Page 23 - Aidlink Financial Statement 2023

NOTES TO THE
FINANCIAL STATEMENTS
Aidlink Financial Statements 2023
For the financial year ended 31 December 2023
in order to finance administration expenses or may be used at the discretion of the organisation for specified purposes that are within the aims of the organisation.
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:
Office equipment 10% straight line Computerequipment 20%straightline
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 such a judgement, estimation or assumption is material, it is disclosed in the notes to the financial statements.
Going Concern
Aidlink has been approved for a five-year Irish Aid grant totalling €2million (€400k per year). As part ofthegrantagreement,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.
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