CTPA Annual Report 2013 - page 42

Notes to the Financial Statements 31 December 2013
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. Accounting 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 page 38.
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. Office equipment
includes costs relating to computer equipment and website
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.
F. Operating losses
Rental costs under operating leases are charged to the
profit and loss as they fall due.
3. Subscription income
Subscription income comprises subscriptions receivable,
exclusive of VAT, in respect of continuing activities.
4. Operating profit
The operating profit is stated
after charging:
Depreciation of tangible fixed assets
Auditors’ remuneration
Rent of leasehold property
Office equipment lease rentals
Directors’ Report and Financial Statements
1...,32,33,34,35,36,37,38,39,40,41 43,44,45,46,47,48
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