THE CITY OF WINCHESTER TRUST LIMITED
REPORT OF THE COUNCIL AND FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 MARCH 2004

1 ACCOUNTING POLICIES

The accounting policies adopted by the Trust are as follows:-

1. Basis of Accounting The financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention as modified by the revaluation of investments and the Statement of Recommended Practice (SORP) 2000 for accounting by charities
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2. Depreciation Depreciation is calculated to write down the cost of fixed assets to their estimated residual value over their expected useful lives.
   Leasehold property is amortised in equal annual instalments over the life of the lease. All other fixed assets are depreciated on a reducing balance basis at 25% per annum
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3. Stocks. Stocks are valued at the lower of cost and net realisable value
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4. Taxation. No provision for taxation has been made
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5. Investments. Investments are stated at market value in accordance with the SORP
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6. Donations and Legacies. These are accounted for when received
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7. Expenditure. Expenditure is analysed into such categories as reasonably to enable the user to gain an apprecianon of the charity’s expenditure during the year
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8. Grants. Subject to the following, grants are credited to income in the year they are receivable. Grants received for specific purposes are treated as restricted funds. Grants are not recognised as receivable until all of the conditions for receipt have been complied with Grants in respect of capital expenditure are written off against the cost of the asset acquired
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9. Funds. Restricted funds are funds subject to specific conditions within the objects of the charity.

Unrestricted funds are funds where no restrictions are placed on the use by the charity upon either the capital or the income. The unrestricted funds are divided between:

• Designated funds:
  • Tangible fixed assets fund - representing funds invested in the Trust’s leasehold property and other fixed assets;
  • Investments fund - representing investments arising from a legacy, which the Council’s policy is to retain for the longer term in order to provide income to support the Trust's projects and activities.
• Undesignated fund:
  • Revenue fund - to provide the Trust's working capital.