KCHC Annual Review 2023-24 WEB Singles - Flipbook - Page 48
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 as the entity is not
material to the group, as permitted under Section 402
of the Companies Act 2006 and 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 recent changes
in economic factors affecting the UK and the charity
sector. 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 budgets, forecasts and
long-range 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
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S U P P O R T K I N G S .O R G .U K
future. Although the Charity has net current liabilities
of £6,447K at the balance sheet date due to the grant
commitments it has made, the timing of the payment
of those grants is determined by a variety of factors
that enable the Charity to manage its cash flow and
to draw down from the investment portfolio if and
when necessary. 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 2023/24, gifts in kind reflect the value of office
facilities received free of charge from King’s College
Hospital Foundation Trust.
1.3 Expenditure
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.
