QCH Report FINAL V2 - Flipbook - Page 24
Queenscourt Hospice (Registered company number 2102320)
Notes to the Financial Statements
For the year ended 31 March 2024
1
Accounting policies
Basis of preparing the financial statements
The financial statements of the group and parent charitable company, which is a public benefit
entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102)
'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to
charities preparing their accounts in accordance with the Financial Reporting Standard
applicable in the UK and Republic of Ireland (FRS 102) (effective 1 October 2019)', Financial
Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic
of Ireland' and the Companies Act 2006. The financial statements have been prepared under
the historical cost convention with the exception of investments which are included at market
value. The financial statements are presented in sterling which is the functional currency of the
charity.
The statement of financial activities (SOFA) and balance sheet consolidate the financial
statements of the Charity and its subsidiary undertakings. The results of the subsidiary
undertakings are consolidated on a line by line basis.
The Charity is a company limited by guarantee. The members of the company include the
trustees named in the report of the trustees. In the event of the Charity being wound up, the
liability in respect of the guarantee is limited to £1 per member of the Charity.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement
to the funds, it is probable that the income will be received and the amount can be measured
reliably. Legacies and grants are recognised in the Statement of Financial Activities when they
become receivable and it is reasonably certain that they will be received and can be measured
with sufficient reliability.
Income tax is recoverable monthly on completion of the
documentation. Income is deferred only when the Charity has to fulfil conditions before
becoming entitled to it. Gifts in kind are included at valuation, with the exception of food where
the total involved is not material. Goods donated for resale are included as income when sold.
No amounts are included in the financial statements for services donated by volunteers.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation
committing the charity to that expenditure, it is probable that a transfer of economic benefits will
be required in settlement and the amount of the obligation can be measured reliably.
Expenditure is accounted for on an accruals basis and has been classified under headings that
aggregate all cost related to the category. Where costs cannot be directly attributed to particular
headings they have been allocated to activities on a basis consistent with the use of resources.
The expenses of operating the Charity shops including depreciation of fixed assets employed
in the shops relate entirely to fundraising. Also included in fundraising are separately
identifiable expenses incurred at the main hospice building and in local support groups in
connection with specific fundraising activities.
Tangible fixed assets
All assets costing more than £5,000 are capitalised. Assets costing less than this are written off
within 12 months.
Depreciation is provided at the following annual rates in order to write off each asset over its
estimated useful life.
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