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WWT Report and Financial Statements 2012/13
1. Accounting policies
a) The financial statements have been prepared
under the historical cost convention, as modified
by the revaluation of certain fixed assets, and
in accordance with applicable accounting
standards and the Companies Act 2006. They
follow the recommendations of the Statement of
Recommended Practice: ‘Accounting and Reporting
by Charities’ (SORP 2005) published in March 2005.
These financial statements consolidate the results
of the charitable company and its wholly owned
subsidiaries on a line by line basis. A separate
statement of financial activities, or income and
expenditure account, for the charitable company
itself is not presented because the charitable
company has taken advantage of the exemptions
afforded by section 408 of the Companies Act 2006
and SORP 2005.
Comparative information relates to the year ending 31
March 2012.
b) The permanent endowment fund represents
donations made where the donor requested that the
capital be invested and the income either added to
the capital or used to cover expenditure, depending
on the conditions of the endowment.
c) Restricted funds are funds for which the donor has
specifically restricted the purpose for which they can
be used. The amounts in the funds represent the
monies still remaining for future expenditure, or funds
represented by assets purchased partly or fully from
restricted funds.
d) Designated funds are funds for which Council has
specifically designated the purpose for which they
can be applied. The amounts in the funds represent
the monies still remaining for future expenditure.
e) General funds represent the unrestricted net current
assets of the group.
f) All income is allocated to the general fund unless
otherwise restricted by the donor or specifically
designated by the Council.
g) Annual and Life Fellow subscriptions are credited to
income in the year in which they are received.
h) All incoming resources are included in the
statement of financial activities when the charity
is legally entitled to the income and the amount
Notes to the Financial Statements
can be quantified with reasonable accuracy. For
pecuniary legacies, income is recognised when
the charity receives notification of the amount. For
residual legacies, entitlement is the earlier of the
charity receiving final accounts or the legacy being
received. Gifts in kind donated for use by the
charity are included at valuation and recognised
as income when they are utilised. Gifts donated
for resale are included as income when they are
sold. Donated facilities are included at the value to
the charity where this can be quantified and a third
party is bearing the cost.
i) No value is ascribed to the unpaid contributions of
time and skills provided by volunteers due to the
difficulty in attributing an economic value.
j) All expenditure is accounted for on an accruals
basis and has been classified under headings that
aggregate all costs related to the category. Where
costs cannot be directly attributed to particular
headings they have been allocated on a basis
consistent with the use of the resources.
Costs of generating voluntary income include the
costs incurred as a result of raising donations,
developing legacy income, applying for grants and
publicising and fulfilling the bird adoption scheme.
Governance costs are those incurred in connection
with constitutional and statutory requirements,
including audit and legal fees.
k) Depreciation is provided with the intention of writing
off the costs of tangible fixed assets over their useful
lives. The provision is calculated using the straight
line method over the following periods:
Computer equipment
5 years
Motor vehicles
5 years
Plant and machinery
5-10 years
Freehold buildings
20-50 years
Leasehold buildings and equipment are depreciated
over the life of the lease, subject to a maximum
of 50 years. Any land held under freehold is not
depreciated.
l) All new fixed assets acquired by way of gift are
included in the accounts at valuation of fair value
as determined by WWT. Assets purchased using
restricted funds remain restricted throughout their
useful lives.
