Page 62 - RFU Annual Report 2018

6 FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS CONTINUED
0

2. Accounting policies continued At the end of each reporting period These loans are accounted for as
all tangible assets are assessed concessionary items in accordance with
(g) Intangible fixed assets and for impairment by comparing the section 34 of the public benefit entity
amortisation carrying amount with the higher of the guidance contained within FRS 102.
Intangible assets relate to computer recoverable amount or value in use.
software, which are initially recognised If the carrying amount exceeds these (j) Investment property
at cost. Following initial recognition, amounts it is reduced with the amount Investment property is initially
intangible assets with finite useful lives recognised in the Profit and Loss measured at cost which is the purchase
are carried at cost less accumulated Account. price less any costs. Subsequently the
amortisation and impairment losses. properties are measured at fair value
Amortisation is charged on a straight- Artificial grass pitch (AGP) at each reporting date with changes
line basis over the estimated useful life The Rugby Football Development being recognised in the Profit and Loss
as follows: Limited (RFDL) entity, a fully Account. The Group has used previous
consolidated subsidiary has developed independent valuations and adjusted
Computer software 3-5 years a national facilities strategy to deliver for the market conditions using an
AGPs to the grassroots of the game. independent source.
At the end of each reporting period
the intangible assets are assessed for Under the AGP project, the RFU (k) Investments in subsidiary and
indication of impairment. If there is leases sites from selected clubs for 30 associate undertakings
an indicator, an impairment test is years. RFDL builds and subsequently Investments in subsidiary and
performed comparing the carrying manages pitches on these sites. associate undertakings are held as
value with the higher of the recoverable fixed assets and stated at cost, less
amount or value in use with any excess The pitches consist of two layers: the provision for impairment, in the
in the carrying amount being taken to base layer which has a useful economic stand-alone financial statements of the
the Profit and Loss Account. life of 30 years, and the top layer, which Parent.
has a useful economic life of 10 years.
(h) Tangible fixed assets and The layers of the pitches are capitalised (l) Other investments
depreciation as separate assets and depreciated The investments are held for charitable
Tangible assets are stated at cost less using the straight line method over purposes and are initially recognised
accumulated depreciation and any their respective economic lives. at fair value. Subsequently the
provision for impairment. Such costs investments are measured at fair value
include costs directly attributable to Depreciation is charged from the through Profit and Loss Account.
bringing the asset into use. Borrowing date that the asset is available for use.
costs directly attributable to major This is deemed to be when a practical (m) Unlisted investments
stadium work are capitalised as part of completion handover document from Unlisted investments are accounted for
the asset. the supplier has been signed by RFDL. at fair value through profit and loss.
At this point the asset ceases to be an
Depreciation commences when the “asset in the course of construction” (n) Stock
asset is first brought into use and is and is transferred to the asset class Stock is held for resale and is initially
provided to write off the cost of the “land and buildings”. valued at the lower of cost (first in,
assets on a systematic basis over their first out basis) and net realisable value
estimated useful lives on a straight- (i) Loans to clubs (price less selling costs). At each
line basis as follows: Loans to clubs are recorded at cost in reporting date the stock is impaired
the Balance Sheet. They each have their if its carrying value exceeds its net
Land and buildings 10-50 years own individual terms and conditions realisable value with the loss being
and are advanced to member clubs recognised in the Profit and Loss
Long-term leasehold over the period by the Rugby Football Foundation, Account.
property of the lease and by the RFU under the RFU club
improvement scheme. (o) Debtors
Fixtures, fittings 3-40 years Short-term debtors are recognised at
and equipment the transaction price, less any provision
for impairment.
Assets held under over the period
finance leases of the lease

Annual
Report
2018