33
WWT Report and Financial Statements 2012/13
1. Accounting policies
(continued)
m) Listed investments are stated at mid-market value.
Unlisted investments are stated at the year-end
valuation, performed by WWT’s investment advisors.
As a result, the Statement of Financial Activities does
not distinguish between the valuation adjustments
relating to sales and those relating to continued
holdings as they are together treated as changes in the
value of the investment portfolio throughout the year.
n) Investment properties are included in the balance
sheet at their open market value in accordance with
Statement of Standard Accounting Practice No 19
and are not depreciated. This treatment is contrary
to the Companies Act 2006 which states that fixed
assets should be depreciated but is, in the opinion of
the Council, necessary in order to give a true and fair
view of the financial position of the charity.
o) Stocks have been valued at the lower of cost and net
realisable value.
p) The attributable profit on long-term contracts is
recognised once their outcome can be assessed with
reasonable certainty. The profit recognised reflects
the proportion of work completed to date on the
project.
Costs associated with long-term contracts are
included in work in progress to the extent that they
cannot be matched with contract work accounted for
as turnover. Long-term contract balances included
in work in progress are stated at cost, after provision
has been made for any foreseeable losses and the
deduction of applicable payments on account. Full
provision is made for losses on all contracts in the
year in which the loss is first foreseen.
q) The group operates a defined benefit pension
scheme, which has now ceased the accrual of future
benefits. The funds are valued every three years by
a professionally qualified independent actuary, the
rates of contribution payable being determined by the
actuary. In the intervening years the actuary reviews
the continuing appropriateness of the rates. Pension
costs are accounted for on the basis of charging
the expected cost of providing pensions over the
period during which the company benefits from the
employees’ services. The effects of variations from
regular cost are spread over the expected average
remaining service lives of members of the scheme.
WWT also contributes to two defined contribution
pension schemes. The assets of the schemes are
held separately from those of WWT in independently
administered funds. The principal defined
contribution scheme is a group stakeholder personal
pension plan invested in an ethical fund.
r) Costs in respect of operating leases, where
substantially all the benefits and risks of ownership
remain with the lessor rather than with WWT, are
charged to the statement of financial activities on a
straight line basis over the lease term.
s) Assets purchased under finance leases, where
substantially all the benefits and risks of ownership
transfer to WWT at the start of the lease, are
capitalised as fixed assets. Obligations under such
agreements are included in creditors. The difference
between the capitalised cost and the total obligation
under the lease represents the finance charges.
These are written off to the statement of financial
activities over the period of the lease.
t) Assets, liabilities, revenues and costs expressed
in foreign currencies are translated into sterling at
rates of exchange ruling on the date on which the
transactions occur, except for:
i.
monetary assets and liabilities which are translated at
the rate ruling at the balance sheet date (other than
those in (ii) below); and
ii.
transactions to be settled at a contracted rate and
trading transactions covered by a related or matching
forward contract which are translated at those
contracted rates.
u) No value is ascribed to the wildfowl collections
maintained at the centres as the Council considers
that to do so would not be consistent with the objects
of WWT.
