Annual Report and Financial Statements 2022-2023 - Flipbook - Page 30
Depreciation is calculated to write down the cost or
valuation less estimated realisable value, of all tangible
fixed assets over their expected useful lives.
Depreciation is recognised on a straight-line basis over
the following periods:
Freehold buildings: 25-50 years
Short leasehold land and buildings: length of the lease
Motor vehicles: 3 to 8 years
Computer and other equipment: 3 to 5 years
Freehold land is not depreciated.
At each reporting date fixed assets are reviewed to
determine whether there is any indication that those
assets have suffered an impairment loss.
RETIREMENT BENEFITS – DEFINED
CONTRIBUTION PENSION SCHEME
The pension costs included in the Statement of Financial
Activities represent the total contributions paid in the
year.
RETIREMENT BENEFITS – MULTI-EMPLOYER
PLANS
Contributions are recognised in the Statement of
Financial Activities in the period to which they relate
as there is insufficient information available to use
defined benefit accounting. A liability is recognised for
contributions arising from an agreement with the multiemployer plan that determines how the Charity will fund
a deficit. Contributions are discounted when they are
not expected to be settled wholly within 12 months of
the year end.
PROVISIONS FOR LIABILITIES
FINANCIAL INSTRUMENTS
The Charity holds only basic financial instruments, being
trade debtors, amounts owed by group undertakings,
accrued income, other debtors, trade creditors,
cash, overdrafts, accruals, and other creditors, which
are recognised at cost, less provision for estimated
irrecoverable assets.
RESTRICTED FUNDS
Restricted funds are to be used for specific purposes as
laid down by the donor. Expenditure that meets these
criteria is allocated to the fund.
When grants and donations are received for a specific
purpose involving capital investment, the cash will be
recorded against a restricted fund. When the investment
has been made, the relevant capital asset will be
recorded against the relevant fund, and depreciation of
the asset charged against the fund.
Once any restrictions on the use of the asset have
expired, the asset will be transferred from the restricted
fund to unrestricted funds.
UNRESTRICTED FUNDS
Unrestricted funds are incoming resources received or
generated for charitable purposes and are available for
use at the discretion of the Trustees in furtherance of the
general objectives of the Charity.
FINANCIAL INSTRUMENTS
The charity only holds basic financial instruments. The
financial assets and financial liabilities of the charity are
as follows:
Provisions are recognised when the Charity has a
present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount
can be estimated reliably.
Debtors - trade debtors, other debtors and grants
receivable are basic financial instruments and are debt
instruments measured at amortised cost, this can be
seen in note 13. Prepayments and accrued income are
not financial instruments.
HOLIDAY PAY ACCRUAL
Cash at bank - is classified as a basic financial
instrument and is measured at face value.
The Charity recognises an accrual for annual leave
accrued by employees as a result of services rendered
in the current year and which employees are entitled
to carry forward and use in future years. The accrual is
measured at the salary cost payable for the period of
absence.
TERMINATION PAYMENTS
Provision is made for redundancy and other termination
payments when a constructive obligation has been
created through communication with affected pools of
employees and the cost can be estimated reliably.
LEASED ASSETS
Assets that are the subject of finance leases are
capitalised at their fair value and depreciated over the
length of the lease. The finance charge under the lease is
also written off over the length of the lease.
Rentals paid under operating leases are charged to the
Statement of Financial Activities on a straight-line basis
over the term of the lease.
30TCV Annual Report and Financial Statements 2022-23
Liabilities - accruals are classified as financial
instruments, and are measured at amortised cost, this
can be seen in note 16. Taxation and social security are
not included in the financial instruments disclosure.
Deferred income is not deemed to be a financial liability,
as the cash settlement has already taken place and there
is simply an obligation to deliver services rather than
cash or another financial instrument.
