St Elizabeths Centre Annual Report End Dec 2022 FINAL - Flipbook - Page 44
Statement of accounting policies 31 December 2022
Principle
accounting policies
DRAFT
The principal accounting policies adopted, judgements and key sources of estimation
uncertainty in the preparation of the financial statements are laid out below.
Basis of preparation
These financial statements have been prepared for the year ended 31 December 2022
with comparative information given in respect to the year ended to 31 December 2021.
The financial statements have been prepared under the historical cost convention with
items initially recognised at cost or transaction value unless otherwise stated in the
relevant accounting policy note.
The financial statements have been prepared in accordance with Accounting and
Reporting by Charities: Statement of Recommended Practice applicable to charities
preparing their accounts in accordance with the Financial Reporting Standard applicable in
the UK and Republic of Ireland (FRS 102) (‘Charities FRS 102 SORP 2019’), the Financial
Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).
St Elizabeth’s Centre is a public benefit entity as defined by FRS 102.
The presentation currency of these financial statements is GBP.
Basis of consolidation
St Elizabeth’s Centre Welfare Services Limited (incorporated on 25 October 2019), a
private company limited by guarantee and not having share capital, is under the control of
St Elizabeth’s Centre as its wholly owned subsidiary. The company has not traded since
incorporation and as such, these financial statements are not consolidated.
Assessment of going concern
Detailed
projections
the whether
period to the
December
that thereassumption
will be a cash
The
Trustees
havecovering
assessed
use of2024
the indicate
going concern
is
appropriate
preparing
thesebefore
financial
statements
made
this
assessment
constraint inin
mid
to late 2024
shortly
revertingand
to athey
cashhave
surplus.
The
Trustees
are in
in
respect talks
of a period
oneayear
from the to
date
of the
approval
of these financial
advanced
to secure
commitment
bridge
this
cash requirement.
These statements.
discussions,
supported by the Charity’s substantial fixed assets, have given comfort to the Trustees to
The
Trustees
have concluded
that there
are no material
uncertainties
related tothat
events
or
conclude
that there
are no material
uncertainties
relating to
events or conditions
would
conditions
that doubt
wouldoncast
on the
ability
St Elizabeth’s
Centre
to
cast significant
the significant
ability of Stdoubt
Elizabeth’s
Centre
to of
continue
as a going
concern
continue
as
a
going
concern
and
the
trustees
believe
that
the
Charity
has
sufficient
and the Trustees believe that the Charity has sufficient reserves and resource to withstand a
reserves and resources to withstand any temporary drop in income or any additional
temporary drop in cash flow and income or any additional unexpected liability.
unexpected liability.
Critical accounting estimates and areas of judgement
Preparation of the financial statements requires the trustees and senior management to
make significant judgements and estimates.
The items in the financial statements where these judgements and estimates have been
made include:
¨
the estimation of the useful economic life of tangible fixed assets; and
¨
the basis of impairment of the Adult Home in light of its closure in November 2022 and
associated presentation of Home activities as “discontinued” in these financial
42
statements.
St Elizabeth’s Centre
34