13.3 Notes to the Financial Statements 31 December 2015
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. The address
of the registered office is Josaron House, 5-7 John Princes
Street, London W1G 0JN.
2. Accounting policies
A. Basis of preparation
The financial statements have been prepared in accordance
with applicable United Kingdom accounting standards,
including early adoption of Financial Reporting Standard
102 (‘FRS 102’) Section 1A Small Entities, and with the
Companies Act 2006. The financial statements have been
prepared under the historical cost convention as modified
by the revaluation of financial instruments at fair value
through profit and loss.
This is the first year in which the financial statements have
been prepared under FRS 102. Refer to note 14 for an
explanation of the transition.
The financial statements have been prepared on a
going-concern basis as discussed in the Directors’
Report on page
42
.
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 development.
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.
G. Forward rate currency contracts
CTPA enters forward rate currency contracts to manage its
exposure to fluctuations in exchange rates throughout the
year. These contracts are recognised at fair value with gains
or losses recognised in the Income and Expenditure Account.
3. Subscription income
Subscription income comprises subscriptions receivable,
exclusive of VAT, in respect of continuing activities.
4. Operating profit
2015
2014
£
£
The operating profit is stated
after charging:
Depreciation of tangible fixed assets
118,193
130,795
Auditors’ remuneration
11,800
9,730
Rent of leasehold property
99,979
88,306
Office equipment lease rentals
6,139
6,206
5. Directors’ emoluments
None of the Board members received any remuneration for
their services to the company during the year.
6. Staff costs
2015
2014
£
£
Wages and salaries
617,264
592,532
Social security costs
74,792
72,801
Other pension costs
65,050
67,555
757,106
732,888
The average monthly number of
employees during the year was
11
10
7. Other income
2015
2014
£
£
Bank and other interest receivable
5,785
5,211
13
Directors’ Report and Financial Statements
46
