Notes to the accounts 1. Accounting policies
(a) General information The Royal Yachting Association (“the Association”) is a private limited company limited by guarantee and incorporated in England and Wales (co. number 00878357). The Association’s registered office address is RYA House, Ensign Way, Hamble, Hants, SO31 4YA.
(b) Accounting basis
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of long leasehold premises and specialised property, 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. These financial statements present the results and position of the Association as a single entity and not as the group.
(d) Going concern
The directors have reviewed the Association’s current financial position and future cash flow forecasts and are satisfied that the Association will continue to be able to meet its liabilities as they fall due. As such, the Association’s financial statements have been prepared on the going concern basis. The directors have reviewed the Association’s current financial position, including detailed profit and loss modelling and cashflow forecasting for the next 12 months. The directors 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) Income recognition
Income 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. Income 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.
Annual personal members’ subscriptions are received on different dates during the year and the credit to the income and expenditure account represents the proportion receivable appropriate to the accounting period. Affiliated club subscriptions are due in April for the following year which ends on the 31st March and 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 income and expenditure account at the same rate as the depreciation on the assets to which the grants relate. Grants of a revenue nature are credited to income in the period to which they relate. The amounts shown in the
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balance sheet in respect of grants consist of the total grants receivable to date, less the amounts so far credited to income.
(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 rate 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. All other tangible fixed assets are stated at cost 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 amount 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
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.
(j) Financial instruments – assets and liabilities
The Association has applied sections 11 and 12 of FRS 102 to account for all of its financial statements. The Association employs only basis financial instruments in the running of its day to day business, being the following items:
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank
2% 2%
7 – 50%
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