DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 Registered number: 01945780 Charity number.. 1109555 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN (A company limited by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee CONTENTS Page Reference and administrative details of the charity, its Trustees and advisers Chalrfs statement Trustees. report Trustees. responsibilities ststement Independent auditor's rgport on the financial statomonts 10-13 Consolidated statement of financial activities 14 Consolidated balance sheet 15-16 Charlty balance sheet 17-18 Consolidated staternent of cash flows 19 Notes to the financial ststements 20-44 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022 Trustees Richard Ducker GIA, GG lappointed 26 October 20221 Katie Flitcroft lappointed 26 October 20221 Marguerite Campbell Pedersen lappoinled 26 October 20221 Pia Pompea Tonna (appointed 26 October 20221 Justine Carmody FGA, Chair Christopher Smith FGA Nevin Bayoumi-stefanovic FGA Philip Sadler FCCA, FGA, DGA Joanna Hardy FGA Company registered number 01945780 Charity registered number 1109555 Registered office 16 Great Queen Street Covent Garden London WC2B SAH Company secretary Alan Hart FGA, DGA Independent auditor Blick Rolhenberg Audit LLP Chartered Accounlanls 16 Great Queen Street Covent Garden London WC2B SAH Chief Executive Officer Alan Hart FGA Page 1 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee CHAIR'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 The chair presents her statement for the year. IThe Un￿rtaIntieS we faced during the COVID pandemic are unforgettable and in 2022 while much of the worfd was recovering from the impact of the pandemic, the Association still felt ils effects as China continued lo experience multiple lockdowns throughout the year. As the world started to adjust and estsblish new ways of working, we were all impacted by the war in Ukraine, which brought into focus new issues such as inflation, rising interest rates, etc. However, the Association saw a marginal increase in revenue of 6.5Yo between FY21 and FY22. Like many professional bodies, we have learnt a great deal during these extraordinary times by listening to and consulting with our students, Members, partners, industry, and other experts, as we continued lo grow and reinforce our work, in line with our charitable purpose and strategic objectives. The Association continued to build and make significant progress in establishing better internal processes and completed the full upgrade of our internal IT and infrastructure systems. The upgrade of our IT systems was a critical component of our digital first approach, following on from the pandemic. The Association adopted a hybrid working model, consislenl with the need to deliver services to our students and Members and maintaining the important work of the Association. As part of the new normal, the Association has fully embraced education technology and has made provisions for our global leaching cenlres lo continue delivering theoretical aspects of the course using hybrid teaching methods. l am grateful for the ongoing resilience of Gem-A staff through these internal changes. In addition to the delivery of our flagship gemmology courses and in responding lo the rapid demand for online education in 2022, we successfully launched GemlNTRO, which is the Association's first fully accredited Ofqual level 2 online qualification. This qualification is targeted towards those individuals that are new or beginning their career in our industry and would like a wholesome and comprehensive introduction to the world of gemstones. The Members of the Council and Trustees have been very pleased with the feedback received on this course and ils initial response. We successfully entered multiple reseller agreements to launch GemlNTRO in North America, India, and the Middle East. In 2022, we also began the translation of GemlNTRO in Chinese Traditional lo launch the course in Greater China. In 2022 we made further progress in formalising the estsblishmenl of the Gem-A USA entity, and we are excited about the progress that has been made and we are slralegically reviewing opportunities to establish new ATCS and training partners lo grow our education provision in this region. The Association allended the Tucson show for the first lime Sin￿ 2020 and we were delighted lo welcome our members, partners, and friends to the annual Gem-A Bash, which took place in collaboration with the Accredited Gemmologists Association and the Canadian Gemmological Association. The annual bash was supported and sponsored by 100Q/o Natural Ltd. This year we also attended the HardRock Summit (The Denver Gem and Mineral show) in September 2022, which was attended by many of our partners and members and provided an opportunity for us lo interact with the industry and promote our education and membership services in USA. Looking lo the future, the Association continues lo identify new regions lo grow and advance its education and membership offering, while continuing to support and further develop its presence in existing regions globally. The Association's flagship publication, The Journal of Gemmology, under the editorship of Brendan Laurs continues to flourish and is highly regarded internationally, with a print run of over 2,500 per quarter with all back issues being available online. We continued publishing Gems & Jewellery magazine online and this publication continues lo be popular with wider ranging articles from a growing number of specialists across the gemmological fields, under the editorship of Jennifer Lynn Archuletta. The Members of the Council and Trustees have made the decision to continue publication of Gems & Jewellery online for the foreseeable future. Page 2 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee CHAIRMAN'S STATEMENT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 During 2022, the Members of the Council and Board of Trustees have continued to support the Association in providing strategic oversight for Gem A and are pleased to report that we have successfully managed the impact of the pandemic and current global Un￿rtaIntieS on our financial performance for the year. In 2022 we commenced work on reviewing and updating the Association's strategy, which was last reviewed in 2020 during the peak of the pandemic. As part of this review the Members of the Council and the Board of Trustees worked with senior management in reviewing and updating the Association's strategic objectives and priorities. Our priorities contain some exciting new developments including a brand-new website, a portal for our members, and completing the update of our gemmology and diamond courses. The Members of the Council and Trustees can report that the Association has had a worthy financial performance considering global events and is now well positioned lo develop itself in established regions and explore new ventures. While there are many challenges still facing the Association, laryely due to current political and economic landscape, especially in key regions where the Association is very active, we are confident in our ability to withstand these issues as we continue to provide world-class education and membership services globally. I give credit to both our CEO and the continued efforts and professionalism of Gem-A staff who I would like lo thank for not only their hard work, but also their passion, resilien￿, and commitment to the Association. The Board would also like to recognise the global ATC'S, tutors and our examiners who have once again shown their outstanding commitment in maintaining our unparalleled high standards and course offerings that define us. I would like to thank members of the Board who generously give their lime and advice freely and perform an essential role in overseeing Gem-A on behalf of all ils stakeholders. For my own part, it has been a privilege lo play a direct and active role in continuing lo support the Association through a very challenging period and l am pleased lo say that Gem-A remains a going concern. Looking forward, 2023 and 2024 will continue to be challenging, however, through actions taken, and our strategic priorities, the Association will continue lo remain adaptsble, identifying new opportunities and pursuing growth in new areas. Fundamentally while we may need lo continue lo pivot in the short term overseen by the Board and under the leadership of our CEO Alan Hart, we remain confi'dent in the Association's ability to continue lo flourish and grow. Members are at the heart of the Association. We exist to support our members through the different stages of their professional careers, from gemmology students through lo experts and leaders within the industry. The support of our community, i.e., our members, students, and strategic partners, has been invaluable and I would like to offer my deepest gratitude lo everyone who has been involved with the Association over our long history and I look forward to your continuing support and partnership in the limes ahead. Jusline Carmody FGA (Chairl 29-Aug-23 1 17.. 39 BST Dale.. Page 3 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees present their annual report together with the audited financial statements of the charity for the year 1 January 2022 to 31 December 2022. The annual report serves the purposes of both a Trustees. report and a directors, report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current slatulory requirements, the requirements of the charitable company's governing docLJment and the provisions of the Statement of Recommended Practice ISORPI applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 leffective 1 January 20191. Objectives and activities a. Policies and objectives In setting objectives and planning for aclivilies, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit.. running a harity IPB21'. The Association's mission is 'to advance gemmology by education and the encouragement of best practices,. 'Gemmology' includes matters Concerned with precious gem materials and the decorative and industrial arts which employ them, thus providing a wide remit within which the Association can develop its services. The focus of the Association is lo provide gemmological qualifications of the highest international reputation, namely the Gemmology Diploma and the Diamond Diploma, with graduation providing eligibility for election as a Fellow of the Gemmological Association IFGAI or as a Diamond Member of the Gemmological Association IDGAI. These are, of course, dependent on the syllabi defined by the needs of the industry and our graduates, a robust examination and assessment system commensurate with the status and reputation of these qualifications, and the support lo encourage our Members and Graduates to continue lo maintain and develop their theoretical and practical expertise. During the year we enrolled 1,053 12021.. 1,1541 students on our Higher Education courses that lead the successful students being able lo apply lo be Fellows of the Association. The decline in student numbers was largely due to the strong impact of covid in China throughout 2022 and this decline was mitigated by stronger student numbers in the rest of the worfd, including Gem-A London ATC. During the year we had 1,654 active, members 12021.. 1,8421 Including Fellow of the Gemmological Association IFGAI, Diamond Member of the Gemmological Association IDGAI, Associate Members, Corporate Members and Direct Subscribers. b. Employment policy The Association's policy is lo consult and discuss with employees al meetings, matters likely to affect employee5, interests. Information of matters of concern lo employees is given through information emails and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performanTr. The Association gives firm emphasis on increasing equality, diversity and inclusion within the profession and the Association itself and Is committed to provide an equal, diverse, and inclusive environment for staff and to work with our members and the industry lo achieve this. Applications for employment by disabled persons and special needs are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled. every effort is made lo ensure that their employment within the Association continues and that the appropriate training and reasonable adjustments to the workplace is arranged. 11 is the policy of the Association that the training, career development and promotion of disabled persons should, as far as possible. be identical lo that of other employees. Page 4 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Achievements and performance a. Publi¢ benefit During the year the Trustees had due regard lo Gem A's public benefit requirements as a Charity. The financial priority for the year was lo continue improving the financial results to allow the Association lo best promote ils aims. Gem A continues to expand ils education around the world both in areas with a large potential market for our education, including the United Slates of America, Middle East, India, China, and in developing countries which need relevant gem education to help establish and grow their gem markets and benefit the local economies and peoples. The Association delivered a series of workshops throughout 2022 including the inlroduclory gemmology workshops at our London Head Office. We also delivered Gem Central for our Members, students and individuals interested in gems and jewellery subjects. In the UK outside of London, regional volunteer branches provided various educational events open lo the public and continue to do so. The Association, where possible has actively promoted these events. Gem A staff also continue to contribute to articles and information to Gem Hub and other magazines dealing with ethical and gem education issues and served on various gem related advisory bodies and committees. Gem A tutors also gave talks al many trade related events throughout 2022. Gem Hub, on the Gem A website, is an educational resource for aspiring and professional gemmologists across a range of disciplines which includes a variety of articles dedicated lo enhancing gemmological knowledge as well as informative features that delve deeper into specific topics. In 2022, Gem-A successfully delivered its first in-person Conference, post the pandemic, albeit over one day al elc. Venue County Hall, which saw over 200 guests engage with 8 intemalional speakers throughout the day. The conference was followed by day of tours and workshops culminating in the annual Graduation and Presentation of Awards ceremony at the historic Church House. The Association was delighted with the ovetwhelmingly positive feedback received on the scheduled sessions and speaker quality. In 2022 Gem A continued lo play an active part in CIBJO, The World Jewellery Confederation, with Gem A CEO, Alan Hart, on the CIBJO Board, as well as industry bodies and European Standards meetings relating lo developing guidelines and temiinologies lo benefit consumer confidence and to reduce the opportunities for fraud. Financial review a. Financial review The consolidated statement of financial activities set out on page 15 of the financial statements shows how the group's incoming resources have been expended in the year ended 31 December 2022. The year continued to present challenges as the Association slowly recovered from the impact of covid lo face new challenges largely due lo geo-political and economic instability, as we continued lo manage the impact of the pandemic on our operations and financial performance. Despite these challenges, the group's incoming resources rose from £2,806,596 to £2,987,749. Total expenditure increased from £2,526,526 to £2,735,737, due to a return to the delivery of in-person events and presence at Iradeshows in the second half of the year. This resulted in a net income before laxalion of £252,012 in 2022 compared lo a surplus of £280,070 in 2021. The Association's wholly owned trading subsidiary, Gemmological Instruments Limited, made a profit of £430,10512021. £504,627) before covenanting £140,72412021'. £156,063) to the Association. The Gemmological Inslrumenls, Limited subsidiary, Gemmological Consulting Beijing, had a deficit of £150,024 12021.. £217,619) after paying £375,950 12021.. £547,465) in royalties and licence fees lo Gemmological Instruments Limited. The consolidated statement of financial position set out on page 16 of the financial ststemenls shows the fi'nancial position of the group al 31 December 2022. Page 5 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 a. Financial review Icontinuedl The group reports net assets of £2,688,58712021.. £2,470,991) which comprise entirely of unreslricled fvnds. b. Going concem The Trustees note that student numbers have continued lo rise in the year following the effects of the COVID-19 pandemic and that costs savings implemented over the last years have ensured the group is now in a sound financial position. They, therefore, have a reasonable expectation that the Association has adequate resources lo continue in operational existence and will continue lo meet its liabilities for the foreseeable future, being a period of at least ￿e1ve months from the dale these financial ststemenls are approved. The Members of the Council and Trustees continue to adopt the going concern basis in preparing the financial slatemenls. c. Reserves policy It is the policy of the Association that unreslricled funds which have not been designated for a specific use should be maintained al a suffi'cient level to continue operations for at least six months. The Members of Council and Trustees consider that reserves at this level will ensure that, in the event of a significant drop in income, they will be able to continue the Association's current activities lincluding the provision of education and assessment lo our students and invest the necessary resource lo underpin our education and assessment functionl, cover any shortfall between income and expenditure, and cover maintenance and repairs to its premises. As at 31 December 2022, the Association has sufficient reserves lo meet the policy. d. Principal funding sources The principal funding sources for the charity are education and membership income. e. Risk management The Members of Council and Trustees have assessed the major risks to which the Association is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. This covers financial, governance, operational and repulalional risks. During the year the Members of Council and Trustees continued lo work with the staff of the Association lo put in place management and operational prO￿dureS to mitigate these risks. The Trustees are continuing the policy of expanding the Association's operations overseas, particularly in North America, Middle East and Asia, lo improve the quality of education in countries where Gemmology is growing fastest. The Trustees understand the financial, ethical, and reputational risks involved and have ensured the c¢> operation of appropriate local partners to assist with the move into these new markets. f. Plans for the future The Trustees plan lo continue growing the Association's education provision through an increased emphasis on online education and co-operating with appropriate local partners to support this development. Furthermore, the Association has expanded ils education provision through the introduction of a new Level 2 basic qualification in gemmology titled Gemlntro, which the Trustees plan lo make available in other languages for markets the Association currently serves. This is an online only qualification that will provide a broad introduction lo the wonderful world of gems and gemmology. The Trustees also plan lo increase Membership engagement and will be focusing on the developing and delivering strategic initiatives to address the needs of our members and build on existing Membership programmes. Going fotward the trustees will continue lo adhere to the Association's mission statement. Page 6 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Structurej governance and management a. Constitution The Association is a company limited by guarantee governed by its Memorandum and Articles of Association dated 15 ALJgLJSt 1985 and amended to allow for Charity status on 11 October 2005 and further amended on 23 June 2016. 1115 registered as a Charity with the Charity Commission. The Members of Council and Trustees, who are also the directors for the purpose of company law were.. Jusline Carmody FGA (Chairl Christopher Smith FGA Joanna Hardy FGA Philip Sadler FCCA, FGA, DGA Pia Tonna lappoinled 2611012022} Kale Flit¢roft (appointed 26110120221 Maggie Campbell Pedersen FGA lappoinled 26110120221 Nevin Bayoumi-slefanovic Richard Drucker (appointed 26110120221 Kathryn Bonanno Patrizzi Iresigned 26110120221 Louise Goldring (resigned 26110120221 b. Methods of appolntment or electlon of Trustees The management of the group and the charity is the responsibility of the Trustees who are elected and C(￿opted under the temis of the Trust deed. c. Recrultment and appolntment Trustees are appointed as set out in the Articles of Association,. when considering co-opting trustees, the Board has regard to the requirement for any specialist skills needed. None of the Members of Council and Trustees has any beneficial interest in the company. All of the Members of Council and Trustees are Members of the company and guarantee lo contribute £10 in the event of a winding up. d. Organlsatlon The Association is administered by the Board of trustees - The Council. _ which may have up lo 10 members and 3 appointed members. The Board meets regularly and there are sub-committees and task groups covering specific governance or development issues that are constituted and which meet as required. A Chief Executive Officer is appointed by the Trustees lo advance the Charitable Mission of the Association and to manage its day- to-day operations. To facilitate effective operations, the Chief Executive Officer has delegated authority, within terms of delegation approved by the Trustees, for operational matters including finance, employment and the development of activities and services. e. Inductlon and tralnlng New trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent fi'nancial performance of the charity. Page 7 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Structurej governance and management Icontinuedl f. Related parties The Association's wholly owned subsidiary, Gemmological Instruments Limited, provides books, equipment and sample gem materials, primarily lo Members and students. Gemmological Instruments Limited may donate its profits lo the Association. Small companies exemption In preparing this report, the Trustees have taken advantage of the small Companies exemption5 provided by section 415A of the Companies Act 2006. Disclosure of infomiation to auditor Each of the persons who are Trustees al the time when this Trustees, report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and that Trustee has taken all the steps that ought to have been tsken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information. Approved by order of the members of the board of Trustees and signed on their behalf by.. Justine Carmody FGA Ichair of Trustees) Dale.. 29-Aug-23 | 17:39 BST Page 8 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees (who are also the directors of the charity for the purposes of company lawl are responsible for preparing the Trustees. report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounb'ng Practicel. Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the stale of affairs of the group and the charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP IFRS 1021., make judgements and accounting estimates that are reasonable and prudent., state whether applieable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial ststemenls", prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the group and the charity's transactions and disclose with reasonable accuracy at any time the financial position of the group and the charity and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 9 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN FOR THE YEAR ENDED 31 DECEMBER 2022 Opinion We have audited the financial statements of The Gemmological Association of Great Britsin (the 'parent charitable company'l and ils subsidiaries Ilhe 'group'l for the year ended 31 December 2022 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated stslemenl of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial slalements.. give a true and fair view of the stale of the group's and of the parent charitable company's affairs as at 31 December 2022 and of the group's incoming resources and application of resources, including its income and expenditure for the year then ended., have been properly prepared in accordan￿ with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act2011. Basis for opinion We conducted our audit in a¢cordanTr with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concorn In auditing the financial statements, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, Individually or collectively, may cast significant doubt on the group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the TTuslees wth respect to going concern are described in the relevant sections of this report. Page 10 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Other information The other information comprises the information included in the annual report other than the financial ststemenls and our auditor's report Ihereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the fi'nancial statements does not cover the other information and, except lo the extent othemise explicitly slated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial stslemenls or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslatemenls, we are required to determine whether this gives rise to a material misststemenl in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other information, we are required to report that fact. We have nothing lo report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, report for the financial year for which the financial statements are prepared is consistent with the fi'nancial slalements. the Trustees, report has been prepared in accordan￿ with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the light of our knowledge and understsnding of the charitsble company and its environment obtsined in the course of the audit, we have not identified material misstatements in the Trustees, report. We have nothing to report in respect of the following matters In relation to which Companies Act 2006 requires us lo report to you if, in our opinion.. the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us., or the parent charitable company financial statements are not in agreement with the accounting records and returns., or certain disclosures of Trustees, remuneration specified by law are not made", or we have not received all the information and explanations we require for our audit", or the Trustees were not entitled to prepare the financial ststemenls in accordance with the small companies regime and lake advantage of the small companies, exemptions in preparing the Trustees, report and from the requirement lo prepare a Strategic report. Responsibilities of Trustees As explained more fully in the Trustees, responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary lo enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial slatemenls, the Trustees are responsible for assessing the group's and the parent charitable company's ability lo continue as a going concern, disclosing, as applicable, mallers related to going concern and using the going concern basis of accounting unless the Trustees either intend lo liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. Page11 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Auditorfs responsibilities ft>r the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and lo issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slatemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, Ou￿1ned above, lo delect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities, including fraud is detailed below.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills lo identify or recognise non-compliance with applicable laws and regulations., we identified the laws and regulations applicable lo the company through discussions with directors and other management, and from our commercial knowledge and experien￿ of the education sector,. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and laxalion legislation-, we assessed the exlenl of compliance wlh the laws and regulations identified above through making enquiries of Management and inspecting legal correspondence", and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non<0mplian￿ throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtsining an understanding of how fraud might occur, by.. making enquiries of management as lo where they considered there was SUS￿ptibl1ify lo fraud, their knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. performed analytical procedures to identify any unusual or unexpected relationships", tested a sample of journal entries lo identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias,. and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited lo.. agreeing financial statement disclosures to undedying supporting documentation., reading the minutes of meetings of those charged with governan¢e', enquiring of management as to actual and potential litigation and claims," and reviewing correspondence with HM Revenue and Customs and the Charity Commission. Page 12 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Auditorfs responsibilities for the audit of the financial statements Icontinuedl There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from fi'nancial transactions, the less likely il is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required lo identify non-compliance with laws and regulations lo enquiry of the Iruslees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due lo fraud can be harder lo delecl than those that arise from error as they may involve deliberate COn￿alment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al.. ww.frc.or .uklauditorsres onsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and lo the charitable company's Iruslees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might stale to the charitsble company's members those matters we are required to stste lo them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. Il+ Russell Tenzer FCA Isenlor statutory audltor} for and on behalf of Blick Rothenberg Audlt LLP Chartered Accountsnts Statutory Auditor 16 Great Queen Street Covenl Garden London WC2B SAH Dale.. 01.09.2023 Page 13 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE ACCOUNT} FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestricted funds 2022 Total funds 2022 Total funds 2021 Note Income from: Donations and legacies Charitsble activities Trading activities 3,020 1,716,722 1,086,854 1.995,600 992,149 1.995,600 992,149 Total income 2,987.749 2,987.749 2,806,596 Expenditure on: Raising funds Charitable activities". Membership costs Education costs 484,211 484.211 583,031 337.729 1.913.797 337.729 1.913.797 291,524 1,651,971 Total expenditure 2,735,737 2,735,737 2,526,526 Net income before taxation Taxation 252,012 168,4161 252,012 168,4161 280,070 1100,6071 12 Net movemgnt in funds before other recognisgd gains 183.596 183.596 179,463 Other recognised gains: Gains on revaluation of fixed assets 34.000 34.000 Net movement In funds 217,596 217,596 179,463 Reconciliation of funds: Total funds brought forward Nel movement in funds 2,470,991 217,596 2,470,991 217,596 2,291,528 179,463 Total funds carried foNiard 2,688,587 2,688,587 2,470,991 The Consolidated statement of financial activities includes all gains and losses recognised in the year. Page 14 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 REGISTERED NUMBER.. 01945780 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA Company limited by guarantee) CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Note Fixed assets Intangible assets Tangible assets 13 14 28.172 3,770,512 27,401 3,763,632 3,798,684 3,791,033 Current assets Stocks Debtors Cash al bank and in hand 16 17 173,831 185,683 1.095,065 161,123 119,758 1,283,523 1.454.579 1,564,404 Creditors." amounts falling due wthin one year 18 1989,103} 11,24S,0751 Net current assets 465.476 318,329 Total assets less current liabilities 4.264.160 4,109,362 Creditors." amounts falling due after more than one year 19 11,575,573) 11,638,371) Totsl net assets 2,688.587 2,470,991 Charity funds Reslricled funds Unrestricted funds 20 20 2,688.587 2,470,991 Total funds 2.688,587 2,470,991 Page 15 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee CONSOLIDATED BALANCE SHEET ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect lo accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject lo the small companies regime. The financial statements were approved and aulhorised for issue by the Trustees and signed on their behalf by.. 04AB5011ADE343C Justine Carmody FGA (Chair of Trustees) Philip Sadler FCCA (Trusteel Dale.. 29-Aug-23 1 17:39 BST The notes on pages 20 to 44 form part of these financial statements. Page 16 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee CHARITY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Note Flxed assets Intangible assets Tangible assets Investments 13 14 15 24.104 3,769,495 210,000 21,300 3,762,361 210,000 4,003,599 3,993,661 Current assets Stocks Debtors Cash al bank and in hand 16 49,446 95,372 335.225 51,151 61,495 525,768 17 480,043 638,414 Creditors.. amounts falling due wthin one year 18 (1,471,766) 11,418,028) Net current liabilities {991.7231 1779,6141 Totsl assets less current liabilities 3,011.876 3,214,047 Creditors.. amounts falling due after more than one year 19 1,575,573) 11,638,371) Total net assets 1,436.303 1,575,676 Charity funds Unrestricted funds 1,436.303 1,575,676 Total funds 1.436.303 1,575,676 Page 17 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee CHARITY STATEMENT OF FINANCIAL POSITION ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 The charity's net movement in funds for the year was £1139,373112021- £{121,2901}. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect lo accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject lo the small companies regime. The financial statements were approved and aulhorised for issue by the Trustees and signed on their behalf by.. Docu8b3Md D4AB503AADE343C Justine Carmody FGA (Chair of Trustees) 29-Aug-23 1 17:39 BST Philip Sadler FCCA (Trusteel Dale.. The notes on pages 20 to 44 form part of these financial statements. Page 18 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BRITAIN IA company limited by guarantee CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Note Cash flows from operating activities Nel cash used in operating activities 23 1113.885} 610,843 Cash flows from investing activities Purchase of intangible assets Purchase of tsngible fixed assets 13 {11.699} 121,3001 124,7841 Net cash used in investing activities 111,699) 146,0841 Cash flows from financing activities Repayments of borrowing {62,798} 146,5211 Net cash used in financing activities 162,798} 46.5211 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 1188.382} 1,283,086 518.238 764,848 Cash and cash equivalents at the end of the year 24 1.094,704 1,283,086 The notes on pages 20 to 44 form part of these financial statements Page 19 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 General information The Gemmological Association of Great Britain is a private company limited by guarantee incorporated in England and Wales. The registered Offi￿ is 16 Great Queen Street, London, WC2B SAH and its principal place of business is at 21 Ely Place, London, EC1 N 6TD. It is also a registered charity with charity number 1109555. The group consists of The Gemmological Association of Great Britain and all of ils subsidiaries. In the event of the charity being wound up, the members, liability in respect of the guarantee is limited to £10 per member of the charity. The financial statements are prepared in Sterling (£1, which is the functional currency of the Association. Monetary amounts in these financial statements are rounded to the nearest £. Accounting policies 2.1 Basls of preparatlon of flnanclal statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities". Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Gemmological Association of Great Britsin meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise slated in the relevant accounting policy. The consolidated ststemenl of financial activities (SOFA) and consolidated balance sheet consolidate the fi'nancial statements of the charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis. The charity has taken advantsge of the exemption allowed under section 408 of the Companies Act 2006 and has not presented ils own statement of financial activities in these financial slatemenls. 2.2 Golng concern After making enquiries, the Trustees have a reasonable expectation that the group has adequate reSoUr￿S lo continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial ststemenls were approved. Accordingly, they continue to adopt the going concem basis in preparing the financial ststemenls. Page 20 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Icontinuedl 2.3 Income All income is recognised once the charity has entitlement to the income, it is probable that the income 11 be received and the amount of income receivable can be measured reliably. Income arising through providing educational courses and course materials as well as membership and subscription income is re¢(￿nised on an accruals basis wth amounts re￿iVed in advance being shown In deferred income. Other trading income consists of the sale of scientific instruments, journals and amounts receivable for goods and services, including licensing fees, provided in the normal course of business, net of discounts, VAT and other sales related taxes and is measured al the fair value of the consideration received or receivable. Other trading income is recognised at the point of sale. Cash donations are recognised on receipt. Other donations are recognised once the Association has been notified of the donation, unless performance conditions require deferral of the amount. The recognition of income from I￿acleS is dependent on establishing entitlement. the probabilty of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entiUement lo a legacy exists when the charity has sufficient evidence that a gift has been left to them (through kllo￿edge of the existence of a valid will and the death of the benefaclorl and the executor is satisfied that the propety in question will not be required to satisfy claims in the estate. Receipt of a legacy musl be recognised when il is probable that Il will be received and the fair value of the amount receivable, which wll generally be the expected cash amount to be distributed to the charity, can be reliably measured. 2.4 Expenditure All resources expended are recognised on an accruals basis. Support costs are apportioned by analysing the level of administration b'me required for each charitable activity. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Support costs are those functions that assist the work of the charity but do not directly relate to charitable activities. Support costs include back office Costs, finance, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated between the expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 6 and 7. Expenditure is recognised once there is a legal or conslru¢live obligation lo transfer economi¢ benefit to a third paty, it is probable that a transfer of economi¢ benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, Including support costs involved in undertaking each activity. Dire¢l costs atlributsble lo a single a¢livity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not atlributsble lo a single a¢livity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on direcUy undertaking the activities which further the group's objectives, as well as any associated support cost5. Page 21 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Icontinuedl 2.5 Intangible assets and amortisation Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured al cost less any accumulated amortisalion and any accumulated impairment losses. Amortisalion Is provided on intsngible assets al rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life. Amortisalion is provided on the following bases.. Website costs Course development 33 0/0 reducing balance straighl-line over 3 years 2.6 Tangible fixed assets and depreciation Tangible fixed assets are initially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliably shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Freehold property is initially recognised al cost. After recognition, under the revaluation model, freehold property whose fair value Can be measured reliably shall be carried at a revalued amount, being their fair value at the dale of revaluation less any subsequent accumulated depreciation and subsequent a¢¢umulaled impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date. Fair values are determined from markel-based evidence by appraisal that is nomialty undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tsngible fixed asset and it is rarely sold, except as part of a contributing business, a charity may need to estimate fair value using an income or depreciated replacement cost approach. Gains and losses on revaluation are recognised in the consolidated statement of financial a¢livilies, th a separate revaluation reserve being shown in the Statement of funds note. Al each reporting date the charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and ils value In use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Page 22 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Icontinuedl 2.6 Tangible fixed assets and depreciation Icontinuedl Depreciation is charged so as to all(Kate the cost of tangible fixed assets less their residual value over their estimated useful lives. Depreciation is not charged on freehold land and buildings as the charity has a policy of maintaining the propety to a high standard and accordingly the property has a high residual value and an indefinite useful life. Any depreciation that would be required would be immaterial. An annual impairment review Is conducted on the propety and in the event that an impairment was identified, this would be recognised as an impairment loss in the income and expenditure account. No depreciation is provided in respect of Examination and Teaching Collections of Gems and Stones as the charity has a policy of maintaining the colle¢lions to a high standard and accordingly the Collections have a high residual value and an indefinite useful life. Any depreciation that would be required would be immaterial. The Trustees consider annualty whether the value of the collection has been impaired. Depreciation is provided on the following bases.. Freehold land Fixtures and fittings Teaching stone collections not depreciated 20'/o and 33D/o reducing balance not depreciated Gains and losses on disposals are determined by comparing the proceeds with the carying amount and are re¢ognised in the ¢onsolidaled statement of financial activities. 2.7 Investments Investments in subsidiaries are valued al cost less provision for impairment. 2.8 Stocks Stocks represent gemstones, course notes, textbooks and scientific testing equipment. Stock is valued on an average cost basis and is staled al the lower of cost and eslimaled selling price less selling Costs. Cost Comprises direct materials and, where applicable, those overheads that have been incurred in bringing the stocks lo their present location and condition. 2.9 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Page 23 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Icontinuedl 2.10 Taxation The Association, a registered charity. is not liable to income tax or corporation lax on income derived from its charitable activities, as il falls within the various exemptions available lo registered charities. The Charity satisfies the lesls set out In the Finance Act 2010 and therefore Il meets the definition of a charitable Company for UK corporation tax purposes. Accordingly. the Charity is potentially exempt from taxation in respect of income or Capital gains received within categories Covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively lo Charitable purposes. The trading subsidiary donates an amount equal to its annual taxable profit. if any, under Gift Aid to its parent company, The Gemmologi¢al Association of Great Britain. During the year ended 31 December 2022, the donation amounted to £140,724 12021.. £156,063) and relates lo the profits earned in 2022 by the subsidiary. The trading subsidiaries adopt the following policies in respect of lax. The tax expense for the year comprises current and deferred tax. Tax is recognised in the corresponding profit and loss account, except that a charge attributable to an Item of income and expense recognised as other comprehensive income or lo an item recognised directly in equity Is also recognised in other comprehensive income or direcUy in equity respectively. Current lax is the amount of income lax payable in respect of taxable profit for the year or prior years. The current income tax charge is ¢al¢ulaled on the basis of tsx rates and laws that have been ena¢led or substsntively enacted by the balance sheet date in the countries where the company operates and generates income. Deferred tsx balances are re¢ognised in respe¢l of all timing differences that have originated but not reversed by the balance sheet date, except that. The recognition of deferred lax assets is limited lo the extent that il is probable that they will be recovered against the reversal of deferred tsx liabilities or other future taxable profits., and Any deferred lax balances are reversed if and when all conditions for retaining associated tax allowances have been mel. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tsx is recognised on the differences between the fair values of assets acquired and the future lax deductions available for them and the differences be￿een the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred lax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. 2.11 Financial instruments The group has elected to apply Sections 11 and 12 of FRS 102 in respect of fi'nancial instruments. Financial assets and financial liabilities are recognised when the group becomes paty lo the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according lo the substance of the conlraclual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. The group's policies for ils major classes of financial assets and financial liabilities are set out below. Page 24 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Icontinuedl Financial instruments {continued) Financial assets Basic financial assets. including trade and other debtors, cash and bank balances, intercompany working ¢apilal balances, and Intercompany financing are initially recognised al transaction price, unless the arrangement Constitutes a financing Iransa¢lion, where the Iransa¢lion is measured at the present value of the future re￿Ipts discounted at a market rate of interest for a similar debt instrument. Financing Iransa¢lions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. Financial liabilities Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured al the present value of the future payments discounted al a market rate of Interest for a similar debt instrument. Financing transactions are those in which payment Is deferred beyond normal business terms or is financed al a rate of interest that 15 not a market rate. Debt instruments are subsequently carried at amortlsed cost, using the effective interest rate method. Impairment of financial assets Financial assets measured al cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If obje¢live evidence of impairment is found, an impairment loss is recognised in the profit and loss account. For financial assets measured al cost less impairment, the impairment loss is measured as the difference be￿een the asset's Carrying amount and the best estimate of the amount the group would receive for the asset if it were lo be sold at the reporting date. For financial assets measured at amortised cost, the impairment loss is measured as the difference belween the asset's carrying amount and the present value of estimated cash flows discounted al the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rale for measuring any Impairment loss is the current effecb.ve Interest rate determined under the contract. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carying amount does not exceed what the carrying amount would have been had the Impairment not previously been recognised. The impairment reversal is re¢ognised in profit or loss. Page 25 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Icontinuedl Financial instruments {continued) Derecognition of financial assets and financial liabilities Financial assets are derecognised when (al the contractual rights to the cash flows from the asset expire or are sellled, or Ibl substantially all the risks and rewards of the ownership of the asset are transferred lo another paty or (¢1 despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. Financial liabilities are dere¢ognised when the liability is extinguished, that is when the conlraclual obligation is discharged, cancelled or expires. Offsetting of financial assets and financial liabilities Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention lo settle on a net basis or to realise the asset and settle the liabilty simultaneously. 2.12 Employee benefits The cost of any unused holiday entiuemenl is recognised in the period in which the employee's services are received. Termination benefits are re¢ognised immediately as an expense when the Association is demonstrably committed to terminate the employment of an employee or to provide lerminalion benefits. 2.13 Pensions Defined contribution pension plan The Company operates a defined contribution plan for ils employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company In independently administered funds. 2.14 Fund accounting General funds are unreslri¢led funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the group and which have not been designated for other purposes. Page 26 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Icontinuedl 2.15 Foreign currencies Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dales of the Iransa¢lions. Al each period end foreign currency monetary items are translated using the closing rate. Non- monetary Items measured al historical cost are translated using the exchange rate al the date of the transaction and non-monetsry Items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. 2.16 Basis of consolidation The consolidated financial stslements incorporate those of The Gemmologic81 Association of Great Britsin and all of its subsidiaries li.e. entities that the group controls through Ils power to govem the financial and operating policies so as lo obtain economic benefits). Subsidiaries acquired during the year are consolidated using the acquisition method. Their results are incorporated from the dale that control passes. All financial statements are made up to 31 December 2022. All inlra-group Iransa¢lions, balances and unrealised gains on transactions between group Companies are eliminated on ¢onsolidalion. Unrealised losses are also eliminated unless the transacb.on provides evidence of an impairment of the asset transferred. Transactions in currencies other than pounds sterling are recorded al the rates of exchange prevailing al the dales of the transactions. At each reporting end dale, monetary assets and liabilities that are denominated in foreign currencies are relransl8ted al the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the Consolidated statement of financial a¢livilies for the period. The accounts consolidate the results of the charity and its wholly owned subsidiaries, on a line by line basis. A separate statement of financial activities for the charity itself Is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies A¢1 2006. The charity has also taken advantage of the exemption afforded by section 1. 12 of FRS102 in not preparing a separate statement of cash flow for The Gemmological Associab'on of Great Britain as a separate entity. Page 27 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Critical accounting estimates and areas of judgement Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions.. The charity makes eslimales and assumptions conTrrning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Critical areas of judgement.. Valuation of property: the freehold property was revalued in 2023 on an open market basis as disclosed In note 15. Income from donations and legacies Unrestricted funds 2022 Total funds 2022 Total funds 2021 Legacies 3,020 Total 2021 3,020 3,020 Page 28 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Income from charitable activities Unrestricted funds 2022 Total funds 2022 Total funds 2021 Income from charitable activities 1,995,600 1.995.600 1,716,722 Total 2021 1,716,722 1,716,722 Membershlp Educatlon income income 2022 2022 Total funds 2022 Total funds 2021 Income from charitable activities 206,567 1,789,033 1.995.600 1,716,722 Total 2021 208,600 1,508,122 1,716,722 Page 29 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Expenditure The basis of allocation for expenditure is 15'/o to membership and 85,/0 to education. embership Education osts osts 2022 2022 Total funds 2022 Total funds 2021 Direct costs Service provision Bad debts Travel Printing, F)oslage and stationery Advertising Repairs Rates Insurance 111,039 11,1551 585 2,415 14,849 5,614 1,991 $,043 1,301 956 2,805 1,620 629,224 16,5441 3,312 13,686 84,146 31,811 11,285 34,241 7,370 5,418 15,898 9,178 740,263 17.699} 3,897 16,101 98,995 37.425 13,276 40,284 8,671 6.374 18,703 10,798 576,638 1,453 1,461 14,815 30,188 41,945 13,606 35,756 7,672 5,119 2,728 12,677 Cleaning Telephone Subscriptions Light and heat 148,063 839,025 987.088 744,058 Total 2021 111,608 632,450 744,058 Membership Education costs costs 2022 2022 Total funds 2022 Total funds 2021 Support and governanee costs Share of support costs Isee note 71 Share of governance costs (see note 7} 184,416 5,250 1,045,024 29,750 1.229.440 35,000 1,161,437 38,000 189,666 1,074,774 1.264,440 1,199,437 Total 2021 179,916 1,019,521 1,199,437 Page 30 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Charitable expenditure by activity embership Education osts osts 2022 2022 Total funds 2022 Total funds 2021 Charitable activities Support and govemance costs 148,063 189,666 839,025 1,074,774 987,088 1,264,440 744,058 1,199,437 337,729 1,913,799 2.251,528 1,943,495 Total 2021 291,524 1,651,971 1,943,495 Support and governance costs Support Governance costs costs 2022 2022 Total funds 2022 Total funds 2021 staff costs Depreciation and amortisalion Administration 887,843 38,050 224,896 887.843 38,050 224,896 35,000 11.500 80,939 794,941 61,244 241,579 25,000 13,000 63,673 Audit fees Accountancy Loan interest 35,000 11,500 80,939 1,231,728 46,500 1.278,228 1,199,437 Total 2021 1,161,437 38,000 1,199,437 Other gains and losses 2022 2021 Gain on revaluation of freehold propety 34,000 Page 31 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Auditorfs remuneration 2022 2021 Fees payable lo the charity's auditor for the audit of the charity's annual accounts 30,000 25,000 Fees payable lo the charity's auditor in respect of.. All non-audil services not included above 12.500 12,500 10. Staff costs Group 2022 Group 2021 Charity 2022 Charity 2021 Wages and salaries Social security costs Contribution to defined contribution pension Schemes 761.447 87,908 687,457 73,724 761.447 87,908 687,457 73,724 38,488 33,760 38,488 33,760 887,843 794,941 887,843 794,941 The average number of persons employed by the charity during the year was as follows.. Group 2022 No. Group 2021 No. Charity 2022 No. Charity 2021 No. Senior management Lecturers and administration General administration 10 10 10 10 18 18 The number of employees whose employee benefits (excluding employer pension costs) ex￿eded £60,000 was.. Group 2022 No. Group 2021 No. In the band £60,001 - £70,000 In the band £80,001- £90,000 In the band £90,001- £100,000 In the band £100,001 - £110,000 Remuneration and benefits received by key management personnel during the year amounted lo £239,93012021. £105,410). Page 32 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 11. Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefils12021 £NILI. During the year, no Trustee expenses have been incurred12021 £NILI. 12. Taxation 2022 2021 Corporation tax Foreign tax on ineome for the year 68,416 100,807 The lax assessed for the year is higher than12021 higher than} the standard rale of corporation lax in the UK of 19°/012021 19Yol. The differences are explained below.. 2022 2021 Nel income before tax 252,012 280,070 Nel income multiplied by the standard rale of corporation tax in the UK of 19 12021 190/01. Effects of: 47,882 53,213 Higher rale tsxes on overseas earnings Other diffe￿nCeS leading to an increaselldecreasel in the lax charge 20,534 69,422 122,0281 Totsl tsx charge for the year 68,416 100,607 From 1 April 2023, there is no longer a single Corporation Tax rate for non-ring fence profits. At the Spring Budget 2021, the government announced that the Corporation Tax main rale for non-ring fence profits would increase lo 250A for profi'ts above £250,000. A small profits rale of 190/0 was also announced for companies with profits of £50,000 or less. Companies with profits be￿een £50,000 and £250,000 will pay tsx al the main rate, reduced by a marginal relief. This provides a gradual increase in the effective Corporation Tax rate. Page 33 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 13. Intangible assets Group Course development Company website Goodwill Total Cost At 1 January 2022 Additions 82,751 11,699 21.056 69.174 172,981 11,699 At 31 December 2022 94,450 21,056 69,174 184,680 Amortisation At 1 January 2022 Charge for the year 61,451 8,895 14,956 2.033 69,173 145,580 10.928 At 31 December 2022 70,346 16,989 69.173 156.508 Net book value At 31 December 2022 24.104 4.067 28.172 At 31 December 2021 21,300 6,100 27,401 Page 34 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 13. Intangible assets {continued} Charity Course development Cost At 1 January 2022 Additions 82,751 11.699 At 31 December 2022 94,450 Amortisation At 1 January 2022 Charge for the year 61,451 8.895 At 31 December 2022 70.346 Net book value At 31 December 2022 24.104 At 31 December 2021 21,300 Page 35 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 14. Tangible fixed assets Group Examination and teaching collections Freehold Fixtures and property fittings Total Cost or valuation At 1 January 2022 Revaluations 3.566,000 34,000 403,176 108.164 4,077,340 34,000 At 31 December 2022 3.600,000 403,176 108.164 4,111.340 Depreciation At 1 January 2022 Charge for the year 313.708 27,120 313.708 27.120 At 31 December 2022 340,828 340,828 Net book value At 31 December 2022 3.600,000 62,348 108.164 3,770,512 At 31 December 2021 3,566,000 89,468 108,164 3,763,632 Page 36 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 14. Tangible fixed assets lcontinuedl Charity Examination and teaching Collections Freehold Fixtures and property fittings Total Cost or valuation At 1 January 2022 Revaluations 3.566,000 34,000 363,869 108,164 4,038,033 34.000 At 31 December 2022 3.600,000 363,869 108.164 4,072.033 Depreciation At 1 January 2022 Charge for the year 275,672 26,866 275,672 26,866 At 31 December 2022 302.538 302.538 Net book value At 31 December 2022 3,600,000 61,331 108,164 3,769,495 At 31 December 2021 3,566,000 88,197 108,164 3,762,361 The Charity owns a library of books and a collection of gems which meet the definition of heritage assets. The Trustees are of the opinion that there would be no benefit lo the Charity in incurring costs lo value the collections. These heritage assets have therefore not been recognised in the accounts. The freehold property was valued on 10 July 2023 by James Berfin & Associates, an independent and RICS qualified valuer, using market based evidence for similar properties sold in the area. The group has adopted a F)olicy of revaluation for tangible fixed assets. Had these assets been measured at historic cost, the carrying values would have been as follows". Group 2022 Group 2021 Charity 2022 Charity 2021 Freehold property 2.982.012 2,982,012 2.982.012 2,982,012 Page 37 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 15. Fixed asset investments Investments subsidiary companies Charity Cost At 1 January 2022 210.000 At 31 December 2022 210.000 Net book value At 31 December 2022 210.000 At 31 December 2021 210,000 Principal subsidiaries The following were subsidiary undertakings of the charity.. Names Registered office or principal place of business Class of Holding Included in share$ consolidation Gemmologieal Instruments Limited Gemmological Consulting (Beijingl Co. Limited England and Wales China Ordinary Ordinary 1000/0 Yes The financial results of the subsidiaries for the year were.. Ineome Expenditure ProfitllLossl Net as$et$l I Surplusl (Deficit) for the year Gemmologieal Instruments Limited Gemmologieal Consulting (Beijingl Co. Limited 815,982 669,761 1385,8771 1603,0561 430,105 66,705 1,612,315 1150,0241 The Association's wholly owned subsidiary, Gemmological Instruments Limited leompany number 008383241 provides books, equipment and sample gem materials primarily lo members and students. The subsidiary also received licensing income from ils Chinese subsidiary for the use of its study materials. Gemmological Consulting (Beijingl Co. Ltd is a wholly owned subsidiary of Gemmological Instruments Limited and provides educational courses and study materials in China. Page 38 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 16. Stocks Group 2022 Group 2021 Charity 2022 Charity 2021 Gemstones, course notes, textbooks and scientific testing equipment 173,831 161,123 49,446 51,151 17. Debtors Group 2022 Group 2021 Charity 2022 Charity 2021 Due wlthln one year Trade debtors Other debtors Prepayments and accrued income 96,915 17,266 71.502 30,918 36,740 52,100 24,266 1,356 69.750 6,429 1,305 53,761 185,683 119,758 95,372 61,495 18. Creditors: Amounts falling due within one year Group 2022 Group 2021 Charity 2022 Charity 2021 Bank overdrafts 361 437 361 437 Bank loans Trade creditors 138,103 43.351 138,103 197,102 138,103 43.890 656,303 29,663 1,707 601.739 138,103 171,411 519,415 30,215 1,087 557,360 Amounts owed lo group undertakings Other taxation and social security Other creditors Accruals and deferred income 35,269 35,236 839,928 7,083 765.565 989,103 1,246,075 1.471,766 1,418,028 Page 39 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Creditors: Amounts falling due within one year {continued} Group 2022 Group 2021 Charity 2022 Charity 2021 Deferred income brought forward Resources deferred during the year Amounts released from previous periods 510,678 524,742 1510.678} 488,786 513,721 1491,8291 510,678 524,742 1510.678} 488,786 513,721 1491,8291 524,742 510,678 524,742 510,678 Deferred income comprises advance payments for membership subscriptions and exams due in the next financial year. 19. Creditors: Amounts falling due after more than one year Group 2022 Group 2021 Charity 2022 Charity 2021 Bank loans 1,575,573 1,638,371 1,575,573 1,638,371 Included within the above are amounts falling due as follows.. Group 2022 Group 2021 Charity 2022 Charity 2021 Between one and two years Bank loans 138.104 138,102 138,104 138,102 Between two and five years Bank loans 414,310 552,413 414,310 552,413 Over fivo ygars Bank loans 1.023.159 947,856 1.023.159 947,856 The bank loan is repayable by 2038 and is secured by way of a fixed charge over the freehold property at 21 Ely Place, London, EC1 N 8TD. Inteost is fixed al 3.250/0 above the Bank of England base rate. Page 40 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 20. Ststement offunds ststement offunds- currentyear Balance at 31 Gainsl December (Lossesl 2022 Balance at 1 January 2022 Income Expenditure Taxation Unrestricted funds Unrestricted funds Property revaluation 1,887,003 2,987,749 {2,735,737} 168,4161 2,070,599 583.988 34.000 617.988 2,470,991 2,987,749 12,735,737) 168,4161 34,000 2,688,587 Statomont of funds - prior year Balance at 31 December 2021 Balance at 1 January 2021 Gainsl (Losses) Income Expenditure Taxation Unrestrlcted funds Unrestricted funds Propety revaluation 1,707,540 2,806,596 12,627,133) 1,887,003 583,988 583,988 2,291,528 2,806,598 12,627,133) 2,470,991 Page 41 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21. Summary of funds Summary of funds- current year Balance at 31 Gainsl December (Lossesl 2022 Balance at 1 January 2022 Income Expenditure Taxation General funds 2.470,991 2,987,749 12.735,737} 168,4161 34,000 2,688,587 Summary of funds- prior year Balance at 31 December 2021 Balance at 1 January 2021 Income Expenditure General funds 2,291,528 2,806,596 12,627,133) 2,470,991 22. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted funds 2022 Total funds 2022 Tangible fixed assets Intsngible fixed assets Current assets 3,770,512 3.770.512 28,172 28,172 1,454,579 1,454,579 1989,1031 {989.1031 11,575,573) 11.575.573) Creditors due within one year Creditors due in more than one year Total 2,688,587 2,688,587 Page 42 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 22. Analysis of net assets between funds {¢ontinuedl Analysis of net assets between funds - prior year Unreslricled funds 2021 Total funds 2021 Tangible fixed assets Intangible fixed assets Current assets 3,763,632 3,763,632 27,401 27,401 1,564,404 1,564,404 11,24S,0751 11,246,075) 11,638,371) 11,638,371) Creditors due within one year Creditors due in more than one year Total 2,470,991 2,470,991 23. Reconciliation of net rnovement in funds to net cash flow from operating activities Group 2022 Group 2021 Nel income for the year las per Statement of Financial Acliviliesl 183.596 179,463 Adjustments for: Depreciation charges Amortisation charges (Inc￿ase)1decrease in stocks Ilncreaselldecrease in debtors IDecreasellincrease in creditors 27.120 10.928 {12,708} 165,925) 1256.896} 30,525 30,719 45,555 40,468 284,113 Net cash provided byllused inl operating activities 1113.885} 610,843 24. Analysis of cash and cash equivalents Group 2022 Group 2021 Cash in hand Overdraft facility repayable on demand 1.095.065 {361} 1,283,523 14371 Total cash and cash equivalents 1,094,704 1,283,086 Page 43 DoGuSvJn Envelope ID." 07C6C54MF374F28-A067.AB6C78D103A9 THE GEMMOLOGICAL ASSOCIATION OF GREAT BR￿AIN IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 25. Analysis of changes in net debt At1 January 2022 Cash flov At31 December 2022 Cash at bank and in hand Bank overdrafts repayable on demand Debt due within 1 year Debt due after 1 year 1,283,523 14371 {138.1031 11,638,371) 1188,458} 1,095,065 76 13611 {138.1031 62,798 11,575.5731 {493.3881 1125,584} {618.9721 26. Pension commitments The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted lo £38,488 12021.. £33,760). Contributions tolalling £5,758 12021.. £5,967) were payable to the fund al the balance sheet date and are included in other creditors. 27. Operating lease commitments At 31 December 2022 the group and the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows.. Group 2022 Group 2021 Not later than 1 year Later than 1 year and not later than 5 years 10,645 1.759 11,048 12,404 12.404 23,450 Page 44