Page 57 - RFU Annual Report 2017

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Financial Statements

(l) Investment property (0) Unlisted investments Loan notes not treated as public benefit
Investment properties are initially Unlisted investments are accounted for entity concessionary items are initially
recognised at cost, which includes at fair value through profit and loss. recorded at the present value of the
the purchase price and any directly future payments, which are discounted
attributable expenditure. (p) Stock at a market rate of interest for a
Stock, which represents goods held similar loan. They are subsequently
Investment properties are subsequently for resale, is stated at the lower of cost recognised at amortised cost using
measured at fair value with changes and net realisable value. Net realisable the effective interest method, less any
in fair value being recognised in the value is the estimated selling price less provision for impairment. Loan notes
Profit and Loss Account. The Group any costs to be incurred during the that are receivable within a year are not
uses independent valuation specialists selling process. discounted.
to determine fair value of investment
properties. Income and expenses from Cost is calculated based on a first in, (r) Creditors
investment properties are recognised first out basis. Work in progress and Short term creditors are measured at
as appropriate over the life of the asset. finished goods include labour costs the transaction price. Other financial
and attributable overheads. At each liabilities, including bank loans, are
(m) Investments in subsidiary and Balance Sheet date stock is assessed initially recorded at fair value, net of
associate undertakings for impairment. If stock is impaired, its transaction costs, and are subsequently
Investments in subsidiary and carrying amount is reduced to its net recognised at amortised cost using the
associate undertakings are held as fixed realisable value. The impairment loss is effective interest method.
assets and stated at cost, less provision recognised in profit and loss.
for impairment, in the stand-alone
financial statements of the Parent. (q) Debtors
Short term debtors are recognised at
(n) Other investments the transaction price, less any provision
Other investments held for charitable for impairment. Loans receivable are
purposes are initially recognised at initially recorded at fair value, net of
fair value. Fair value at inception is transaction costs, and are subsequently
normally equal to the transaction price recognised at amortised cost using
less related costs. The investments are the effective interest method, less any
subsequently measured at fair value provision for impairment.
through profit and loss.

Annual Report 2017