Page 61 - RFU Annual Report 2018

5
FINANCIAL STATEMENTS

9

Subscription income is recognised A finance lease is recognised at the Deferred tax balances are recognised
when the respective grant conditions inception of the lease at fair value in respect of all timing differences that
have been satisfied and over the and is depreciated on a straight-line have originated but not reversed by the
period to which the grant relates. basis over the shorter of the useful Balance Sheet date, except that:
economic life and the lease term.
Travel revenue is recognised on the Lease payments are split between a The recognition of deferred tax
commencement of the related tour, finance charge and a reduction of the assets is limited to the extent that
being the date of travel. capital outstanding so that the interest it is probable that they will be
charge for each accounting period is a recovered against the reversal of
Hotel revenue is recognised at the constant percentage of the capital sum deferred tax liabilities or other future
point which rooms are occupied and outstanding. taxable profits;
food and beverage is sold.
Operating leases are charged on a Where they relate to timing
Health club revenue is recognised straight-line basis over the term of the differences in respect of interests in
on a straight-line basis over the lease to the Profit and Loss Account. subsidiaries, associates, branches
membership term with joining fees and joint ventures and the Group
recognised at the date of the event. (f) Taxation and deferred taxation can control the reversal of the
Tax is recognised in the Profit and timing differences. Such reversal
Fees from the staging of concerts and Loss Account, except where an item is not considered probable in the
after match events at Twickenham of income or expense has been foreseeable future.
Stadium are recognised when the recognised in other comprehensive
relevant event is staged. income or directly in equity. In such a Deferred tax balances are not
situation the tax charge or credit is also recognised in respect of permanent
Revenue from barter transactions recognised in other comprehensive differences except in respect of
are recognised at the gross fair value income or directly in equity. business combinations, when deferred
based on the goods and services tax is recognised on the differences
provided. The offsetting cost of the The income tax credit for the year is between the fair values of assets
goods or services is recognised in calculated on the basis of tax rates acquired and the future tax deductions
cost of goods sold. and laws that have been enacted or available for them and the differences
substantively enacted by the Balance between the fair values of liabilities
Catering income is recognised as at Sheet date. acquired and the amount that will
the date of the event. be assessed for tax. Deferred tax is
determined using tax rates and laws
(e) Leases that have been enacted or substantively
At the inception of a lease the RFU enacted by the Balance Sheet date.
makes an election whether it is a
finance or an operating lease. The
criteria for recognition as a finance
lease is that the risk and rewards of
ownership are transferred to the RFU;
if these are not met, then the lease is
classified as an operating lease.

Annual
Report
2018