Page 65 - Aidlink AR 2021

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2021
1. ACCOUNTING POLICIES
Aidlink accounts are presented in euro. The significant accounting policies adopted by Aidlink are as follows:
General information
Aidlink is a company incorporated
in Ireland under the Companies Act 2014. The company is a company limited by guarantee not having
a share capital (CLG) under Part
18 of the Companies Act 2014. The address of the registered office
is Terenure Enterprise Centre, 17 Rathfarnham Road, Terenure, Dublin 6W, D6W X921. The company’s operations and its principal activities are set out in the Director’s Report on pages 44 to 57.
Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with:
• Accounting and Reporting
by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS 102));
• The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102); and
• Irish statute comprising the Companies Act 2014.
As permitted by section 291(3)(4) of the Companies Act 2014, the company has varied the standard format specified in that Act for the
Statement of Financial Activities,
the Balance Sheets and Cash Flow Statement. Departures from the standard formats, as outlined in the Companies Act 2014, are to comply with the requirements of the Charities SORP (FRS 102) and are in compliance with sections 4.7, 10.6 and 15.2 of
that SORP. The Charities SORP is a statement of recommended practice that sets out how charities should set their annual financial statements and report on their finances.
The SORP is an interpretation of
the underlying financial reporting standards and generally accepted accounting practice. The SORP
is approved by the UK Accounting Standards Board and is overseen by expert members drawn from the four charity law jurisdictions covered by UK-Irish GAAP.
Financial reporting in line with the Charities SORP (FRS 102) is considered best practice for charities in Ireland. As noted above, the Directors consider the adoption of the Charities SORP (FRS 102) requirements as the most appropriate accounting practice and presentation to fairly reflect and disclose the activities of the company.
Income
Income is analysed according to the activity that produced the resources as follows:
• Donations and legacies
Donations and legacies include all income received by Aidlink that is, in substance, a gift made to the company on a voluntary
•
basis. It is accounted for when there is evidence of entitlement, receipt is probable, and the amount can be measured reliably. As with similar charitable organisations, independent groups from time to time organise fundraising activities. However, as amounts collected this way are outside the control of Aidlink, they are not included in the financial statements until received by Aidlink.
Charitable activities
Income from charitable activities includes income earned from performance related grants
that specify the activities to
be delivered by Aidlink. It is accounted for when amounts receivable on grant and funding applications are approved or paid.
Aidlink Annual Report 2021 | 63
• Investment
Investment income is accounted for on a receipts basis.
Restricted funds
Income received by Aidlink, the application of which is restricted to a specific purpose by the donor, is treated as restricted funds and any unspent amounts as restricted assets. Such specified purposes are within the overall aims of the organisation.
Unrestricted funds
Other income, apart from restricted funds, is used by Aidlink in the furtherance of its work and objectives. Such funds may be held