3 Accounting policies
Basis of preparation
The financial statements
have been prepared in accordance with Charities: Statement of Recommended Practice (applicable to Charities preparing their accounts in accordance with the Reporting Financial Standard applicable in the UK and the Republic of Ireland (FRS 102) issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant policy notes. Public Benefit
St Paul's Church Worcester meets the definition of a public benefit entity under FRS 102.
Going concern
The Directors consider that there are no material uncertainties about the Charity's ability to continue as a going concern.
Income Recognition Policies
Items of income are recognised and included in the accounts when all the following criteria are met: * The charity has entitlement to the funds; * any performande conditions attached to the items of income have been met or are fully within the control of the charity; * there is sufficient certainty that receipt of the income is considered probable; and * the amount can be measured reliablyIncome received in advance of a specific performance or provision of other specified service is deferred until the criteria for income recognition are met. Tangible assets
Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on the reducing balance basis.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
| Fixtures, fittings and equipment | 25% reducing balance |
Fund Accounting
Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are unrestricted funds of the Charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for the particular areas of the Charity's work or for specific projects being undertaken by the Charity.
Expenditure and Irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Other Balance Sheet Items
Debtors Trade and other debtors are recognised at the settlement amounts due after any trade discount offered. Prepayments are valued at the amount prepaid after taking into account of any trade discounts due.Cash at Bank and in Hand Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of aquisition or opening of the deposit or similar account.Creditors and Provisions Creditors and provisions are recognised where the Charity 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. Interest Receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.