and which might provide comparable market data. The council has no current intention to dispose of the shareholding.
The gains and losses recognised in the Comprehensive Income and Expenditure Statement in relation to financial instruments are made up as follows:
| Income, Expenses, Gains & Losses | 2024/25
Surplus or Deficit on the Provision of services £000's | 2025/26
Surplus or Deficit on the Provision of services £000's |
|---|
| Net gains/losses on: | | |
|---|
| Financial liabilities measured at amortised cost | 11,262 | 24,219 |
|---|
| Total net gains/losses | 11,262 | 24,219 |
|---|
| Interest Revenue: | | |
|---|
| Financial Assets Measured at Amortised Cost | (28,836) | (19,402) |
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| Total Interest Revenue | (28,836) | (19,402) |
|---|
| Interest Expense | 41,277 | 38,732 |
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