Jockey Club Racecourses Limited Notes to the financial statements Year ended 31 December 2021
1.
Accounting policies (continued) Going concern (continued)
The directors have reasonable expectations that the company is well placed to manage business risks and continue in operational existence for the foreseeable future (which accounting standards require to be at least a year from the date of this report) and have not identified any material uncertainties to the company's ability to do so. The company therefore continues to adopt the going concern basis of accounting in preparing the annual financial statements. Turnover Turnover represents income receivable (excluding VAT) on performance of the principal activities of the company of operating and managing racecourses, their facilities and broadcasting rights and is recognised in the period to which it relates. Turnover is recognised only when it is probable that the company will receive the previously agreed upon payment and that this amount can be measured reliably. Turnover arises wholly within
the United Kingdom. Tangible fixed assets
Tangible fixed assets are stated at historical cost less accumulated depreciation and provision for impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised through fixed asset disposals. Repairs and maintenance are charged to the income statement during the period in which they are incurred. Depreciation Depreciation is not provided on freehold land. On other assets it is provided on cost or revalued amounts in equal annual instalments over the estimated lives of the assets as follows: Freehold buildings twenty to fifty years Long/short leasehold buildings over period of lease All-weather track surface ten years Plant, machinery and equipment four to ten years Groundworks, including course drainage and car parks ten to thirty years Fixtures, fittings and computer equipment three to ten years Vehicles four or five years Assets in the course of construction are not depreciated until they are brought into use. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and, where material, are recognised within 'other operating income' in the income statement. Impairment of fixed assets Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit (CGU)) to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
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NT1/99
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