The SORP requires local authorities to disclose the fair value of their loan portfolios. These figures have been calculated as follows:-
The PWLB’s 2008 and 2009 figures have been calculated by reference to the premature repayment set of rates in force on 31 March 2008 and 31 March 2009 respectively. For both years the respective interest rates have been used as a discounting factor applied to future cash flows of the undischarged balance of the loans at 31 March 2008 and 2009.
Similarly a calculation has been done for the fair value of the Department for Transport Loans using the national loans rates at 31 March 2008 and 2009 as discount factors:-