TRUSTEES ANNUAL REPORT AND FINANCIAL STATEMENT FOR SHARED INTEREST FOUNDATION 2024/25 - Report - Page 13
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(1.1) Basis of preparation of financial
statements
The financial statements have been prepared in accordance
with Accounting and Reporting by Charities: Statement of
Recommended Practice applicable to charities preparing
their financial statements in accordance with the Financial
Reporting Standard applicable in the UK and Republic of
Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP
(FRS 102)), the Financial Reporting Standard applicable in
the UK and Republic of Ireland (FRS 102) and the Companies
Act 2006. The financial statements are prepared in sterling
which is the functional currency of the charity and rounded
to the nearest £1. The financial statements are prepared on a
going concern basis as the charity has sufficient funding and
activity to take it through 2023.
Shared Interest Foundation meets the definition of a public
benefit entity under FRS 102. Assets and liabilities are initially
recognised at historical cost or transaction value unless
otherwise stated in the relevant accounting policy.
(1.2) Company status
Charitable expenditure includes those costs incurred by the
Charity in the delivery of its activities and services for its
beneficiaries. It includes costs that can be allocated directly
to such activities and those costs of an indirect nature
necessary to support them.
Governance costs include those costs associated with
meeting the constitutional and statutory requirements of the
Charity and include the audit fees and costs linked to the
strategic management of the Charity.
(1.6) Interest receivable
Interest on funds held on deposit is included when receivable
and the amount can be measured reliably by the company;
this is normally upon notification of the interest paid or
payable by the bank.
(1.7) Debtors
Trade and other debtors are recognised at the settlement
amount after any trade discount offered. Prepayments are
valued at the amount repaid net of any trade discounts due.
(1.8) Cash at bank and in hand
The company is limited by guarantee and has no share
capital. In the event of a winding up every member
undertakes to contribute such amount as may be required
not exceeding the total of £1. There was one member at 30
September 2022, Shared Interest Society Ltd.
Cash at bank and in hand includes cash and short-term highly
liquid investments with a short maturity of three months or
less from the date of acquisition or opening of the deposit or
similar account.
(1.3) Fund accounting
Creditors and provisions are recognised where the company
has a present obligation resulting from a past event that will
probably result in the transfer of funds to a third party and
the amount due to settle the obligation can be measured
or estimated reliably. Creditors and provisions are normally
recognised at their settlement amount after allowing for any
trade discounts due.
Restricted funds are funds which are to be used in
accordance with specific restrictions imposed by donors
or which have been raised by the company for particular
purposes. The costs of raising and administering such funds
are charged against the specific fund. The aim and use of
each restricted fund is set out in the notes to the financial
statements. Investment income, gains and losses are
allocated to the appropriate fund.
(1.4) Income
All income is recognised once the company has entitlement
to the income, it is probable that the income will be received
and the amount of income receivable can be measured
reliably.
For legacies, entitlement is taken as the earlier of the date on
which either: the company is aware that probate has been
granted, the estate has been finalised and notification has
been made by the executor(s) to the Trust that a distribution
will be made, or when a distribution is received from the
estate. Receipt of a legacy, in whole or in part, is only
considered probable when the amount can be measured
reliably and the company has been notified of the executor’s
intention to make a distribution. Where legacies have been
notified to the company, or the company is aware of the
granting of probate, and the criteria for income recognition
have not been met, then the legacy is treated as a contingent
asset and disclosed if material.
(1.5) Expenditure
Expenditure is recognised when there is a legal or
constructive obligation to make payment to a third party, it is
probable that settlement will be required and the amount of
the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis and
include attributable VAT which cannot be recovered. All
expenses including support costs and governance costs are
allocated to the applicable expenditure headings.
(1.9) Creditors and provisions
(1.10) Financial instruments
The company only has financial assets and financial liabilities
of a kind that qualify as basic financial instruments. Basic
financial instruments are initially recognised at transaction
value and subsequently measured at their settlement value
with the exception of bank loans which are subsequently
measured at amortised cost using the effective interest
method.
(1.11) Cash flow statement
The Company has taken advantage of the exemption in FRS
102 from the requirement to prepare a cash flow statement
on the grounds that it is a small company.
(1.12) Foreign currency transactions
Monetary assets and liabilities denominated in foreign
currencies are stated in the balance sheet at the equivalent
value in sterling at the exchange rate prevailing at the balance
sheet date. Transactions during the year denominated in
foreign currencies are stated at their equivalent value in
sterling at the exchange rate prevailing at the date of the
transaction.
(1.13) Pensions
Employees of the Foundation are entitled to membership of
the Shared Interest Group Personal Pension Plan. This is a
defined contribution scheme with 9% of salary payable by the
Charity and charged to the Income and Expenditure Account
in the year relating to the salary cost.
Shared Interest Foundation - Trustees’ Report and Financial Statements for the year ended 30 September 2022
page 13
