QCH Report FINAL V2 - Flipbook - Page 26
Queenscourt Hospice (Registered company number 2102320)
Notes to the Financial Statements
For the year ended 31 March 2024
1
Accounting policies (continued)
Operating leases
Rentals applicable to operating leases are charged to the SOFA on a straight line basis over
the term of the lease.
Taxation
The Company is a registered charity and consequently there is no liability to taxation. The
subsidiary companies are subject to UK Corporation Tax on profits not covenanted to the parent
charity.
Government grants
Government grants are recognised at the fair value of the asset received or receivable when
there is reasonable assurance that the grant conditions will be met and the grants will be
received. A grant that specifies performance conditions is recognised in income when the
performance conditions are met. Where a grant does not specify performance conditions it is
recognised in income when the proceeds are received or receivable. A grant received before
the recognition criteria are satisfied is recognised as a liability.
Judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, the trustees are required to make
judgements, estimates and assumptions about the carrying amount of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised where the
revision affects only that period, or in the period of the revision and future periods where the
revision affects both current and future periods. The trustees believe that the following
estimates and assumptions are significant in respect of the carrying amount of assets and
liabilities:
Valuation of investment properties
Investment properties held by the group are reviewed annually by the trustees, utilising the
advice from a local estate agent, but not a professional valuer. The trustees consider local
market factors and rental yields when reviewing the fair value of investment properties, as well
as the opinion of local estate agents. Given the uniqueness of the organisational property
portfolio, the trustees appreciate the inherent difficulties and uncertainties around applying a
fair value to the investment property portfolio, however, feel experienced enough to do this
annually.
Recognition of legacy income
Throughout the year the trustees maintain a register of notifications of legacy income to be
received, bequeathed by our valued donors. At each year end date, the trustees must provide
for a figure of legacy income receivable, when its value and receipt is both measurable and
probable. Whilst constrained by both the legal process and other market factors, such as
property values, the trustees feel confident that their experience allows them to make accurate
estimations and judgements around this future right to income in respect of legacies.
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