Notes To The Financial Statements (Cont'd)
25. Deferred Liabilities These liabilities related to transferred debt, administered by Wirral Metropolitan District Council, that was outstanding when the Merseyside County Council was abolished in 1986.
The above disclosure note states that the SORP require, local authorities to disclose the fair value of their loan portfolios, similarly this disclosure note provides a fair value for deferred liabilities. These are calculated on the same basis as for loans (using the premature repayment discounted rate):-
SSAP4 (Accounting for Government Grants) requires that grants should be credited to a Grants Deferred account and written off over the useful life of the asset, to match the depreciation of the asset to which it relates. As at 31 March 2008 and 31 March 2009 there were nil balances on the deferred grants account.
The Authority is required under the Local Government Act 2003 and the Prudential Code for Capital Finance in Local Authorities, (developed by CIPFA) to monitor its performance against a framework of mandatory indicators. These indicators set limits of performance, affordability, prudence and sustainability and are comparable to the estimated indicators approved by the Authority at its meeting on 5 February 2009:-