King's College Hospital Charity - Annual Report & Accounts 2020-21 - Flipbook - Page 30
Financial Statements
Notes to the Financial Statements
1 Accounting Policies
1.1. Basis of preparation
a) General
These financial statements have been prepared, under
the historical cost convention, as modified by the
revaluation of investments being measured at fair value
within the Statement of Financial Activities.
The financial statements have been prepared in
accordance with the Financial Reporting Standard
applicable in the UK and Republic of Ireland (FRS 102).
The Charity is a public benefit group for the purposes
of FRS 102 and therefore the Charity also prepared its
financial statements in accordance with the Statement
of Recommended Practice applicable to charities (The
FRS 102 Charities SORP) and the Companies Act 2006
and Charities Act 2011.
enquiries the Trustees have concluded that there is a
reasonable expectation that the Charity has adequate
resources to continue in operational existence for the
foreseeable future. The Charity therefore continues to
adopt the going concern basis in preparing its financial
statements.
The principal accounting policies adopted in the
preparation of the financial statements are set
out below.
1.2. Income
a) Recognition
All income including legacies is included in full in
the Statement of Financial Activities as soon as the
following three factors can be met:
I)
The results of the Charity’s subsidiary, KCH Trading
Limited, have not been consolidated due to immateriality,
as permitted under section 402 of the Companies Act
2006. The company was dormant during the year.
The financial statements are prepared in sterling and
monetary amounts are rounded to the nearest pound.
b) Going concern basis
The Trustees have assessed whether the use of
the going concern basis is appropriate and have
considered possible events or conditions that might
cast significant doubt on the ability of the Charity
to continue as a going concern including the impact
of the COVID-19 pandemic. The Trustees have made
this assessment for a period of at least one year from
the date of approval of the financial statements. In
particular, the Trustees have considered the Charity’s
forecasts and projections, as updated by changes
made to address the impact of the pandemic, and have
taken account of pressures on income. After making
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Entitlement: arises when a particular resource is
receivable or control over the rights or other access
to economic benefit has passed to the Charity;
II) Probable: it is more likely than not that the
economic benefits associated with the transaction
or gift will flow to the Charity; and
III) Measurement: when the monetary value of
the income can be measured reliably and the
costs incurred for the transaction and the costs
to complete the transaction can be measured
reliably.
b) Donated services and facilities
In 2019/20 gifts in kind were received to provide
support for NHS staff and patients and have been
recognised as income at their estimated market value.
The Charity’s receives office facilities and IT support
from King’s College Hospital NHS Foundation Trust
free of charge; the value of these services is not
material and would be difficult to estimate with any
consistency from year to year. As a result no value for
these services is included in the financial statements.