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Notes to the 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 2022.
The results of the Charity’s subsidiary, KCHC
Trading Limited, have not been consolidated due to
immateriality, as permitted under Section 402 of
the Companies Act 2006, as it 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 longer-term 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 and have taken account
of the potential pressures on income. After making
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) 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 2021/22 gifts in kind reflect the value of office
facilities received free of charge from King’s College
Hospital Foundation Trust. There was no equivalent
value in 2020/21 as staff were working from home.
In 2020/21 gifts in kind were received to provide
support for NHS staff and patients and have been
recognised as income at their estimated market value.
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