King's College Hospital Charity - Annual Report & Accounts 2019-20 - Flipbook - Page 31
1.5. Pensions contributions
The financial statements are prepared in accordance
with the accruals concept. All expenditure is recognised
once there is a legal or constructive obligation to make
a payment to a third party.
Pension costs for all staff, including staff seconded
from King’s College Hospital Foundation Trust, are
charged to the Statement of Financial Activities when
they become due. With the exception of pension costs
relating to seconded staff, the costs relate to defined
a) Cost of raising funds
The costs of raising funds are the costs associated with
generating income for King’s College Hospital Charity.
b) Expenditure on charitable activities
Expenditure on charitable activities includes grants
payable as well as other costs including support costs.
Grants payable are payments made to third parties,
primarily King’s College Hospital Foundation Trust,
in the furtherance of the Charity’s objectives. They
are accounted for on an accruals basis where the
conditions for their payment have been met or where
a third party has a reasonable expectation that they
will receive the grant and when the liability can be
quantified with reasonable certainty.
c) Support costs
Support costs, which include governance costs,
relate to those functions that assist the work of the
Charity but are not directly undertaking fundraising
or charitable activities. These costs have been
apportioned between the cost of raising funds and
expenditure on charitable activities based on the
estimated proportion of staff time engaged in
d) Irrecoverable VAT
Irrecoverable VAT is charged as a cost against the
activity for which the expenditure was incurred.
1.4. Employee benefits
The costs of short-term employee benefits are
recognised as a liability and an expense.
The pension costs for the seconded staff is for
membership of one of the NHS defined benefit
schemes. The member of staff left the Charity in
The Charity is considered to pass the tests set out
in Paragraph 1 Schedule 6 of the Finance Act 2010
and therefore it meets the definition of a charitable
company for UK corporation tax purposes.
Accordingly, the charity is potentially exempt from
taxation in respect of income or capital gains received
within categories covered by Chapter 3 Part 11 of
the Corporation Tax Act 2010 or Section 256 of the
Taxation of Chargeable Gains Act 1992, to the extent
that such income or gains are applied exclusively to
Investment fixed assets are shown at market value.
Valuation gains and losses are recorded in the
Statement of Financial Activities as they arise with
the Balance Sheet reflecting the re-valued amounts.
Realised gains and losses on investments are calculated
as the difference between sales proceeds and opening
market value (or date of purchase if later). Unrealised
gains and losses are calculated as the difference
between market value at the year end and opening
market value (or date of purchase if later).
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