Page 48 - RFU Annual Report 2015/2016

Financial Statements
46

Notes to the Financial Statements

1. General information Information on the impact of first-time (d) Basis of consolidation
adoption of FRS 102 is given in note 30. The Group financial statements
The Rugby Football Union is a consolidate the financial statements
registered society in England. The financial statements are prepared of the Rugby Football Union and its
The Registered Office is Rugby in sterling, which is the functional subsidiary undertakings up to 30 June
House,Twickenham Stadium, 200 currency of the Group and rounded to 2016, and its share of the results and
Whitton Road, Twickenham, the nearest £0.1million. post-acquisition reserves of associated
Middlesex, TW2 7BA. undertakings. No profit and loss is
The following principal accounting presented for the Parent as permitted
2. Accounting policies policies have been applied: by section 408 of the Companies Act
2006. The Parent’s loss for the year was
(a) Statement of compliance (c) Going concern £18.2m (2015: £7.4m loss).
The financial statements have been The financial statements have been
prepared under the historical cost prepared on a going concern basis. The profits and losses of subsidiary
convention, as modified by the fair A significant proportion of the RFU’s and associated undertakings are
value of investment properties and revenue relates to ticket, broadcasting, consolidated from the date of
derivative financial instruments and in hospitality and catering income from acquisition to the date of disposal.
accordance with Financial Reporting the home international matches.
Standard 102 (FRS 102), the Financial The schedule of home international The Group’s interests in associates
Reporting Standard applicable in the matches follows a four-year cycle, with are accounted for using the equity
United Kingdom and the Republic of fewer matches taking place in the years method. Subsidiary undertakings are
Ireland and the Companies Act 2006. in which the Rugby World Cup takes fully consolidated line by line, with
place overseas. The Directors manage the non-controlling interests’ share of
The Group and Company transitioned the RFU’s finances in anticipation of earnings and retained earnings shown
from previously extant UK GAAP this cycle of fluctuating revenues and separately.
to FRS 102 as at 1 July 2014. An profitability, negotiating significant
explanation of the impact of sponsorship, broadcasting and The Rugby Football Foundation,
the transition to FRS 102 on the licensing agreements on a rolling basis a registered charity (charity no.
reported balance sheet and financial and planning the RFU’s cash flows over 1100277 and Company no. 4608134),
performance is given in note 30. the four-year Rugby World Cup cycle. is consolidated within these Group
financial statements on the basis
(b) Basis of preparation and change The Directors have prepared financial that it is a quasi-subsidiary of the
in accounting policy projections that indicate that the RFU Rugby Football Union. Given the
The financial statements have been will be able to meet its liabilities as Rugby Football Foundation’s status
prepared in accordance with applicable they fall due for the foreseeable future. as a charity, separate disclosure of its
UK accounting standards. A summary The Directors have therefore prepared activities is provided in note 31.
of the significant Group accounting the financial statements on a going
policies are set out below. concern basis. The RFU Injured Players Foundation,
a registered charity (charity no.
The Group and Company have A £50m revolving credit facility was 1122139 and Company no. 06438698),
determined that they meet the put in place during the year to provide is consolidated within these Group
definition to be classified as a public finance for the East Stand development financial statements on the basis that
benefit entity under FRS 102 section 34. and Artificial Grass Pitch project. it is a quasi-subsidiary of the Rugby
Football Union. Given the Injured
Players Foundation’s status as a charity,
separate disclosure of its activities is
provided in note 32.

Annual Report 2015/16