Financial Statements - International Planned Parenthood Federation

IPPF Financial Statements 2009 27
Notes to the financial statements
1 Accounting policies
Basis of accounting
These financial statements have
been prepared under the historical
cost convention, as modified for
the revaluation of certain investments,
and in accordance with applicable
United Kingdom accounting standards,
applicable United Kingdom law and
the Statement of Recommended
Practice (‘SORP’), Accounting and
Reporting by Charities (revised 2005),
issued by the Charity Commission.
Basis of preparation
IPPF exists as an entity under the
provisions of the IPPF Act. There are
six regions within the Federation and
the accounts of these are combined
to form the IPPF. All of the Regional
Offices act as branches of IPPF and
therefore fall under the term ‘branches’
in accordance with FRS 2 ‘Accounting
for Subsidiary Undertakings’ and the
Charities SORP.
IPPF Arab World Regional Office
(Tunis, Tunisia), IPPF East and Southeast
Asia and Oceania Regional Office
(Kuala Lumpur, Malaysia) and IPPF
South Asia Regional Office (New Delhi,
India) are not separate entities and
their results are included in those
of the Central Office (London, UK).
IPPF Africa Regional Office (Nairobi,
Kenya) and IPPF Europe Regional Office
(Brussels, Belgium) are separate legal
entities in their respective regions, and
are treated as branches of the Central
Office in London. Their results are
included with those of the charity.
The IPPF Western Hemisphere Regional
Office (New York, US) – IPPF Western
Hemisphere Inc. is a separate company
incorporated in the State of New York,
USA, as a membership corporation
with not-for-profit status. All its results
are combined with those of the charity,
on the basis that its members are also
members of IPPF, and are in a Regional
Office pursuing the same objectives
and policies as the rest of IPPF. IPPF
WHR is not a trading subsidiary, and
therefore its results have not been
separately disclosed. In addition to the
regional office, there are two other
entities within this region – The IPPF
WHR Fund and IPPF Worldwide Inc.
The IPPF WHR Fund is a separate entity
used for investing significant bequests,
the results of which are reported
within these accounts. This entity is
also considered to be a branch of IPPF.
IPPF Worldwide Inc (established
in 2006) is a separately registered
not-for-profit organization. This is
established for the purpose of receiving
funding from United States of America
based organizations with income
received being reflected within these
financial statements. This entity is also
considered to be a branch of IPPF.
IPPF has a trading subsidiary,
International Contraceptive and SRH
Marketing Limited (trading as ICON).
This primarily engages in commodity
supply services and social marketing
of contraceptives in conjunction with
Member Associations. Its results for the
trading period to 31 December 2009
have been consolidated in accordance
with FRS 2 ‘Accounting for Subsidiary
Undertakings’ on a line by line basis.
These financial statements present the
consolidated statement of financial
activities only, and both a consolidated
and charity balance sheet.
In 2009 the trustees have the reviewed
the policy for classifying cash held
on deposit between cash and short
term deposits, in the light of the
Charity’s updated investment policy
to place surplus cash on longer
term deposits. Following this review
the trustees decided to reclassify
US$30 million of deposits in 2008
from cash to funds held on short term
deposits as they believe this better
describes the nature of these funds.
Incoming resources
Income is recognized in the period
to which it is receivable (see separate
deferred income policy).
Commercial trading activities
Income from commercial trading
activities is included in the period in
which the group is entitled to receipt.
Donations and grants
Grants from governments and
other agencies have been included
as donations and similar incoming
resources as these relate to core
funding or are provided for a general
purpose rather than being service
agreements. These are included
in incoming resources when these
are receivable, except as follows:
• When donors specify that donations
and grants given to the charity
must be used in future accounting
periods, the income is deferred until
those periods.
• When donors impose conditions
which have to be fulfilled before
the charity becomes entitled to use
such income, the income is deferred
and not included in incoming
resources until the pre-conditions
for use have been met.
Legacies
Legacies are recognized when the
charity is advised by the personal
representatives of an estate that
payment will be made or property
transferred and the amount involved
can be quantified.
Investment income & interest
Investment income in the form
of dividends together with interest
is included when receivable by
the charity.