THE LEAGUE OF REMEMBRANCE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2014
1 Principal accounting policies
These financial statements have been prepared under the historical cost convention as modified by the revaluation of
investments and in accordance with the Statement of Recommended Practice - Accounting and Reporting by Charities (SORP
2005) issued in March 2005, with the Financial Reporting Standard for Smaller Entities (effective April 2008) and the Companies
Act 2006. The principal accounting policies are set out below.
Incoming resources
Donation and investment income is accounted for on a receivables basis. Income tax recoverable on gift aid is accounted for on
an accruals basis.
Resources expended
Cost of charitable expenditure includes those expenses incuned directly by the Remembrance Workers and costs from
fundraising activities. The remaining expenditure is classified under governance of the charity and includes costs incurred for
the maintenance of the charity.
Resources expended are recognised in the period in which the obligation arises. Resources expended include attributable VAT
which cannot be recovered.
Tangible fixed assets
The cost of tangible fixed assets is their purchase cost, together with any incidental expenses of acquisition. The cost of
furniture, fittings and other office contents is charged to income and expenditure in the year of acquisition, where such costs
per item are (ess than £500.
Depreciation is calculated so as to write off the cost or valuation of tangible fixed assets, less their estimated residual values, on
a straight line basis over the expected useful economic lives of the assets concerned. The annual rate used for this purpose is
20% on computer equipment
Fixed asset investments
Fixed asset investments are recorded at market value at the balance sheet date. Changes in value during the year, and profits
and losses on sales, are reported in the Statement of Financial Activities.
Fund structure
The Council of the League acts as Trustee of the League of Remembrance (1914-45) Endowment Trust Fund, which is a
restricted fund which must be preserved for the purpose of endowment. All contributions to the Fund are invested in the name
of the League, and the investments must be kept separate from the other funds of the League. The income from these
reserves is expendable.
The remaining reserves relate to an unrestricted operating fund, generating income for the charity to use in accordance with its
objectives.
Operating lease commitments
Rentals applicable to operating leases are charged to the Statement of Financial Activity over the period in which the cost is
incurred.
2 Donations
2014
2013
£
£
Donations
42,255
22,618
42,255
22,618
13
