Consistency In Accocunting Information Essay Example

with the recommendations of the statements of recommended practice Accounting and reporting by charities (the SORP) revised in 2005. The charity fully adopted financial standard 17 retirement benefits (FRS17) from 1 April; 2005.The accounts incorporate the results of the wholly owned trading company, Dulwich Picture Gallery Enterprises limited (DPGE).

In the statement of financial activities the results of DPGE are consolidated with those of the operating fund of the gallery on a line by line basis. Separate balance sheets as at 31 March 2007 are presented for the group as a whole and for the gallery. Donations and investments income are shown in the accounts when the conditions for receipt have been met.Legacy income is shown when thee is certainty of receipt and the amount due to be ascertained with reasonable accuracy.

Cost of generating funds include investment management fees and the staff and other costs associated with fundraising as well as the costs include all expenditure on the education department, the temporary exhibition program, the collection and building and publicity. Governance costs include all expenditure on constitutional and statutory requirements and costs associated with board meetings and of staff liaising with board members on strategic issues.Support costs, which include administration staff costs and general office expenses, have been apportioned to the charities activities. Staffs in post prior to February 2002 were offered membership of a defined benefit pension scheme. Contributions to the scheme are charged in the statement of financial activities so as to spread the cost of pensions over the employees’ working lives. The investments comprising the funds of the plan are administered by pensions over the employees’ working lives.

The investments comprising the

funds of the plan are administered by pension fund trustees and are independent of the gallery’s assets. Further, details are set out in note 18. Other staffs are offered membership of a defined contribution scheme. Employer contributions to this scheme are charged in the statement of financial activities as incurred. Further details are set out in note 19.

The value of the collection of pictures and historic furniture held ate the gallery is not reflected in the accounts.These are heritage assets whose historic value is not readily ascertainable and the trustees consider that the cost of obtaining a valuation would outweigh the benefit to users of the accounts. The cost of additions to the collection is written off as incurred in the statement of financial activities, as such additions are infrequent and their cost is immaterial in relation to the collection as a whole. The financial policies listed above indicate that the firm maintains policies that are followed from here to here and they form the basis of financial statements preparations.

They have indicated how assets that are fixed assets are recorded from here to here. This shows consistent in liabilities of the firm. They have also indicated that their accounts are kept on the basis of accrual. Accrual basis is where accounting is done not in receipts and payments but on actual costs incurred at a specific period for a specific incoming resource, for example if 1 indicates that his money will finance activities for the following period, it will expended that specific period and for the specific purpose. It will be recorded as an income for the period it will be expended.