Page 51 - RFU Annual Report 2015/2016

Financial Statements
49

(j) Finance leases (l) Investment property (0) Unlisted investments
Assets held under finance leases, which Investment properties are initially Unlisted investments are accounted for
confer rights and obligations similar to recognised at cost, which includes at fair value.
those attached to owned assets, and the purchase cost and any directly
related lease obligations are included attributable expenditure. (p) Stock
at the fair value of the leased assets at Stock, which represents goods held
the inception of the lease. Depreciation Investment properties are subsequently for resale, is stated at the lower of cost
on leased assets is calculated to write measured at fair value with changes and net realisable value. Net realisable
off this amount on a straight-line basis in fair value being recognised in the value is estimated to be the selling
over the shorter of the lease term and Profit and Loss account. The Group price less any further deductions
the useful life of the asset. Rentals uses independent valuation specialists considered necessary for obsolete or
payable are apportioned between the to determine fair value of investment slow-moving stock.
finance charge and a reduction of properties. Income and expenses from
the outstanding obligation for future investment properties are accrued as Cost is based on the cost of purchase
amounts payable so that the charge for appropriate over the period. on a first in, first out basis. Work in
each accounting period is a constant progress and finished goods include
percentage of the remaining balance of (m) Investments in subsidiary and labour and attributable overheads.
the capital sum outstanding. associate undertakings At each Balance Sheet date, stocks
Investments in subsidiary and are assessed for impairment. If stock
(k) Loans to clubs associate undertakings are held as fixed is impaired, the carrying amount is
Loans to clubs are recorded at cost assets and stated at cost less provision reduced to its selling price less costs to
in the Balance Sheet. The loans are for impairment in the stand-alone complete and sell. The impairment loss
advanced to member clubs by the financial statements of the parent. is recognised immediately in the Profit
Rugby Football Foundation and and Loss account.
by the RFU under the RFU club (n) Other investments
improvement loan scheme. They Other investments held for charitable
are secured by either mortgages or purposes are recognised initially at fair
personal guarantees and are interest value, which is normally the transaction
free subject to the loan terms and price excluding transaction costs.
conditions. These loans are accounted The investments are subsequently
for as concessionary loans in the scope measured at fair value through the
of section 34 of FRS 102 of the public Profit and Loss account.
benefit entity guidance.

Annual Report 2015/16