All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income. Income consists of fees from library activities, fundraising donations, fees for group activities or room hire and grant income which is included in full in the SOFA when received. Investment income by way of interest on cash deposits is included when receivable.

All resources expended are recognised once there is a legal or constructive obligation to that expenditure, it is probable that settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs in that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent  with the use of resources, with depreciation allocated on the portion of assets in use. 

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.