1. The Home Office's accounting policy for fixed assets is that tangible fixed assets are stated at the lower of replacement costs and recoverable amount. On initial recognition, assets are measured at cost, including any costs directly attributable to bringing them into working condition, such as installation. Land and buildings are restated to current value using professional valuations every five years and in the intervening years by the use of published indices appropriate to the type of land or building. All valuations are undertaken in accordance with the Royal Institute of Chartered Surveyors Appraisal and Valuation Manual.
2. As at 31 March 2007, the net book value of the Bicester site was £4.6 million. This represents the original cost of the site adjusted annually by appropriate indices since its acquisition by the department in 2004.
3. In 2008-09, the Home Office intends to instruct a firm of chartered surveyors to revalue the Bicester site (along with all its other properties) as part of a cross government exercise to comply with International Financial Reporting Standards (IFRS) for its 2008-09 Resource Accounts. This exercise will result in the restatement of the fixed asset opening balances of the 2007-08 comparatives.