JCPSG | TRAC Guidance

Part III - Annual TRAC

Section E: Cost adjustments

  1. This is part of the pyramid of costs




    Cost attribution to activity    		 part of the Costing Schematic diagram
    Time allocation to activity
  2. Two cost adjustments should be made to the costs in institutions’ financial statements to produce the full economic cost total used in TRAC. These are the:

    infrastructure adjustment; and

    cost of capital employed

  3. Guidance on these is given in document linkAnnex 15.
  4. A third cost adjustment – exceptional items – was used in the initial introduction of TRAC but no longer applies.