||Under HM Treasury guidance, from 2009/10 elements of Impairments are now scored under Annually Managed Expenditure (AME). Impairments are defined as an unexpected or
sudden decline in the service utility of a capital asset, such as a factory, property or vehicle. This could be the result of physical damage to the asset, obsolescence due to
technological innovation, or changes to the legal code. Impairments can be written off. By their nature, Impairments are market driven and cannot be controlled hence why they
are scored in AME. The increase in RDEL Depreciation in 2009/10 is due to the write-off of a number of MOD fixed assets.
||More information on the removal of Cost of Capital from the 2010/11 Resource DEL figures can be found in the Resource Accounting & Budgeting section.
||Internal and contracted out costs for equipment repair and maintenance.
||Consumption of armament, medical, dental, veterinary, oil, clothing, and general stores.
||Estate and facilities management services and costs for buildings' maintenance.
||Cost of transportation of freight and personnel.
||Charges include rent, rates, gas, electricity, water and sewerage costs.
||Fees, such as legal costs, paid to professional organisations.
||Relates to fuel consumption by military vehicles, ships and aircraft.
||Figures in 2010/11 include a large increase in Fixed Assets Written On/Off and "Non-cash Accounting consequences of cancelled projects" following the SDSR. More details
can be found in the Resource Accounting & Budgeting section.
||Other Costs (RDEL) can include Grants-in-Aid, Exchange Rate Movements, Provisions, Receipts, Welfare, Medical and Legal Costs. Movement in Stock Related Provisions
previously shown under 'Other Costs', are now shown separately.
||Intangible Assets comprise the development costs of major equipment projects and Intellectual Property Rights.
||Single Use Military Equipment (SUME) are assets which only have a military use, such as tanks and fighter aircrafts. Dual use items i.e. those that also have a civilian use are
recorded under the other categories.
||Assets Under Construction (AUC) largely consist of major weapons platforms under construction in the Defence Equipment & Support, and a smaller element of Buildings under
construction. Once construction is complete, those platforms will transfer to the relevant Top Level Budget holder as SUME on their Balance Sheets.
||The figure in 2004/05 includes proceeds from the partial redemption of QinetiQ preference shares.
||Capital income is receipts for the sale of fixed assets.
||Other Costs (CDEL) includes long term debtors and movement on derivatives previously included in Capital Income.
||This category contains only demand led payments, such as Cash Release and Cost of Capital Credit on nuclear provisions and QinetiQ loan
||The large increase in Other AME in 2009/10 is mainly due to the movement of Impairments from Resource DEL to Annually Managed Expenditure following guidance issued by HM
Treasury. The negative figures in previous years have largely been due to fluctuations in the level of Derivatives, which are a set of financial instruments whereby MOD buy
forward contracts at a certain rate to lock into a level of payment. The value of Derivatives recorded in the Accounts is the difference between what the Department would
have paid if it had bought at a spot exchange rate against what it actually paid buying a forward rate. In 2008/09 the Department made large gains (scored as a negative in the
Accounts) in Derivatives due to fluctuations in US Dollar and Euro exchange rates: in 2009/10 the gain was not significant.
||Further details of the large increase in AME in 2010/11 can be found in the Resource Accounting & Budgeting section.