Notes to the Accounts

1. Accounting policies Accounting convention These accounts have been prepared on the going concern basis and under the historical cost convention as modified by the revaluation of investment properties and listed investments. They comply with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ as revised in 2005 (‘the SORP’), together with the reporting requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and applicable accounting standards in the United Kingdom.

Basis of consolidation The consolidated accounts incorporate the results of Cancer Research UK (‘the Charity’) and its subsidiary undertakings on a line by line basis, as well as its share of the results of its joint venture and associates. The consolidated entity is referred to as ‘the Group’. No separate company Statement of Financial Activities (SOFA) has been prepared for the Charity as permitted by section 408 of the Companies Act 2006 and paragraph 397 of the SORP.

Joint venture and associated undertakings The Group’s share of its joint venture is included in the Group’s SOFA and balance sheet under the gross equity method of accounting. The Group’s share of its associated undertakings is included in the Group SOFA and balance sheet using the net equity method.

Incoming resources Incoming resources are included in the SOFA when the Group is entitled to the income and it can be quantified with reasonable certainty. Donations in kind, other than items donated for sale, are recognised at their value to the Group when they are received. No amounts are included for services donated by volunteers. Incoming resources comprise:

Voluntary income Legacies

Pecuniary legacies are recognised as receivable once probate has been granted and notification has been received.

Residuary legacies are recognised as receivable once probate has been granted, provided that sufficient information has been received to enable valuation of the Charity’s entitlement. Amounts receivable are included at 90% of their valuation to reflect the Group’s experience of the uncertainty inherent in the administration of estates. Residuary legacies are subject to further reduction to reflect the impact on the valuation of unrealised estate assets of subsequent adverse movements in property and investment markets.

Reversionary interests involving a life tenant are not recognised due to the intrinsic uncertainties in valuing them.

Direct giving Events

Volunteer fundraising High value relationships Gift Aid Cash donations and regular gifts are accounted for as received.

Voluntary income arising from major events, principally sponsorship, is recognised in the period in which the event takes place.

Income from groups of friends and local committees is accounted for when funds are received by those groups and committees.

Major gifts and income from partnerships are recognised when received. Gifts in kind such as donated services, facilities and property are included at market value and the equivalent amount is included in ‘Costs of charitable activities’ or ‘Support costs’ depending on the type of gift.

Gift Aid is included based on amounts recoverable at the accounting date.

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