St Elizabeths Centre Annual Report End Dec 2022 FINAL - Flipbook - Page 46
Statement of accounting policies 31 December 2022
DRAFT
Support costs and governance costs are apportioned based on the proportion of floor area
occupied by the activity. Staff related costs are allocated in the same proportion as directly
attributable staff costs.
Discontinued activities
Where a decision has been made to discontinue or terminate an activity in accordance
with the definitions contained within FRS 102, income, costs and obligations associated
with the discontinuing operation are recognised within the year. The income, costs and
obligations are disclosed separately on the face of the statement of financial activities.
Tangible fixed assets
At each reporting date the charity assesses whether there is any indication that an asset is
impaired. If any such indication exists, the charity estimates the recoverable amount of the
asset and recognises this as a charge to the statement of financial activities.
All assets costing more than £1,000 and with an expected useful life exceeding one year
are capitalised.
Assets transferred to the charity are recognised at their fair value, which is treated as
deemed cost. Other assets are recognised at their purchase cost.
Depreciation is calculated at the following annual rates in order to write down each asset
to its estimated residual value over its estimated useful life:
Freehold buildings
Furniture and office equipment
Motor vehicles
3 - 10% on cost or revalued amounts
10 - 33% on cost
10% on cost
No depreciation is provided on freehold land or assets under construction.
Fund accounting
The Restricted Funds are monies raised for, and their use restricted to, a specific purpose,
or donations subject to donor imposed condition.
The Designated Funds are monies set aside out of General Funds and designated for
specific purposes by the trustees in consultation and agreement with the trustees.
Designated Funds also include funds represented by tangible fixed assets and not
available for general expenditure.
The General Fund represents unrestricted and undesignated monies used to fund working
capital and which the trustees may use at their discretion in furtherance of the charity’s
objectives.
Leased assets
Rentals applicable to operating leases where substantially all of the benefits and risks of
ownership remain with the lessor are charged to the statement of financial activities on a
straight-line basis over the life of the lease.
Cash
Cash is held in bank accounts or in hand and money available on demand or term
deposits with an expiry date within three months of the balance sheet date.
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