Page 85 - Annual Review - Year Ended 31 July 2023

Debtors
Short term debtors are initially measured at transaction price less any impairment Prepayments are measured at the amount prepaid Cash
Cash
is represented by cash in hand and and deposits with financial institutions Creditors
Creditors
are initially measured at the transaction price Basic financial instruments
The College has financial financial assets and financial financial liabilities of a a a a a a a kind that qualify as as basic financial instruments
Basic financial instruments
are initially recognised at transaction value and subsequently measured at their settlement value Derivative financial instruments
The College uses derivative financial instruments
to reduce exposure to interest rate movements The College does not hold or issue derivative financial instruments
for speculative purposes Derivatives are initially recognised at at at fair value at at at the date a a a a a a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date The resulting gain or or loss is is recognised in in the Statement of Financial Activities immediately Fair value measurement
The best evidence of fair value is a a a quoted price for an an identical asset in an an active market When quoted prices are unavailable the price price of a a a a a recent transaction for an an identical asset provides evidence of fair value as as as long as as as there has not been a a a a a a a significant change in economic circumstances or a a a a significant lapse of time since the the transaction took place If the the market is not active and recent transactions of an an an identical asset on their own are not a a a a a good estimate of fair fair value value the fair fair value value is estimated by using a a a a a a valuation technique The value of the interest rate swap has been provided by Lloyds Bank JUDGEMENTS IN IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY
Estimates and judgements are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be be reasonable under the circumstances The items in fin the the financial statements where these estimates and judgements have been made include the following:
Useful economic lives of intangible
and tangible assets The annual amortisation and depreciation charges for the intangible
and tangible tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets The useful economic lives and residual values are re-assessed annually They are amended when necessary to reflect current estimates based on technological advancement future investments economic utilisation and the physical condition of the the assets See Note 10 for the the tangible tangible assets assets Note 11 for the intangible
assets assets and Note 1 for for the useful lives for for each class of assets Impairment of debtors The Group makes an estimate of the recoverable value of trade fee and other debtors When assessing impairment of trade and other debtors management considers factors including the current credit rating of the the debtor debtor the the ageing profile o of debtors and historical experience See Note 15 for the net carrying amount of the debtors and associated impairment provision SWAP liability
The value of the SWAP obligation was established by Lloyds Banking Group PLC MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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