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Notes to the financial statements
1.12. Critical accounting estimates
Apportionment of investment management costs
between funds (where this information is not provided by and areas of judgement
the investment manager) is done pro rata according to the
respective market values.
In preparing financial statements, it is necessary to
make certain judgements, estimates and assumptions
that affect the amounts recognised in the financial
statements. The following judgements and estimates
1.9. Cash and cash equivalents
are considered by the Trustees to have most significant
Cash and cash equivalents include cash in hand, deposits effect on amounts recognised in the financial
statements:
held at call with banks and other financial institutions,
● The basis on which legacies are recognised in
other short-term liquid investments with original
the year (recognition takes place when receipt
maturities of three months or less.
is probable);
● The point at which grants payable from designated
funds are recognised as constructive obligations;
1.10. Financial instruments
● The allocation of grant commitments between
amounts falling due within one year and falling due
The Charity has elected to apply the provisions of
in more than one year; and
Section 11 ‘Basic Financial Instruments’ and Section
● Estimating the value of gifts in kind.
12 ‘Other Financial Instruments Issues’ of FRS 102 to all
of its financial instruments. Financial instruments are
Estimates used in the financial statements, particularly
recognised in the company’s balance sheet when the
with respect to the value of listed investments, where
Charity becomes party to the contractual provisions
values are subject to global market forces, are subject
of the instrument. Financial assets and liabilities are
to a greater degree of uncertainty and volatility.
offset, with the net amounts presented in the financial
statements, when there is a legally enforceable right to
set off the recognised amounts and there is an intention In the view of the Trustees in applying the accounting
policies adopted, no other judgements were required
to settle on a net basis or to realise the asset and settle
that have a significant effect on the amounts
the liability simultaneously.
recognised in the financial statements nor do any
estimates or assumptions made carry a significant risk
With the exceptions of prepayments and deferred
of material adjustment in the next financial year.
income, all other debtor and creditor balances together
with investments are considered to be basic financial
instruments under FRS 102.
1.13. Linked charities
1.11. Fund accounting
Restricted funds comprise monies raised for, or
where their use is restricted to, a specific purpose, or
contributions subject to donor imposed conditions.
Each of the following charities is registered separately
with the Charity Commission under the umbrella
registration for the main Charity:
● Cancer Treatment and Research Special Trust
● King’s College Hospital Patient’s Trust
● King’s College Hospital Fund
● David E Hughes Hospital Trust Fund
Unrestricted funds represent those monies that are
available for application towards achieving any charitable
Prior to 1 April 2016, the Charity’s operations were
purpose that falls within the Charity’s charitable
carried out through a registered charity of the same
objectives.
name (charity number 230729), and the financial
information relating to the predecessor charity are
Designated funds comprise unrestricted funds that
consolidated within these financial statements.
have been set aside by the Trustees and designated for
particular purposes.
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