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(18) ROYAL COLLEGE OF PAEDIATRICS AND CHILD HEALTH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2006 (continued) 1.

ACCOUNTING POLICIES (continued) 1.4 Incoming Resources (continued) Members subscriptions are due on 1 January each year for existing members and on date of admission for new members; income is accounted for on an accruals basis over the calendar year to which they relate. Investment income is recognised when due except for dividends which are accounted for on receipt. No amounts are included in the financial statements for services donated by volunteers. 1.5 Resources Expended All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources. Note 3 to these financial statements details the method of allocation of such costs. Costs of generating voluntary income are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Governance costs include the costs associated with the meetings of the Council, Executive Committee and Finance Committee and those incurred in connection with the statutory external audit. 1.6 Tangible Fixed Assets Depreciation Tangible Fixed Assets are stated at cost or valuation to the Royal College of Paediatrics and Child Health (or the original cost to the British Paediatric Association in connection with assets transferred on 23 August 1996) less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Office Equipment Fixtures and Fittings Database Hardware and Software Other Computer Hardware and Software

Five years straight line basis Ten years straight line basis Five years straight line basis Three years straight line basis

No depreciation will be charged on the freehold property as it is intended that maintenance will be carried out to maintain it at a level which is at least commensurate with its original cost. Equipment costing less than £3,500 (including VAT) is charged to expenditure and is not capitalised. 1.7 Fixed Asset Investments Fixed asset investments are included in the balance sheet at their market value at the balance sheet date. It is the College’s policy to keep valuations up-to-date such that when investments are sold there is no gain or loss arising relating to previous years. As a result the SOFA does not distinguish between the valuation adjustments relating to sales and those related to continued holdings as they are together treated as changes in the investment portfolio throughout the year. 1.8 Stock of Publications and Merchandise Stock of publications and merchandise is stated at the lower of cost and realisable value, on a first in first out basis, after making due allowance for obsolete and slow moving stocks. 1.9 Pensions The College operates a scheme to contribute a defined amount to individual employees’ pension schemes and the pension charge represents the amounts payable by the College to the various schemes in respect of the year.

British Paediatric DR&Acs31.12  

PRINCIPAL OFFICE 50 Hallam Street, London, W1W 6DE Telephone: 020 7307 5600 Website: www.rcpch.ac.uk INVESTMENT Lazard Asset Management Lim...

British Paediatric DR&Acs31.12  

PRINCIPAL OFFICE 50 Hallam Street, London, W1W 6DE Telephone: 020 7307 5600 Website: www.rcpch.ac.uk INVESTMENT Lazard Asset Management Lim...

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