Notes to the accounts 1. ACCOUNTING POLICIES


(a) General information The Association is a private Company limited by guarantee and incorporated in England and Wales (Company number 00878357). The Association’s registered office address is RYA House, Ensign Way, Hamble, Hampshire SO31 4YA.


(b) Accounting basis


The financial statements have been prepared on the historical cost basis, as modified by the revaluation of investment properties, and in accordance with applicable accounting standards (FRS 102). The financial statements are presented in sterling which is also the functional currency of the Association.


(c) Exemption from preparing group accounts


The Association is the sole member of the RYA Foundation, a charitable Company limited by guarantee. In the opinion of the Directors the size and assets of the subsidiary charity mean that the presentation of the combined results and financial position in consolidated financial statements is not material for the purpose of giving a true and fair view. Therefore the RYA has taken the exemption from preparing consolidated financial statements permitted under Section 402 of the Companies Act 2006. These financial statements present the results and position of the RYA as a single entity and not as a group.


(d) Going concern


The Directors have reviewed the Association’s current financial position, including detailed profit and loss modelling and cashflow forecasting for the next 12 months. Directors have used a degree of judgement in forecasting results, and are satisfied that the Association will continue to be able to meet its liabilities as they fall due. As such these financial statements have been prepared on the going concern basis.


(e) Revenue recognition


Revenue is recognised at the fair value of the consideration receivable for the sale of goods and/or services in the ordinary nature of the business. Revenue is shown net of Value Added Tax for goods sold and services provided and is recognised in the accounting period in which the supply is made.


Personal members’ annual subscriptions are received on different dates during the calendar year and the credit to the Statement of Comprehensive Income therefore represents the proportion receivable appropriate to the accounting period.


In previous years, annual club and class affiliation fees were due in January for the calendar year. To better support our network, the Board authorised a grace period from 1st January to 31st March 2021. Future annual subscriptions will now be due on 1st April for that financial year. The credit to the Statement of Comprehensive Income represents the proportion received appropriate to the accounting period.


Grants related to expenditure on tangible fixed assets are deferred fully in the year of receipt and are then credited to the Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grants relate. Grants of a revenue nature are credited to revenue in the period to which they relate. The amounts shown in the Statement of Financial Position in respect of grants consist of the total grants receivable to date, less the amounts so far credited to revenue.


(f) Foreign currencies


Foreign currency transactions are translated into sterling at the spot exchange rate at the date of transactions, or at an average rate where this approximates the actual rate of the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences are recognised in the period in which they arise.


(g) Tangible fixed assets and depreciation


Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses.


Land and buildings include long leasehold premises and specialised property. Land and buildings are stated at cost (or deemed cost for land and buildings held at valuation at the date of transition to FRS 102) less accumulated depreciation and accumulated impairment losses.


Land is not depreciated. Depreciation on other assets is calculated using the straight line method to allocate the depreciable amounts to their residual values over their estimated useful lives using the following rates:


Leasehold buildings Specialised property


Fixtures, fittings, vehicles and equipment (h) Investment properties


2% 2%


7-50%


Investment properties whose fair value can be measured reliably are measured at fair value. The surplus or deficit on revaluation is recognised in the Statement of Comprehensive Income.


(i) Stock


Stock and work in progress have been valued at the lower of cost and net realisable value. Stocks are generally represented by paper and electronic publications. Work in progress represents costs associated with publications not yet available for resale.


For finished goods, cost is calculated on the first in first out method, and for work in progress, cost reflects costs incurred to date.


RYA ANNUAL REPORT AND ACCOUNTS 2021 21


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