KCHC-AR-2023 Final Signed - Flipbook - Page 59
Notes to the financial statements
1.10. Financial instruments
1.12. Critical accounting estimates
and areas of judgement
The Charity has elected to apply the provisions of Section
In preparing financial statements, it is necessary to
11 ‘Basic Financial Instruments’ and Section 12 ‘Other
make certain judgements, estimates and assumptions
Financial Instruments Issues’ of FRS 102 to all of its
that affect the amounts recognised in the financial
financial instruments.
statements. The following judgements and estimates
are considered by the Trustees to have most significant
Financial instruments are recognised in the company's
balance sheet when the Charity becomes party to the
effect on amounts recognised in the financial
contractual provisions of the instrument. Financial assets statements:
and liabilities are offset, with the net amounts presented
in the financial statements, when there is a legally
● The basis on which legacies are recognised in
enforceable right to set off the recognised amounts and
the year (recognition takes place when receipt
there is an intention to settle on a net basis or to realise
is probable);
the asset and settle the liability simultaneously.
● The point at which grants payable from designated
funds are recognised as constructive obligations;
With the exceptions of prepayments and deferred
● The allocation of grant commitments between
income, all other debtor and creditor balances together
amounts falling due within one year and falling due
with investments are considered to be basic financial
in more than one year; and
instruments under FRS 102.
● Estimating the value of gifts in kind.
1.11. Fund accounting
Estimates used in the financial statements, particularly
with respect to the value of listed investments, where
Where there is a legal restriction on the purpose to which values are subject to global market forces, are subject
a fund may be put, the fund is classified either as:
to a greater degree of uncertainty and volatility.
• a restricted fund or
• an endowment fund.
In the view of the Trustees in applying the accounting
policies adopted, no other judgements were required
Restricted funds are those where the donor has provided that have a significant effect on the amounts
for the donation to be spent in furtherance of a specified recognised in the financial statements nor do any
charitable purpose.
estimates or assumptions made carry a significant risk
of material adjustment in the next financial year.
Endowment funds arise when the donor has expressly
provided that the gift is to be invested and only the
1.13. Linked charities
income of the fund may be spent.
Each of the following charities is registered separately
Unrestricted funds represent those monies which are
with the Charity Commission under the umbrella
available for application towards achieving any charitable registration for the main Charity:
purpose that falls within the Charity's charitable
● Cancer Treatment and Research Special Trust
objectives.
● King’s College Hospital Patient’s Trust
Designated funds comprise unrestricted funds that
● King’s College Hospital Fund
have been set aside by the Trustees and designated for
● David E Hughes Hospital Trust Fund
particular purposes.
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 are
consolidated within these financial statements.
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