Page 54 - RFU Annual Report 2017

52
Financial Statements

Notes to the Financial Statements

1. General information The following principal accounting (d) Basis of consolidation
policies have been applied: The Group accounts consolidate the
The Rugby Football Union is a financial statements of the Rugby
registered society in England. The (c) Going concern Football Union and its subsidiary
Registered Office is Rugby House, The financial statements have been undertakings up to 30 June 2017.
Twickenham Stadium, 200 Whitton prepared on a going concern basis. A No profit and loss is presented for
Road, Twickenham, Middlesex, significant proportion of the RFU’s the Parent as permitted by the Co-
TW2 7BA. revenue relates to ticket, broadcasting, operative and Community Benefit
hospitality and catering income from Schemes Act (CCBS Act). The Parent’s
2. Accounting policies the home international matches. profit for the year was £12.9m (2016:
£18.2m loss).
(a) Statement of compliance The schedule of home international
The financial statements have been matches follows a four-year cycle, with The profits and losses of subsidiaries
prepared under the historical cost fewer matches taking place in the are consolidated from the date of
convention, as modified by the fair years where a Rugby World Cup takes acquisition to the date of disposal.
value of investment properties, fixed place overseas. The Directors manage
asset investments and derivative the RFU’s finances in anticipation of The Group’s interests in subsidiary
financial instruments and in this cycle of fluctuating revenues and undertakings are fully consolidated
accordance with Financial Reporting profitability, negotiating significant line by line, with the non-controlling
Standard 102 (FRS 102), the Financial multi-year sponsorship, broadcasting interests’ share of earnings and
Reporting Standard applicable in the and licensing agreements on a rolling retained earnings shown separately.
United Kingdom and the Republic basis and planning the cashflows over
of Ireland, and the Co-operative and the four-year Rugby World Cup cycle. Due to the Group’s inability to
Community Benefit Schemes Act exercise significant influence over
(CCBS Act). In order to complete the significant its “Associate” investment (see
capital projects of the East Stand note 15) and the immateriality of its
(b) Basis of preparation and change Development and the AGP RugbyTurf net surpluses and net assets after
in accounting policy Programme a revised borrowing facility the settlement of its contractual
The financial statements have been has been committed to with RBS post obligations, the Directors have not
prepared in accordance with applicable year end that comprises a £50m term equity accounted this investment on
UK accounting standards. A summary loan for four years, along with a five the grounds of materiality.
of the significant Group accounting year £25m Revolving Credit Facility
policies are set out below. and a five year £25m overdraft facility. The Rugby Football Foundation,
a registered charity (Charity no.
The Group and Company have The Directors have therefore prepared 1100277 and Company no. 4608134),
determined that they meet the the financial statements on a going is consolidated within these Group
definition to be classified as a public concern basis. financial statements on the basis
benefit entity under FRS 102 section 34. that it is a quasi-subsidiary of the
Rugby Football Union. Given the
The financial statements are prepared Rugby Football Foundation’s status
in sterling, which is the functional as a charity, separate disclosure of its
currency of the Group, and rounded to activities are provided in note 30.
the nearest £0.1 million.
The RFU Injured Players Foundation,
a registered charity (Charity no.
1122139 and Company no. 06438698),
is consolidated within these Group
financial statements on the basis that
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 are
provided in note 31.

Annual Report 2017