KCHC Annual Review 2023-24 WEB Singles - Flipbook - Page 50
Notes to the financial statements
1.10. Financial instruments
The Charity has elected to apply the provisions of
Section 11 ‘Basic Financial Instruments’ and Section 12
‘Other Financial Instruments Issues’ of FRS 102 to all of
its financial instruments.
Financial instruments are recognised in the Charity’s
balance sheet when the Charity becomes party to the
contractual provisions of the instrument. Financial
assets and liabilities are 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 to settle on a net
basis or to realise the asset and settle the liability
simultaneously.
With the exceptions of prepayments and deferred
income, all other debtor and creditor balances together
with investments are considered to be basic financial
instruments under FRS 102.
1.11. Fund accounting
Where there is a legal restriction on the purpose to
which a fund may be put, the fund is classified either as:
• A restricted fund; or
• An endowment fund.
Restricted funds are those where the donor has
provided for the donation to be spent in furtherance of
a specified charitable purpose.
that affect the amounts recognised in the financial
statements. The following judgements and estimates
are considered by the Trustees to have most significant
effect on amounts recognised in the financial
statements:
• The basis on which legacies are recognised in
the year (recognition takes place when receipt is
probable);
• The point at which grants payable from designated
funds are recognised as constructive obligations;
• The allocation of grant commitments between
amounts falling due within one year and falling due
in more than one year; and
• Estimating the value of gifts in kind.
Estimates used in the financial statements,
particularly with respect to the value of listed
investments, where values are subject to global
market forces, are subject to a greater degree of
uncertainty and volatility.
In the view of the Trustees in applying the accounting
policies adopted, no other judgements were required
that have a significant effect on the amounts
recognised in the financial statements nor do any
estimates or assumptions made carry a significant risk
of material adjustment in the next financial year.
1.13. Linked charities
Endowment funds arise when the donor has expressly
provided that the gift is to be invested and only the
income of the fund may be spent.
Unrestricted funds represent those monies which
are available for application towards achieving any
charitable purpose that falls within the Charity’s
charitable objectives.
• Cancer Treatment and Research Special Trust;
• King’s College Hospital Patient’s Trust;
Designated funds comprise unrestricted funds that
have been set aside by the Trustees and designated for
particular purposes.
• King’s College Hospital Fund; and
1.12. Critical accounting estimates and
areas of judgement
Prior to 1 April 2016, the Charity’s operations were
carried out through a registered charity of the same
name (charity number 230729) and the financial
information relating to the predecessor charity is
consolidated within these financial statements.
In preparing financial statements, it is necessary to
make certain judgements, estimates and assumptions
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Each of the following charities is registered separately
with the Charity Commission under the umbrella
registration for the main Charity:
S U P P O R T K I N G S .O R G .U K
• David E Hughes Hospital Trust Fund.
