Glossary

This glossary explains some of the technical terms that are used within this section of the report.

Public Dividend Capital

The finance (PDC) made available to the Trust to pay for its assets, including all its buildings at its start.

Fixed Assets

Assets held for use by the Trust rather than for sale or conversion into cash, e.g. buildings, equipment, fixtures and fittings.

Intangible Assets

Assets that have no physical substance e.g. software licences.

Tangible Assets

Assets that have physical substance e.g. a building.

Receivables

Entities or individuals who owe the Trust money.

Current Assets

Items such as, cash in the bank and in hand and monies owed to the Trust.

Payables

Amounts of money that the Trust owes other organisations or individuals.

Provisions

Amounts of monies that the Trust has a liability to pay in the future that can be reliably estimated.

Capital Resource

A limit that controls the amount of capital expenditure the Trust Limit can incur in a year. The Trust must have a capital resource limit to cover all capital expenditure it incurs and should maintain expenditure within the limit.

External Financing

A limit set by the Department of Health used to control and limit manage the cash expenditure of the Trust. It covers all internal and external Sources of finance available to the Trust including funding from the Department of Health. Capital Cost Absorption This duty measures the Trust’s ability to ensure that the Duty Department of Health receives a return on their investment (PDC). It measures the Trust’s Dividend against average relevant assets held.

Liquidity

The ability of the Trust to pay all its debts when they fall due.

Benefits

in kind Goods or services provided by the Trust to an employee for no cost or a greatly reduced cost.

Taxpayers’ Equity

Bottom half of the Statement of Financial Position which shows the taxpayers’ investment in the Trust.

Fixed asset impairment

Impairment losses arise when an asset is recorded in the Trust’s losses books at more than its current value. This difference between what the Trust can sell the asset for and the historic value in the Trust’s books is an impairment loss.