Charity Registiation No. 1116809 Company Registratl•M No. 05935028 (England and Wales) HAPPY CTrIILD INTERNATIONAL UNAUDrrED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 'A(klJTJIP• I410024 COMPANIES HOUSE
35
HAPPY CHILD INTERNATIONAL LEGAL AND ADMINISTRATIVE INFORMATION Trustees: John Doddrell MarkA Pinks John Herring aive Teuten Joao Martinez da Cruz Secretary.. Mark A Pinks Charity number: 1116809 Company nurnber.. 05935028 Principal address- The Leatherhead Institute 67 High Street Leatherhead Surrey 22 8AH United Kingdom Registered office: The Leatherhead Institute 67 High Street Leatherhead rrey KT22 BAH United Kingdom Independent examiner: Nitholaos loannou Kattirtzis IFCCAI NRM Accountancy Services Ltd 70 Wood Street London E17 3HT
HAPPY CHILD INTERNATIChyAL CONTENTS Trustees. Report Ilncorporating the DirectOTS' Report) 4-12 Independent Examinerfs Report Statement of Financial Artivities 14 Balance Sheet 15 Notes to the Accounts 16-18 Detailed Profit & Loss Account 19
HAPPY CHILD INfERNATIONAL TRUSTEES. REpoKf (Incorporating the Dirertorfs Report) FOR THE YEAR ENDED 31 December 2022 The Trustees present their report and accounts for the year ended 310ecember 2022. The accounts have been prepared in accordan with the accounting poliaes set out in note I to the accounts and comply with the Charity's Memorandum and Articles of Association. the Companies Act 2006 and Accounting and Reporting by Charities= the Ststement of Recommended Prartice applicable to charities preparing their accounts in accordance with the Financial ReportinE Standard applicable in the UK and Republic of Ireland IFRS 1021 las amended for accounting periods commencing from I'january 2019. Stiurtur4 governance and management The charity is a company limited by guarantee, incorporated on 14 September 2006, and registered as a charity on 28 November 2006. The company wa5 established under a rnernorandum of a550ciation which estsblished the objects and powers of the charitable company and is governed under its artides of association. A statement should be provided confirmin8 that the major risks to which the charity is exp05ed, as identified by the trustees, have been reviewed and systems or procedures have been established to manage those risks. All directors give their time vduntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 11 to the accounts. Trnstees The Trustees, who are a150 the dirertors for the purpose of Company law, and who served during the year were.. John Doddrell Mark Pinks John Herring Clive Teuten Joao Martinez da Cruz New Directors are appointed by a majority vote of the current Ix)ard ol dirertors. Directors are selected based on the skills possessed to fill a vacant post on the board. The board will invite a potential director to atterKI a meeting prior to their appointment.
An induction ProS5 exists to familiarise new directors with the operations and strategy of the charity. Director5 attend training Courses when a need is identified by the board. HAPPY CHILD INfERNATIONAL TRUSTEES, REPORT (Incorporatww the Dirertorfs Report) (contlnued) FOR THE YEAR ENDED 31 December 2022 The board of directors provides the stratlC direction of the charity. The board meets every other month to approve major decisions regarding events, comrnunicat10115 Wlth donors and the operational relationship with its partner organisations in Brazil. Happy Child Intemational assesses whether Its partners overseas meet all relevant legal requirements and follow good practice. Throughout this report.the Chariv will refer to Happy Child Intemational. The Directors are grateful to èll those who support the work in action. Eiving and prayer= stsff, for their dedication and cornmitment to the work of Happy Child International in 2022. Volunteers. during the year our volunteers continued to provide a vital contribution to the work of the charity. giwng their time, passion, and energy. Mostly our volunteers have helped with fundraising and support to the office and events. Supporters, who are individuals and thurches loyally partnering with the vision of Happy Child International. Rlsk Management The trustees accept that the management of risk is ultimately their responsibility and having examined the major strategic. business. and operational risks which the charity faces. confirm that appropriate control systems have been established to manage and mitigate and regularly review such risks as far as possible. Financial reserves Loss of key staff Happy Child International ceases to be financially viable Objertives and Artwities Public benefit focus on ensuring that our artlvltles achleve our charitable airns. The trustees review the aims. objectives. and artivities of the charity eath year. This review looks at what the charity has achieved and the outcomes of its work within the last twelve months. The directors consider the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The rewew also helps the trustees ensure the charity's aims. objective5 and artivities rernain focused on its stated purposes. The trustees have referred to the guidance contsined in the Charity Commission's general guidance on public benefit when reviewi the charity's airns and objectives and in planning
its future artivities. In particular. the dirertors consider how planned activities will ¢ontribute to the aims and objectives that have been seL HAPPY CTrIILD INTERNATIONAL TRUSTEES, REPORT (Incorpordting the Dirertorfs Reportl (contlnued) FOR THE YEAR ENDED 31 December 2022 Oblectlve of the Charity The Charity's objective IS'A child and family services charity organisation delivering advisory. ¢ampaignin8, advocacy and childcare services for the rescue and personal development of street children and children at risk from multiple threats. in partnership with govemments and other care agencies in the developing world,. We do this in the spirit of Christian charity and, at present. our geographical focus is Northeast Brazil. The Trystees have paid due regard to guidance issued by the Charity Commission in deoding what artiwties the charity should undertake. The ChariVs vlslon is"A wodd where every d)ild and youn8 person realises their full potential in safe and secure environmenv and its misslon is to"Enable change and transformation in the lives of children, young people and their families by supporting them to reach their full potential and break the cycle of extreme povertf. Through local partners. the Charity fosters immediate and lasting change in the lives of children. younE people, and their families by advocating for their right5 to education and opportunities, prevention of and protection from violence. and family care for them to break the cycle of poverty and realise their God given potential. Values of the Charity We are passionate about promoting and defending the rights of children. young people, and their familles. In the spirit of Christian tharity, we are committed to providing unconditional love and support to those we serve. We are Incluslve and strive to ensure that those we serve are heard and valued. We are cooperatlve in the way we work and partner with others. Priority themes and preferred ways of worklng The Charity work5 prinapally. but not exclusively• in partnership with local thurch partner5 in Northeast Brazil around.. Family care Prevention of and protertion from )riolen Education and Skills development
HAPPY CHILD INTERNATIONAL TRUSTEES, REPORT (IncOalatIng the Dirertorf5 Report) (tontinued) FOR THE YEAR ENDED 31 December 2022 Happy Chlld Intematlonafs Main Achievements in 2022 Localpy Led Projecls During 2022 Happy Child International continued to strive to work in a sustainable way to be able to reach children, young people, and their families in vuln.erable and high-risk communities in Northeast 8razil. Locally led project5 are helping the Charity deliver its refreshed strategy. As well as working with existing partners, the Charity also sLirted forging relationship5 Wlth new organisations and networks. In March 2022, both Chair of the Board (John Doddrelll and Operations Manager Icaroline Taylor) were able to visit some of the Charitys partner projects and meet their teams on the eround. Buildln8 the Happy Chlld Internatlonal team This year, the Charity has focused on expanding and strengthening its Board of Trustees further. In June 2022, Cristina Cortez joined the Board of Trustees, offering the Charity a wÈalth of knowledge and professional experience, having led the Latin American think tank"Canning House" for many years. This year, the Charity has also benefitted from engaging a new freelance Trusts and Foundation5 officer who has helped increase the level of funding received from this income stream. Communication5 and Fundraising The "Maos Dadas. (Giving Hands) network in Braiil continued to support Happy Child International's cornmunication5 work in 2022. The network produ5 a wide range of resources that are disseminated all over Brazil to support work with children and young people at risk. They have helped the Charity promote its brand through print media as well as digital methods. They have also helped the Charity to link up with additional like4ninded organisations in the country. induding national Christian NGOS and churches. Thi5 year. the HCI Board has focused on refreshing its Vision, Mission and Values statements. This has been an important process, given that the Charity is transitioning to a new way of working. working in close collaboration with local partner or8anisations. The Charivs income in 2022 was £67,150 thanks to the generosity of donors. loyal supporters, and partners, often giving sacrificially on a monthly basis, or by making regular one-off donations. This year. Happy Child International was honoured to be one of Mole Valley Councifsl charitie5 of the year. They held a SUC$ful Charity Dinner evenl in May which raised £4.81)O. In Julyfft a sponsored walk took place in London and raised £2.000. Towards the end of the year, the Charity held a fijndraising dinner event of its own at the Vincent Rooms, in London. whith enabled us to connett with existing and new supporters and raise an additional £1.500. The Christmas Appeal I'Dlshlng Out Tender Loving Car¥) also helped the Charity to largely reach the target of raising E2,000.
The Charity has not fully resumed all its core fundraising activities post-covid, includine the relaunth HAPPY CHILD INTERNATIONAL TRUSTEES, REPORT (Incorpordting the Dirertorfs Report) (contlnued) FOR THE YEAR ENDED 31 December 2022 of a community fundraising programrne in what is a very competitive Climate, affected by the cost- of-living crisis in the UK and across the world. Edueation and Opportunities In Brazil, children's access to educ*ion suffered during the Covid-19 pandemic. At the end of 2020, for example, 5 million girls aged 6 to 17 years old did not have access to education. Of these, over 40% were aged 6 to 10 years old, a group that prior to the pandemic had enjoyed full aCSS to education. Through one of our local partners. we are working in the community of Coque (Recife). supporting low- income families that are struggling to rnake ends meet. One of the main objectives is to provide supplementary education and opportunitie5 for children and young people from these families. In a newly refurbished comrnunity centre "school reinforcement dasses" are being provided through educational clubs to complement the school curriculum and schedule. The clubs are helping to pro)Ade a more equf(able education to its participants so that they are better able to meet age- appropriate educational development milestones. Rexhing 50 children twice a week, the Clubs also have the benefit of providing a safe space lor the children during the day. also allowing the children's parents to work and contribute to soaety in different ways. Other aspects of thi5 locally led project include supplementsry health care. Even though the state health care system has a wide reach, the reality is that the poorest and most marginalised often struggle to acce5S it. Extra community support can often alleviate minor health iueS and open-up pathway5 for more seriou5 conditions to be dealt with in the state system. This year. a voluntary Ear. Nose and Throat specialist has provided 27 appointments on a bi-monthly bas15 and the voluntary Paediatrician has provided 47 appointmerrts to children in the community. A voluntary psythologist has provided 39 appointments to adults and children. and thi5 has greatly supported the mental health needs of the familie5 in this community. All these interventions help to improve family-based care and benefit the children who are being reached locally. Happy Child International has also supported older children and young people through a Mentoring and Skills Programme run by another local partner. In Brazil in 2020. some 23.8 million young people from 15 to 29 years old were without higher education qualifications and had not been admitted to ollege or university or for vocational training IIBGE. 20201. The situation is particularly difficult for those from Iow-Fncome families. In this context, the Mentoring and Skills Training scheme addresses very real need and is heavily over4ubstribed. For the first half of 2022 the learning was delivered online due to the Covid-19 pandemic. and this was a huge struggle and challenge for the programme beneficiarie5. Some relied on thr mobile phones and others on family or friends to access the learning platForm. as homes have little access to IT. The training offered the prospect of a placement at the Gerdau Iron and Steel company either around Administration or Industrial Mechanics. At the close of 2022, 38 young people completed the training successfully, 21 secured paid employment, and the remaining young people are being supported tofind employmentvia otherd)annels. The Mentoring and Skills TrainIa programme will continue in 2023. benefitting another 40 young people
from low4ncome families. HAPPY CHILD INfERNATIChYAL TRUSTEES. REPORT Ilntorporatlng the Direc$ Report) (continued) FOR THE YEAR ENDED 31 December 2022 Preventlon of and Protectlon from Violence Children in the poorer communities of Brazil are at a higher risk of violence and abuse. Simply by offering opportunities to supplement their education through local partners, Happy Child International is helping to tske them off the streets and redu the risk of violence against them. Beyond that, the educational support they receive, coupled with adult support and mentoring, provides the potential for gaining employment, and reduces the likelihood of them being drawn into riskier behamours and situations. The young people participating in the Mentoring and Skills Programme are exceptionally talented and have the potential, with the support and encouragement of Happy Child International and our partners, to become leaders and a force for good in their communitie5. violen to girls and young wornen is particularly worrying and is dosely linked to the h'igh rates of teenage pregnancy that are prevalent in poor communitie5 in Brazil. Happy Child International has a long history of working to help girls who are subjected to abuse and other types of exploitstion and to support teenage mothers in caring for their babies. Family Ca The Covid-19 pandemic brought huge difficultie5 for poor families in many low-income communitie5 in Brazil. such as in the Coque community in Recife, which is served by one of our local partner5. Happy Child International has continued to enable its partner to provide food baskets and hygiene kits to dozens of carefully selected families. This significantly mitigated the risk of children and young people going hungry. Happy Child International has also been devdoping plan5 in 2022 to continue to address the issue of early teenage pregnancy. 8razil's teenage pregnancy rate is still above the global and Latin American average (Lancet, 20201. Trusted researth indicates that it is more often among gir15 living in poverty and those who are socially vulnerable. with less education. who will experience early teenage pregnancy. A multi-component preventative approach is being discussed and implemented with our partner organisations. Through our partners we also seek to infiuence government authorities and agencies at the municipal, regional and national leve15 on poliaes and decisions that affect children and young people from vulnerable communities. Part of this work is done in collaboration with Specialised Social Assistsnce Reference Centres Iknown in Brazil as CREASI, and other social assistance networks. Participation in these networks enables us and our partners to keep up to date with government policy concerning many of the issues that thildren and young people face in vulnerable communitie5 in the country. Researth and Advisory Servkes Thecharity is a memberof the Consortium for Street Children in the UK, whith is an organisation
advocating and campaigning for street connerted children around the world. Happy Child International lend5 it support to them and. when appropriate, through participating in events and HAPPY CHILD INTERNATIONAL TRUSTEES, REPORT {Incorporatlng the Directorfs Report) (continued) FOR THE YEAR ENDED 31 December 2022 conferences that they host as well as actively supporting their International Day for Street Children. 51rategic Priorities for 2023 Increase the number of children and young people participating and benefitine from locally- led and community-ba5ed partner programmes in Northeast Brazil. Expand the charl5 partner portfolio in Northeast Brazil. focusing on providing additional vocational training and employment opportunities to more young people in vulnerable and high risk comrnunitie5. as well as adopting a multi-component preventative approach to the prevention of teenage pregnanues. Strengthen the chariW5 capauty to raise funds for partner programme5 Wlth the support of more volunteers. community fundraising and local events, as well as from churches, trusts and foundations. io
HAPPY CHILD INTERNATIIJYAL TRUSTEES, REPORT Ilncorporating the Dirertorfs Report) Icontinued) FOR THE YEAR ENDED 31 Decernber 202Z Financial Review 2021 Artual £74.685 2022 Actual £80.553 Total Cost Cost of generating funds 50.795 46.837 Charitable activities 23,890 33,716 The economic climate for charitable fundraisine continues to be challenging, with income from donations and fundraising for the year totalling 61950 as compared to £98269 for the year ended 31 December 2021. Goin8 Concern The year ended with a deficit of £1340312021 surplus £31,684). Statemefit otTrusteerf Responsibilities The Trustees, who are also the Directors of Happy Child International for the purpose of company law, are responsible for preparing the Trustees, ReF)Ort and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the Trustees to prepare accounts for each financial year which Eive a true and fair view of the state of affairs of the Charity and of the incoming reSoUrS and application of resources, including the income and expendwture, of the chafitable company for that year. In preparine these accounts, the Trustees are required to: - select suitable accounting policies and then apply them consistently.- li
HAPPY CHILD INTERNATINAL TRUSTEES, REPORT Ilncorporating the Dirertorfs Report) Icontlnued) FOR THE YEAR ENDED 31 December 2022 - observe the methods and principles in the Charitys )Rp,. - rnake judgements and estimètes that are reasonable and prudent,. and - prepare the accounts on the going concern basis. unless it is inappropriate to presume that the Charity will continue to be in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy, at any time, the financial position of the Charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detertion of fraud and other irregularities. Independent Examinors The Board unanimously voted to appoint Nicholaos loannou Kattirtzis IFCCAI of NRM Accountancy Services Ltd to act a5 Independent Examiner for the 2022 accounts and are sure they will provide an excellent quality service in a cornpets'tive and cost-effective manner. On behalf of the Board of Trustees John Doddrell Trustee 12
HAPPY CHILD INfERNATIONAL INDEPENDENT EXAMINEVS REPORT TO THE TRUSTEES OF HAPPY CHILD INTERNATIONAL FOR THE YEAR ENDED 31 December 2022 I report on the accounts of the Charity for the year ended 31 December 2022 whith are set out on pages 13 to 13. Respectlve responslbilltles of tTUStees and examiner The Trustees. who are also the directors of Happy Child International for the purposes of company law, are responsible for the preparat40n of the accounts. The Trustees consider that an audit is not required forthis year under section 14412) of the Charities Art 2011, the 2011 Act. and that an independent examination is needed. l am qualified to undertake the examination being a qualified member of The Institute of Chartered Accountants in England and Wales. Having satisfied myself that the Charity Is not subject to audit under Part 16 of the Companies Art 2006 and is eligible for independent examination. it is my responsibility to.. lil examine the accounts under section 145 of the 2011 A¢ lill follow the procedures laid down in the general Directions given by the Charity Commission under settion 14515llbl of the 2011 Act.. and liiil state whether particular matters have come to my attention. Basis of independent examine¢s report My examination w35 Carried out in accordance with the General Directions given bythe Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any un¥Jsual items Of disclosures in the accounts and seeking explanations from You as trustee5 OnrnIng any such matter5. The procedures undertaken do not provide all the eviden that would be requifed in an audit and consequently no opinion is given as to whether the accounts present a *rue and fair view. and the report is limited to those matters set out in the ststement below. Independent examinerfs ststement In connection with my examination, no other matter except that referred to in the above paragraph has come to my attention which gives me reasonable cause to believe that in any material respect the requirements: lil to keep attountin8 records in accordance wtth section 386 of the Companies Art 2006: and lill to prepare accounts which accord with the accounting records. comply with the accounting requirements of 396 of the Companies Act 2006 and with the methods and principle5 of the Accounting and Reporting by Charitie5- Statement of Recommended Prartice applicable to charitie5 preparing their accounts in accordan with the Financial Reportin8 Standard applicable in the UK and Republic of Ireland IFRS 102} have not been met. Nicholaos loannou Kattirtzis IFCCAI NRM Accountancy Services Ltd 70 Wood Street E17 3HT
Dated.. HAPPY CHILD INTERNATIONAL STATEMENT OF FINANCIAL AcfiviTIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 December 2022 Unrtstricttd Rtstitted Funds Funds Totsl Total 2021 Notes Income Donations and legacie5 Activities for generating funds 6L413 5,691 61,413 5.691 71748 24881. 67.150 67,150 96,629 1.640 Income from charitable actimties Total Income 67,150 67.150 98,269 Costs of geneTatin8 funds Costs of generating voluntary income 44.642 44,642 2.195 40.746 46.837 46,837 40.746 EMpendr¢urt on Charitable artivilies Child and family care Se$ Thematic Advocacy & Campaigning Services Research & Advisory Services 5,7,8,9 33.716 31,990 1.950 Total expenditure on charitable activkies 80,553 80.553 33,940 Total expendRure ,553 .553 74.686 frlet Incomellexpenditure) for the yèarlNet Net movemert in funds 1ts,4031 11,3403) 23.584 Fund balan5 at ljanuary 2022 40,293 40,293 16,709 Fund balances at 31 December 2022 17 26,890 26.8 40293 14
HAPPY CHILD INTERNATIONAL BALANCE SHEEr AS AT 31 December 2022 2022 2022 2021 2021 Currwrt assets Debtors Cash at bank and in hand 13 5.674 37.225 28,836 11,946) 42,899 12.6061 Creditors= amounts falling due within one year 14 Totsl assets less current liabilitiès 26890 40,293 40.293 Credltors: amounts fallin after more than one the Net asset5 26.890 40293 In(ome Fund5 Restricted funds Unrestricted funds 26.890 40.293 The company is entitled to the exemption from the audit requirement contained in sertion 477 of the Companies Act 2006, for the year ended 31 December 2022. No member of the company has deposited a noticei pursuant to section 476, requiring an audit of these accounts. The Trustees acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the State of affair5 of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sertions 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relatine to accounts. so far as applicable to the company. These accounts have been prepared in accordan wtth the special provisions relating to srnall companies within Part 15 of the Companies Act 2006. The accounts were approved by the Board on ...-.....-.................... ....... John Doddrell
Trustee Company registration no. 05935028. Charity Registration no. 1116809 HAPPY CHILD INTERNATIONAL NOTES TO THE Accouf+lTS FOR THE YEAR ENDED 31 December 2022 l. Ac¢ouThtin8 Pollcies Ll Charity Infonnation Happy Child International is a private company limited by Euarantee incorporated in England and Wales. The registered office is The Leatherhead Institute, 67 High Street, Leatherhead, Surreyi KT22 8AH. L2 Accountin8 Convefttion The accounts have been prepared in accordan with the charity'5 article5 of association, the Companies Act 2006 and "Attounting and ReF)Orting by Charities: Statement of Recommended practi applicable to charibes preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" las amended for accounting periods commencing from l January 20161. The charity si a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterlingi whith 15 the functional currency of the charity. Monetary amounts in these finanaal statements are rounded to the nearest É. The accounts have been prepared under historical cost convention. The prinapal actounting policies adopted are set out below. L3 Incomlng resources Donations, legacies. and other forms of voluntary income are recognized as incoming resource5 when receivable. except insofar as they are incapable of financial measurement. Resources expended Resources expended are recognized in the period in whith they are inojrred. Resour5 expended include attributsble VAT which cannot be recovered. Expenditure is allocated on an accruals basis between the costs of Eenerating funds. dirert charitable expenditure, and the cost of governance of the charity- Administration costs are re-allocated to eath of the activities on the following basis which is an estimate, based on employee's time. of the amount attributable to each activitv. Costs of generating funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contribution5 to it. as well as the cost of any activities with fundraising purpose. Governance costs are the costs associated with the governance arrangements of the charity. These costs are assoaated with constitutional and statutory requirements and include anv COSts associated with the strategic management of the Charity's activities. 16
Grant funding is paid diredy to partnefs in Northeast Brazil as described in the Trustees, Report. HAPPY CHILD INTERNATIONAL NOTES TOTHE ACCOUNTS {Contlnued) FOR THE YEAR ENDED 311)ecember 2022 Accountln8 policies (Continued) Leaslng and hlre purchase commltments Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease. Restritted funds Restrirted funds are donations and other incoming resources received or generated for specific use within the Charitrfs purposes. Unrestrirted funds Unrestricted funds are donati¢)ns and other incorning resour reiVed or generated for the charitable purposes. L8 Flnanclal Instruments The charity has elected to apply the provisions of Section I 'Basi¢ Financial Instruments, and Sertion 12 '0ther Financial Instwments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provision5 of the instrument. Financial assets and liabilities are offset. with the net amounts Pfesented in the financial statements. when there is a legally enforable right to set off the recognised amounts and there is an intention to settle on a net ba5 or to reaSise the asset and settle the liability simultaneouslv. Basic linancial Instruments Basic financial assets, which include debtors and cash and bank balances, are initially measured at transartion Fyice induding transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement con financing transaction. where the transartion is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic linaneial liabli ities Basic financial liabilitie5. includirg credttors and bènk loans are initially recognised at transaction price unless the arrancement constitutes a financing transaction. where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities dassified as payable within one year are not amortised. 17
HAPPY CHILD INTERNATIONAL NOTES TO THE ACCOUNTS (Cofitlnued) FOR THE YEAR ENDED 31 December 2022 Accountin8 policie5 (Continued) Debt instruments are subsequently carried at amortised cost. using the effective interest rate method. Trade creditors are obligations to payfor goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classrfied as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditor5 are recoenised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derwition of financial liabllltles Financial liabilities are derecognised when the charity'5 contrartual obligations expire or are discharged or cancelled. L9 Critical aceouffttin8 estimates and judgements In the application of the charity's accounting policies. the trustee5 are required to make judgements. estimates and assumptions aboutthe carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and assotiated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised 26where the revision affects only that period, or in the period of the revision and future periods where the remsion affects both current and future periods. 1.10 Going concern Happy Child International had net assets of £26.89012021 net assets of £40,293> a5 at 31 December 2022. The Trustees are monitoring spending and cash flow regularly and implement steps to ensure that the charity can rneet its liabilities as and when they fall due. This gives the Trustees reason to conclude that Happy Child International is a goine concern as at 31 December 2022. 18
HAPPY CHILD INTERI¥ATIONAL Detailed Profit and Loss Account For the year ended 31 December 2022 Income: Donations Received 6L413 Inconw from Activities 67.104 Expended: Grnnts made 33.716 Wages and Salaries 26.541 Professtonal & Marketlng expenses UK 8n Travelling expenses L513 Office Rent 4,351 Telephone I,0 Intern & Websiie L222 Postage & Advertisin8 Professional & Marketln8 expenses Brazil 492 Subxriptions Bank Charges 438 Insurances 653 Sundry expenses 355 Accountan(y lees 960 80.S53 Bank Interest recelved Deficit for the year 13.403 19