A Company Limited By Guarantee - Victoria and Albert Museum

THE FRIENDS OF THE V&A NOTES TO THE FINANCIALFOR THE YEAR ENDED 31 MARCH 20081. ACCOUNTING POLICIESBasis of preparationGovernance costsThe financial statements have been prepared under theGovernance costs are those costs relating to the strategichistorical cost convention with the exception of investmentsdirection of the charity and of regulatory compliance.which are included at market value, and in accordance withthe Statement of Recommended Practice “Accounting andReporting by Charities” (SORP 2005), applicable accountingstandards and the Companies Act 1985.The charity has availed itself of paragraph 3(3) of schedule 4 ofthe Companies Act and adapted the Companies Act formatsto reflect the special nature of the charity’s activities.Incoming resourcesSubscriptions and donationsAll subscriptions and donations, including life subscriptions, Grants and Scholarshipsare accounted for on a receipts basis.Grants and scholarships are accounted for at the time theyare approved.Investment incomeDividends and interest are included in the accounts on areceipts basis.Other incomeOther income is accounted for in the period in which it fallsdue. Income received in advance for events is treated asdeferred income and included in creditors.Resources expendedResources expended are included in the Statement ofFinancial Activities on an accruals basis, inclusive of any VATwhich cannot be recovered. Costs are allocated directly to Stocksfunctional headings wherever possible.Stocks of goods for resale are included at the lower of theircost or net realisable value.Cost of generating fundsCosts of generating funds are all costs involved in obtaining Fundsgenerated funds.Charitable activitiesCharitable activities are those costs relating to the corepurposes of the charity.2008STATEMENTSSupport costsSupport costs are those costs which are common to the rangeof charitable activities. These have been allocated on the basisof time spent by staff in each area.Pension costsPension costs are paid under a defined contribution scheme.The assets of the scheme are invested and managedindependently of the finances of the Organisation. Thepension costs charge represents contributions paid in the year.Fixed assetsIndividual fixed assets costing more than £250 are capitalisedat cost. Depreciation is provided at rates calculated to write offthe cost of each asset over its expected useful life. Theestimated life used is 4 years for each asset.InvestmentsInvestments are stated at market value at the balance sheetdate. Net gains and losses arising on revaluations anddisposals are charged or credited to the SOFA.Unrestricted funds may be applied to any of the charitableobjects at the discretion of the trustees. Designated funds areunrestricted funds which have been set aside by the trusteesfor particular purposes.