Page 85 - Pobl Annual Report FY25

Annual Report 2025 83
Notes to the Financial Statements
for the year ended 31 March 2025
Internal Rents
Across the Pobl Group, where properties are managed by one company but owned by another an internal rent is
charged to reflect the costs incurred by the property owner. The internal charge is equivalent to rent and service
chargeable costs charged to the external customer, in line with the Group’s rent and service charge policy.
Related Parties
The Group discloses transactions with related parties which are not wholly owned within the same Group. Where
appropriate, transactions of a similar nature are aggregated unless, in the opinion of the Directors, separate
disclosure is necessary to understand the effect of the transactions on the Group financial statements. All
transactions with related parties are under standard terms.
Restricted funds
Restricted funds are those which are only expendable with the wishes of the funders. These include funds raised in
response to specific appeals.
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for
income and expenditure during the year.
The Group based its estimates and assumptions on parameters available at the time the consolidated financial
statements were prepared. Existing circumstances and assumptions about future developments may change due to
market circumstances, legislation or other circumstances beyond the Group’s control.
Such changes are reflected in the assumptions and estimates when they occur.
The following judgements and estimates have had the most significant effect on amounts recognised in the financial
statements.
Estimated useful lives of property, plant and equipment
At the date of capitalising tangible fixed assets, the Group estimates the useful life of the asset based upon
management’s judgement and experience. Due to the significance of capital investment to the Group, variances
between actual and estimated economic lives could affect the Group’s result positively or negatively.
Components of housing properties and useful lives
Major components of housing properties have significantly different patterns of consumption of economic benefits
and estimates are made to allocate the initial cost of the property to its major components and to depreciate each
component separately over its useful economic life. The Group considers whether there are any indications that the
useful lives require revision at each reporting date to ensure that they remain appropriate.
2. Critical Accounting Judgements and Estimation Uncertaincy
1.3. Summary of significant accounting policies (continued)