Page 60 - Aidlink Annual Report 2020

Notes to the Financial Statements
for the financial year ended 31 December 2020 Continued
EXPENDITURE
Resources expended are analysed between raising funds and expenditure on charitable activities. Raising funds and expenditure on charitable activities are accounted for on an accrual basis.
• Raising Funds
Expenditure on raising funds includes all expenditure incurred by Aidlink to raise funds for its charitable activities.
• Charitable Activities Expenditure on charitable activities includes all costs incurred by Aidlink in undertaking activities that further its charitable aims, including those support costs and costs relating to governance of the company.
• Support Costs
Support costs are directly allocated to the related activity where possible. Otherwise support costs are allocated on the basis of staff time.
FOREIGN CURRENCIES
Revenues and costs arising from transactions denominated in foreign currencies are translated into Euro at the rates of exchange ruling on the date on which the transaction occurred.
Assets and liabilities denominated in foreign currencies are translated into Euro at the rates of exchange ruling on the balance sheet date. The resulting surplus or deficit
are dealt with in the statement of financial activities.
CASH AT BANK AND IN HAND
Cash at bank and in hand comprises cash on hand and demand deposits.
FIXED ASSETS AND DEPRECIATION
Fixed assets are recorded at cost.
Depreciation is provided so as to write off the cost of fixed assets over their expected useful lives at the following annual rates:
such a judgement, estimation or assumption is material, it is disclosed in the notes to the financial statements.
GOING CONCERN
The company has entered into
a three year funding agreement with Irish Aid. As part of that agreement, Aidlink must meet certain conditions, including the expenditure of funds from non Irish Aid sources. The directors
are satisfied that Aidlink will be able to meet the conditions of the Irish Aid funding agreement. The company’s activities as well as the related funding uncertainties are set out in the Directors’ Report.
As is explained more fully in
Plans for the Future and Going Concern in the Directors’ Report, the Directors have a reasonable expectation that the company has adequate resources to continue
its operational activities for
the foreseeable future, being a period of twelve months from the date of approval of the financial statements. Accordingly, the Directors have continued to
adopt the going concern basis of accounting in preparing the annual financial statements.
Office equipment Computer equipment
10% straight line 20% straight line
OPERATING LEASES
Annual operating leases are charged to the statement of financial activities in the year that they are paid.
FINANCIAL INSTRUMENTS
Aidlink only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINITY
In the application of Aidlink’s accounting policies, the Directors are required to make judgements, estimates and assumptions
about the carrying amounts of assets and liabilities that are
not readily apparent from other sources. Given the scale of the company’s activities and the quantum of the individual items contained within assets and liabilities, these judgements, estimates and assumptions
are generally immaterial to the financial statements. Where
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