YMCA TRINITY GROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1. ACCOUNTING POLICIES (continued) 1.4 Significant judgements and estimates Significant management judgements
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:
Categorisation of housing properties
The group has undertaken a detailed review of the intended use of all housing properties. In determining the intended use, the group has considered if the asset is held for social benefit or to earn commercial rentals. On this basis, certain properties held by the group have been categorised as investment properties.
Estimation uncertainty
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities and expenses is provided below. Actual results may be substantially different.
Useful lives of depreciable assets
Tangible fixed assets are depreciated over their useful lives taking into account estimated residual values, where appropriate. Management reviews its estimate of the useful lives of depreciable assets at each reporting date based on the expected utility of the assets. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.
Valuation of investment properties
The group carries its investment properties at fair value, with changes in fair value being recognised in the statement of comprehensive income.
1.5 Turnover
Turnover represents rental income and service charges receivable, programme activities income, donations and revenue grants receivable from local authorities, fees receivable for childcare services, income from commercial operations in the trading subsidiaries and other operating income. Rental income is recognised when the property is available to let, net of voids. Service charge income and costs are recognised on an accruals basis. Supporting People income is recognised as it falls due under the contractual arrangement with the administering authorities. All charitable income recognised by the group is credited to the income and expenditure account. If specific restrictions are placed on its use by the donors the relevant income is transferred to restricted reserves.
1.6 Gift Aid income
Donations received under the Gift Aid scheme to the parent association from its subsidiary are recognised as turnover upon receipt as it relates to the principal activities of the association and is eliminated on consolidation.
1.7 Housing properties
Housing properties are those held for the provision of social housing or to otherwise provide social benefit. Housing properties are stated at cost less accumulated depreciation and impairment losses. The cost of properties is their purchase price together with incidental costs of acquisitions. Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in an increase in net rental income over the lives of the properties, thereby enhancing the economic benefits of the assets, are capitalised as improvements.
YMCA Trinity Group 6
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