KCHC Annual Report and Accounts 2024-25 Spreads - Flipbook - Page 50
Notes to the financial statements
is a legally enforceable right to set off the recognised
amounts and there is an intention to settle on a net
basis or to realise the asset and settle the liability
simultaneously.
• The allocation of grant commitments between
amounts falling due within one year and falling due
in more than one year; and
• Estimating the value of gifts in kind.
With the exceptions of prepayments and deferred
income, all other debtor and creditor balances together
with investments are considered to be basic financial
instruments under FRS 102.
Estimates used in the financial statements,
particularly with respect to the value of listed
investments, where values are subject to global
market forces, are subject to a greater degree of
uncertainty and volatility.
1.11. Fund accounting
Where there is a legal restriction on the purpose to
which a fund may be put, the fund is classified either as:
• A restricted fund; or
In the view of the Trustees in applying the accounting
policies adopted, no other judgements were required
that have a significant effect on the amounts
recognised in the financial statements nor do any
estimates or assumptions made carry a significant risk
of material adjustment in the next financial year.
• An endowment fund.
Restricted funds are those where the donor has
provided for the donation to be spent in furtherance of
a specified charitable purpose.
Endowment funds arise when the donor has expressly
provided that the gift is to be invested and only the
income of the fund may be spent.
Unrestricted funds represent those monies which
are available for application towards achieving any
charitable purpose that falls within the Charity’s
charitable objectives.
1.13. Linked charities
Each of the following charities is registered separately
with the Charity Commission under the umbrella
registration for the main Charity:
• Cancer Treatment and Research Special Trust
• King’s College Hospital Patient’s Trust
• King’s College Hospital Fund
• The David Hughes Special Trust Fund
Designated funds comprise unrestricted funds that
have been set aside by the Trustees and designated for
particular purposes.
1.12. Critical accounting estimates and
areas of judgement
In preparing financial statements, it is necessary to
make certain judgements, estimates and assumptions
that affect the amounts recognised in the financial
statements. The following judgements and estimates
are considered by the Trustees to have most significant
effect on amounts recognised in the financial
statements:
• The basis on which legacies are recognised in the year
(recognition takes place when receipt is probable);
• The point at which grants payable from designated
funds are recognised as constructive obligations;
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S U P P O R T K I N G S .O R G .U K
Prior to Apr 1 2016, the Charity’s operations were
carried out through a registered charity of the same
name (charity number 230729), and the financial
information relating to the predecessor charity is
consolidated within these financial statements.
