Page 60 - RFU Annual Report 2018

5 FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS
8

1. General information (b) Going concern The Rugby Football Foundation and
In adopting the going concern basis for RFU Injured Players’ Foundation
The Rugby Football Union is a preparing the financial statements, the charities are consolidated into the
registered society in England. The Directors have considered the business Group accounts on the basis that the
Registered Office is Rugby House, activities set out in the Strategic Report RFU has control over these entities
Twickenham Stadium, 200 Whitton on pages 10 to 31 including the Group’s through representation on their Boards
Road, Twickenham, Middlesex, principal risks and uncertainties. Based of Trustees.
TW2 7BA. on all this information, including
the Group’s cash flow forecasts and The RFU also has a 25% shareholding
2. Accounting policies projections, the Board is satisfied that in British & Irish Lions Designated
the Group will be able to operate within Activity Company. Due to the
(a) Statement of compliance and the level of its bank facilities for the Group’s inability to exercise
basis of preparation foreseeable future. For this reason, the significant influence over the
The financial statements have been Group continues to adopt the going Associate investment, and due to the
prepared under the historical cost concern basis in preparing its financial immateriality of its net surpluses and
basis, modified to include certain items statements. net assets after the settlement of its
at fair value, and in accordance with the contractual obligations, management
Financial Reporting Standard 102 (FRS (c) Basis of consolidation do not believe that it is appropriate to
102), the Financial Reporting Standard The Group’s financial statements equity account this investment.
applicable in the United Kingdom consolidate the results of the Company
and the Republic of Ireland, and the and its subsidiary undertakings (d) Revenue
Co-operative and Community Benefit up to 30 June each year. The Revenue represents amounts invoiced,
Schemes Act (CCSB). results of subsidiary undertakings excluding value added tax, in respect
are consolidated from the date of of the sale of goods and services
The Group and Company have acquisition to the date of disposal. rendered. Revenue recognition policies
determined that they meet the for specific revenue streams are as
definition to be classified as a public The Group’s interests in subsidiary follows:
benefit under FRS 102 Section 34. undertakings are fully consolidated line
by line, with non-controlling interests’ Ticket revenue and the sale of
The financial statements are prepared share of earnings and retained earnings hospitality packages are recognised
in sterling, which is the functional shown separately. when the relevant event is staged.
currency of the Group, and round to
the nearest £0.1m. In preparation of Revenue determined by commercial
the financial statements, the following contracts, which makes up the
accounting principles and policies have majority of broadcasting revenue,
been applied: sponsorship revenue and the leasing
of hospitality boxes, is recognised in
accordance with the terms and period
of the contract.

Annual
Report
2018