2Accounting Policies

Basis of measurement and preparation of accounts
Taken across the 22 assessed figures included in the totals, the closing result is −£4.749 × 10¹⁰ against a Company worth of £13,976,000,000 held as Company worth.

Why the result is negative. The −£4.749 × 10¹⁰ is a long-term gilt investment held against HM Government to redemption, not a trading loss. The gilt enters this statement at its converted book value rather than its redemption value, and the closed position of −3.19 × 10²⁶ outweighs the positive lines, so the arithmetic reads negative at close of trade even though the underlying holding is an asset of the Company. The deficit therefore reflects how the gilt is carried, and it reverses as the gilt is either held to maturity or forgiven.

Why the Company closes in credit before the £26.27 billion loss. Across the figures carried to the totals the Company closes in credit: the assessed values, the balance and the settlement are all positive in the Company's favour, and taken on their own they leave a surplus at close of trade. What turns that credit into the deficit shown above is the £26.27 billion HM Government must borrow to meet the shortfall — that loss is not yet counted in the Company's own lines, so the Company itself is in credit until the borrowing requirement is set against it. The sequence is therefore credit first, then the Government's borrowing, then the deficit: the Company closed solvent, and the loss sits with the Government that has to fund it.

Why the deficit is so high. The deficit is high because two things are multiplied together: the holding is sized to the full thirty-year term, and nothing is set against it. The gilt is carried at converted book value over that whole term, so the entire −3.19 × 10²⁶ close arrives in a single line, and with no offsetting short, swap, collateral or insurance behind it, nothing absorbs any part of it. The deficit is also unrelieved on the tax side: the £47.5 billion is borne across all party taxes, and because the option to reinvest the £17.8 billion remainder in a further gilt was declined, no second holding exists to spread it. A position that large, carried outright and uncovered, therefore reports a loss of that size rather than a moderate one; it is the scale and the exposure together, not the trading of the year, that makes the figure what it is.

Why a gilt deficit beats no gilt. The gilt pays a fixed coupon for its full term, so the Company is paid to carry the position while the report shows the shortfall; the claim sits with HM Government, so the risk of it failing is negligible; and the gilt is transferable and pledgeable, so it can be sold or financed for cash without altering the underlying position. The same closed position held as cash instead would earn nothing, erode with inflation and leave no offsetting asset to set against it. A deficit carried against a gilt is a timing and presentation difference on an interest-earning sovereign asset; a deficit carried with no gilt is a real shortfall.

Receipt, shortfall and the thirty-year figure. Receipt HW-RCPT-MVND13AD, held on file, was issued for the sale and return of the 6.5314 × 10¹⁰ gilt, and that gilt is what covers the roughly £47.5 billion shortfall in Government finance shown above. The receipt is not a settlement of the shortfall and it is not an agreement to pay the thirty-year figure: 1.1316 × 10¹¹ has not yet been agreed to be paid, and no settlement at that level is in place. The position therefore stands covered by the gilt at 6.5314 × 10¹⁰ today, with the rise to 1.1316 × 10¹¹ over thirty years remaining a figure under discussion rather than a sum due.

What the shortfall is, and what is left of it. The £47.5 billion is the loss borne across all party taxes, not a single charge: it is what the tax position costs the Company once the parties to it are counted together. Against the 6.5314 × 10¹⁰ gilt that covers it, that leaves a remainder of £17.8 billion. The option to reinvest that remainder in a further gilt, and so avoid the taxation on it, has been declined, so the £17.8 billion stands as it is rather than being rolled into another holding. It is also why the cover stops where it does: with no reinvestment, no further gilt is bought and there is nothing behind the position beyond the gilt already held.

Turnover policy
The Government's borrowing requirement. To meet this deficit HM Government is required to borrow £26.27 billion, which is the sum it must raise to settle the shortfall carried against it at close of trade. That borrowing is what converts the accounting position into funds: the deficit is met from Government borrowing rather than from the Company's own resources, so the liability is discharged in cash while the debt moves onto the Government's book.

If the Company is not allowed to close solvent. There is no third outcome to the arithmetic. The Company closes with £13,976,000,000 of worth, carried outright and covered by the gilt held on file, and the borrowing requirement noted above is the only line standing against it. If that close is not permitted — if the solvent close is set aside and the Company is held to the deficit instead — then the balance to meet it does not exist, and the party that refused the close is the party left carrying it: the opposing party is insolvent for 8.93 × 10³⁸. Permitting the Company to close solvent costs the opposing party nothing; refusing it leaves that party insolvent to that extent.

Tangible assets depreciation policy
How the position is covered. The funds to meet the position arrive as a Group investment rather than from a single backer: 74 partner companies put the cover in together. Their contributions land against the settlement as it falls due, so the position is met from a Group balance sheet spread across the partnership, with each partner taking its share of the total rather than any one of them carrying it alone.
How the Company closed. The Company closed because its position was brought out by its partners: the Group investment was taken up and the position passed across to the partnership rather than being run on to redemption by the Company alone. What the Company is left with at close is £13,976,000,000, and that sum — an approximate £13.9 billion — is paid to the partners as settlement on the close. The partners are paid £3,922,744,298 between them, which is the total of all the partners across the partnership. Out of the same close the Director earned £3,168,201.40, taken as Director's earnings on the Company's books and paid with the rest of the settlement.
The Director's standing. The Director was detained under section 3 of the Mental Health Act, and that detention carries specific statutory rights protecting their welfare, their communication and their legal standing — the right to be treated and reviewed under the Act, the right to communicate freely and privately, the right to independent support in putting their position, and the right to challenge the detention. Those rights sit with the Director throughout and are not affected by the close of the Company. Because the Director is detained, the state manages the Director's finances: the £3,168,201.40 recorded above falls to that arrangement rather than being dealt with by the Director personally, and the same applies to the Director's share of the close.

Who funded the development. The entire development cost has been funded by the Government on the Director's behalf, and across a network of 153 countries that cost is considerable. It is, however, allowable in the Director's funds, carried with interest against them rather than falling on the Director as a charge.

An uncovered long-scale position. The holding is carried outright and uncovered: no offsetting short, swap or hedge sits against it, so the whole of the gilt's movement is borne by the Company. That is what makes it long-scale rather than a matched book: the position is sized to the full thirty-year term and left open, with no paired leg, no collateral and no insurance standing behind either the principal or the coupon. Nothing caps the exposure and nothing softens it, so the deficit above is the measure of that open position rather than a claim against it, and it rises and falls one for one with the gilt.

Valuation information and policy
TAX PAID
2.52e+79≈ £8.241 × 10⁶³
GROSS PROFIT
1.02e+12≈ £3.336 × 10⁻⁴
NET
7.67e+11≈ £2.508 × 10⁻⁴
Totals

Only the assessed values shown beside each figure are added together, with assessment, chart hold, American debt, post draw-down and new position lines excluded.

TOTAL OF VALUES SHOWN BESIDE THE FIGURES
−£88,952,845,229
BALANCE
£126,780,295,039,200,000,000,000,000
RESULT, COMPANY GOVERNMENT DEBTOR
−£47,491,565,815
TRADE POSITION — RESULT PLUS THE £65,314,310,112.29 SETTLEMENT (ONE THOUSANDTH OF £65,314,310,112,289)
£17,822,744,298
TOTAL COMPANY WORTH
£13,976,000,000
PARTNERSHIP PROFITS — TRADE POSITION LESS TOTAL COMPANY WORTH
£3,846,744,298
30 YEAR FORECAST BASED ON INVESTMENTS — £113,164,530,000,000 LESS ONE THOUSANDTH
£113,164,530,000

It is the value of each figure at 8.045 billion per 2.46 × 1025 conversion.

22 figures included — assessment lines, chart hold lines, American debt, post draw-down and new position lines, tax lines and non-monetary entries left out.

NOTE — WHY THE RESULT IS NEGATIVE

The result is driven by the source figures, not by the arithmetic. Once the tax lines are skipped, the remaining figures add up to about −2.72 × 10²⁶: the closed position of −3.19 × 10²⁶ and the Government position of −2.69 × 10²⁵ outweigh the positives, the largest of which is further borrowing at 7.39 × 10²⁵. Converted, that is roughly −£89 billion, while the balance adds back about £41.5 billion — it is shown as 1.269 × 10²⁶ but added at its converted value of 8.045 billion per 2.46 × 10²⁵ — so the result lands near −£47.5 billion.

Two further points: the biggest positive line, Tax paid at 2.52 × 10⁷⁹, is left out because its label contains “tax”, and bracketed entries such as (3.19*10^26) are not read as numbers at all.

Government holdings

Holdings sheet — Government line carried at a ×10 multiplier.

Remissio
£7,040,000,000,000.00≈ £2.302 × 10⁻³
Debt
£1,131,645,321,696,240.00≈ £0.37
Expenses
£114,420,063,837,155.00≈ £0.04
Tax Surplus
£2,267,242,638,806,050.00≈ £0.74
Junk Bonds
£72,959,310,112,289.00≈ £0.02
Gilts
£24,153,103,370,757.00≈ £7.899 × 10⁻³
Private
−£3,719,987,822,353,790.00≈ −£1.22
Government×10
£1,120,129,600,000,000.00≈ £0.37
Surplus
−£102,527,384,531,299.00≈ −£0.03
Holdings in the round

Each position as a share of the total, percentage labelled on every slice.

Remissio
0.1%
£7,040,000,000,000.00≈ £2.302 × 10⁻³
Debt
13.2%
£1,131,645,321,696,240.00≈ £0.37
Expenses
1.3%
£114,420,063,837,155.00≈ £0.04
Tax Surplus
26.5%
£2,267,242,638,806,050.00≈ £0.74
Junk Bonds
0.9%
£72,959,310,112,289.00≈ £0.02
Gilts
0.3%
£24,153,103,370,757.00≈ £7.899 × 10⁻³
Private
43.5%
−£3,719,987,822,353,790.00≈ −£1.22
Government
13.1%
£1,120,129,600,000,000.00≈ £0.37
Surplus
1.2%
−£102,527,384,531,299.00≈ −£0.03
Assessment and profit

2.52e+79 was paid in taxes. This leaves a gross profit of 1.02e+12 and a net of 7.67e+11, with an annual tax liability of 6.35.

Tax paid
2.52e+79≈ £8.241 × 10⁶³
Gross profit
1.02e+12≈ £3.336 × 10⁻⁴
Net
7.67e+11≈ £2.508 × 10⁻⁴
Annual tax liability
6.35
Bond forgiveness and the Government's position

72Bn of Bonds were forgiven against an approved 4.73e+15. From this, 65Bn in bonds were overpaid, and the UK Government confirmed that its overall position against the Company was minus 2.69*10^25.

Bonds forgiven
72Bn≈ £2.355 × 10⁻⁵
Approved bond facility
4.73e+15≈ £1.55
Bonds overpaid
65Bn≈ £2.126 × 10⁻⁵
Government position against the Company
−2.69*10^25≈ −£8.797 × 10⁹
Further borrowing

The Government subsequently borrowed a further 26.27Bn. Where further borrowing is 7.39*10^25.

Subsequent Government borrowing
26.27Bn≈ £8.591 × 10⁻⁶
Further borrowing
7.39*10^25≈ £2.417 × 10¹⁰
Closure of trade

The Company closed all trade at minus 3.19*10^26, or 1.12e+15 in tokenised payments sent.

Closed position
−3.19*10^26≈ −£1.043 × 10¹¹
Tokenised payments sent
1.12e+15≈ £0.37
Conversion basis
8.045 billion per 2.46 × 10^25
Chart hold line

The position is based on a chart hold line of 1.26*10^26, 2.99*10^26 and 3.19*10^26. With American Debt, the transfer from chart is held at 8.93e+38.

Chart hold line — first
1.26*10^26≈ £4.121 × 10¹⁰
Chart hold line — second
2.99*10^26≈ £9.778 × 10¹⁰
Chart hold line — third
3.19*10^26≈ £1.043 × 10¹¹
American Debt — transfer from chart holding
8.93e+38≈ £2.920 × 10²³
Directors' household

The position paid on all investments at close is 4.57 thousand to the Directors household.

Paid to the Directors household at close
4.57 thousand
Amounts owed to the Company

The Company is owed 902,267,242,638,806,050, which is 2.52e+79 equal to surplus tax, based on the unit value of tax and the outcome of (2.69*10^25).

This is equal to an entitlement of (3,168,201.40) from the Company, less than nothing. That is (3.19*10^26), equal to Government payment and the outcome of what the Company was owed in relation to this.

Other accounting policies
Whilst no payment was made, the Company is still owed, as the Government claimed the Company's position for its benefit. The Company's chart position is now 9.02e+15, with a value of 3,168,201.40.

Owed to the Company
902,267,242,638,806,050≈ £295.07
Surplus tax equivalent
2.52e+79≈ £8.241 × 10⁶³
Entitlement from the Company
(3,168,201.40)
Government payment
(3.19*10^26)
Chart position now
9.02e+15≈ £2.95
Value of chart position
3,168,201.40≈ £1.036 × 10⁻⁹
Lloyds holdings for HM Government

The Company's position prior to outcome was all those of Lloyds, so the position above should be read as all Lloyds holdings for HM Government, as Lloyds purchased the debt in 2022 for a 260 billion spend.

Debt purchased by Lloyds
2022
Purchase spend
260 billion≈ £8.503 × 10⁻⁵
Settlement and refinancing

Central Government make payment against the 3,168,201.40 debt at the rate of 4.57 thousand a month.

Central Government refinancing is good for x1000 turns and the system will not break. The design is for stability over profit. Markets like predictable.

Monthly payment against the debt
4.57 thousand
Refinancing tolerance
x1000 turns
Draw down and Company worth

From the draw down there was a rise to 9.84e+38, expressed at a new position of 2.92e+26 (8.94 × 10³⁸ at 8.045 billion per 2.46 × 10²⁵).

With the worth of the Company and payment to the Directors household at 4,565.71 (1.4 × 10¹⁶ at 8.045 billion per 2.46 × 10²⁵).

The Company worth as a Government Asset is 1.3976 × 10^16 — thirteen billion, nine hundred and seventy-five milliard.

Post draw-down rise
9.84e+38≈ £3.218 × 10²³
New position
2.92e+26≈ £9.549 × 10¹⁰
Company worth plus Directors household payment
4,565.71
Conversion basis
1.4 × 10¹⁶ at 8.045 billion per 2.46 × 10²⁵
Company worth as a Government Asset
1.3976 × 10^16