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•
I410￿024
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 Pro￿S5 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 strat￿lC 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 (IncO￿alatIng 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 produ￿5 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 aC￿SS 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 i￿ueS 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 th￿r 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 TrainI￿a 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 charl￿5 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 reSoUr￿S 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 INTERNATI￿NAL
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
On￿rnIng 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 balan￿5 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. Resour￿5
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￿ re￿iVed 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 enfor￿able right to set off the recognised amounts and
there is an intention to settle on a net ba￿5 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