Page 63 - RFU Annual Report 2018

6
FINANCIAL STATEMENTS

1

(p) Creditors Annually the Company engages Exchange gains and losses, arising
Short term creditors are measured at independent actuaries to calculate on both settled and unsettled foreign
the transaction price. Other financial the obligation. The present value currency transactions, are included in
liabilities, including bank loans, are is determined by discounting the the Profit and Loss Account.
initially recorded at fair value, net of estimated future payments using
transaction costs, and are subsequently market yields on high quality (t) Debentures
recognised at amortised cost using the corporate bonds and that have terms The Group has determined the entity
effective interest method. approximating the estimated period of and the debentures meet the criteria
the future payments (‘discount rate’). set out in Section 34 FRS 102 to be
(q) Cash and cash equivalents classified as public benefit entity
Cash and cash equivalents include The fair value of plan assets is concessionary loans. Initially these
short-term deposits with banks and measured in accordance with the FRS are recorded on the Balance Sheet at
other financial institutions, with a 102 fair value hierarchy. This includes the value received. Subsequently these
maturity date of three months or less the use of appropriate valuation values are adjusted for any interest
from the date of acquisition. techniques. receivable or payable on the balance. It
is not anticipated that there will be any
The Group Cash Flow Statement shows Actuarial gains and losses arising change in value.
the cash and cash equivalents net of from adjustments due to historical
bank overdrafts that are repayable on performance and changes in actuarial (u) Employee termination benefits
demand and form an integral part of assumptions are charged or credited The Group recognises termination
the cash flow management. to other comprehensive income. These benefit liabilities only when it is
amounts together with the return on demonstrably committed to either
(r) Pension and other plan assets, less amounts included in terminating the employment of an
post-retirement benefits net interest, are disclosed as ‘Gain on employee or group of employees
The Rugby Football Union operates a remeasurement of net defined benefit before their normal retirement date
defined contribution pension scheme pension obligation’. or to providing termination benefits
and a defined benefit pension scheme. as a result of an offer made in order to
The net interest cost is calculated encourage voluntary redundancy.
(i) Defined contribution pension plan by applying the discount rate to the
The defined contribution plan has net balance of the defined benefit (v) Disclosure exemptions
contributions based on a percentage obligation and the fair value of plan The Parent has taken advantage of
of salary made to an independently assets. the following disclosure exemptions
administered plan, the contributions available under FRS 102:
being recognised as an expense when (s) Derivative financial instruments
they fall due. There is no legal or and hedging activities The requirements of section 7
constructive obligation to make any The Group uses forward exchange “Statements of Cash Flows” and
further payments to the plans other contracts in relation to the Euro section 3 “Financial Statement
than contributions due. denominated income from the Six Presentation” paragraph 3.17 (d).
Nations tournament. They are recorded
(ii) Defined benefit scheme at fair value which is initially nil. At The requirements of section 11
The defined benefit plan determines each reporting date the contracts are paragraphs 11.39 to 11.48A and
the pension benefit that the employee valued at fair value with the movement section 12 paragraphs 12.26 to 12.29.
will receive on retirement, dependent being taken to equity and is only
upon several factors including age, released on expiry of the contract. The requirement of section 33
length of service and remuneration. “Related Party Disclosures”
Monetary assets and liabilities paragraph 33.7.
The asset recognised in the balance denominated in foreign currencies
sheet in respect of the defined benefit are translated at the rates ruling at the
plan is the fair value of the plan assets Balance Sheet date.
less the present value of the defined
benefit obligation at year end.

Annual
Report
2018