Page 42 - CTPA Annual Report 2011

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12. Directors’ Report & Financial Statements
3. Subscription income
Subscription income comprises subscriptions receivable,
exclusive of VAT, in respect of continuing activities.
4. Operating loss
The operating loss is stated after charging:
Depreciation of tangible fixed assets
Auditors’ remuneration
Rent of leasehold property
Office equipment lease rentals
1. Status of company
The company was incorporated on 23 August 1945
and is limited by the guarantee of its members.
The guarantee of each member is restricted to one
pound sterling.
2. Accountiing policies
a) Basis of preparation
The financial statements have been prepared under
the historical cost convention and in accordance with
applicable accounting standards. The financial
statements have been prepared on a going-concern
basis as discussed in the Directors’ report on
pages 35 and 36.
b) Depreciation of tangible fixed assets
The cost of tangible assets is written off on a straight
line basis over their expected useful lives as follows:
Office furniture
- 10 years
Office fixtures
- over the period of the
lease on buildings
Office equipment - 3 to 5 years
The carrying values of tangible fixed assets are reviewed
for impairment if events or changes in circumstances
indicate the carrying value may not be recoverable.
c) Subscription income
Subscription income is recognised when received and is
allocated to the financial year to which the subscription
relates. Subscriptions received in advance are recorded
as deferred income.
d) Foreign currencies
Transactions in foreign currencies for which forward
exchange contracts have been entered into as a hedge
against potential exchange rate movements are
translated at the relevant forward contract rates of
exchange. All other transactions in foreign currencies
are translated into sterling at the rate of exchange
ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign
currencies are retranslated into sterling at the year
end rate of exchange. Exchange differences arising
from this retranslation are taken to the income and
expenditure account.
e) Pension costs
The company provides defined contributions to personal
pensions. Contributions are charged in the income
and expenditure account as they become payable in
accordance with the rules of the scheme.
Notes to the financial statements
31 December 2011