22 Statement of Intent Statement of underlying assumptions Caution: These forecast financial statements are likely to vary from the actual financial results achieved for the period covered and from the information presented. The variations may be material. The information in the forecast financial statements may not be appropriate for purposes other than those described. These forecast financial statements have been prepared to be included within the Statement of Service Performance. The figures presented are best estimates at this time. Government funding will be adequate to cover operating costs and capital purchases. If an increase/decrease in expense category is known or reasonably anticipated, that is included with the forecast financial statements. Otherwise, the forecast financial statements have had a 3% rate of inflation included with expenses on a year by year basis. Interest income has been estimated at the net rate of 2.35% on all outstanding cash balances. No allowance has been made for revaluation of fixed assets in the forecast financial statements. It is assumed that the Law Commission will continue in its current form for the foreseeable future. It is assumed that there will be no changes to the accounting policies that would materially affect the figures represented at this tim