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| 2. |
Summary of Significant Accounting Policies |
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The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. |
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Statement of compliance |
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The financial statements of the company for the financial year ended 31 December 2024 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006. |
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Basis of preparation |
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The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. |
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Income |
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When grants or donations are received for specific purposes, the related income is recognized only as the associated expenditure is incurred. |
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Going concern |
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The financial statements have been prepared on a going concern basis. The Director is of the opinion that the Company will be able to meet its obligations to creditors as they fall due for a period of at least 12 months from the date of approval of these financial statements. The Company recorded net liability of £2,619 at 31 December 2024 (FY 2023-£ 7,335). These financial statements do not include any adjustments that would be necessary should the going concern assumption not apply. |
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Deferred Income |
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Funds received in advance of the related expenditure are recorded a Deferred Income on the balance sheet. These amounts remain deferred until the relevant costs are incurred, at which point the corresponding income is transferred to the income statement. |
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Tangible assets and depreciation |
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Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows: |
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Fixtures, fittings and equipment |
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33% Straight line |
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The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
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Trade and other debtors |
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Trade debtors are amounts due from donors or service recipients for services delivered in the ordinary course of operations. They are initially recognized at the transaction price and subsequently measured at amortized cost, less any provision for impairment. A provision for impairment is established when there is objective evidence that the organisation will not be able to collect all amounts due under the original terms. |
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Cash and cash equivalents |
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Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
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Trade and other creditors |
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Trade creditors are obligations to pay for services that have been acquired in the ordinary course of operations from suppliers. They are initially recognised at fair value and subsequently measured at amortized cost. Trade creditors are classified as current liabilities if payment is due within one year. |
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Employee benefits |
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The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. |
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Taxation and deferred taxation |
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Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable income and its results as stated in the financial statements. Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. |
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Foreign currencies |
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Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement. |