WILLIAM FREDERICK JOHN BLACKFORD DECEASED
TRUSTEES’ ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 5 APRIL 2022
CHARITY REGISTRATION NUMBER: 1120809
WILLIAM FREDERICK JOHN BLACKFORD DECEASED CONTENTS YEAR ENDED 5 APRIL 2022
| Page | |
|---|---|
| Reference and administration details | 1 |
| Trustees’ annual report | 2 – 6 |
| Independent examiner’s report | 7 |
| Statement of financial activities | 8 |
| Balance sheet | 9 |
| Notes to the accounts | 10 – 14 |
WILLIAM FREDERICK JOHN BLACKFORD DECEASED REFERENCE AND ADMINSTRATION DETAILS YEAR ENDED 5 APRIL 2022
| Trustees | I D Penny |
|---|---|
| A R J Penny | |
| Principal address | 1 Westward Business Centre |
| Mill Street | |
| Crediton | |
| Devon | |
| EX17 1HB | |
| Independent examiner | Michelle Ferris BSc (Hons) FCA DChA |
| Albert Goodman LLP | |
| Goodwood House | |
| Blackbrook Park Avenue | |
| Taunton | |
| Somerset | |
| TA1 2PX |
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2022
The Trustees present their Report for the year ended 5th April 2022.
REFERENCE AND ADMINISTRATION DETAILS
Details of the charity’s Trustees, advisors and other reference and administration details are given on page 1.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Description of the Charity’s governing document
W F J Blackford Trust is governed by a Will dated 5th July 1989, and Probate which was granted on 15th December 2000. The Trust effectively came into being in March 2006 on the sale of the property of the late W F J Blackford. Formal charitable status was achieved on 7th September 2007.
Trustee selection methods
The Trustees were originally the Executors of the late W F J Blackford’s Will. They were appointed as Trustees when the Trust effectively came into being upon the disposal of the property, part of the deceased’s Estate. There has been no change to the Trustees and the current Trustees are Mr Ian Penny of Gilbert Stephens LLP (formerly Veitch Penny LLP) and Mr Alex Penny.
OBJECTIVES AND ACTIVITIES
Summary of the objects of the charity set out in its governing document
W F J Blackford Trust is a Trust that sets out to apply available funds, in such a manner that the Trustees think fit, for or towards the upkeep and repair of the Parish Church of St. John the Baptist in Witheridge, Devon, and also for the maintenance of the graveyard and monuments of the said Church. Through undertaking this ongoing maintenance, the Trust sets out to encourage the occupation and use of the Church as a place of public worship, for the benefit of the Parishioners and the wider community.
Summary of the main activities in relation to these objects
During the course of the year the Trustees have again paid due regard to the Charity Commission’s guidance on public benefits. As in previous years, the majority of expenditure undertaken by the Trustees was in respect of repair work to the Church and general upkeep of the Church grounds. The Trustees have additionally made available grants to carry out day to day repairs and maintenance and outgoings within the Church.
The effects of the Coronavirus pandemic continue to impact on funding for the Church and in response the Trustees have extended the period during which they agree to contribute to ongoing costs within the Church, such as heating and electricity. It is hoped that the position will be reviewed as Church finances improve in future, but in the interim the Trustees are cognisant of the fact that PCC funds continue to be severely restricted owing to lower attendances at services and the unavailability of some artists and choirs for fund-raising activities post-Covid.
However, owing to the lifting of restrictions, it was possible to return to the usual position of quarterly Trustee meetings and the Trustees were kept fully in the picture by the PCC with regard to ongoing commitments to the Church.
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2022
Summary of the main achievements of the charity during the year
The adverse effects of the Coronavirus pandemic have continued to take their toll on church finances. There was a slow start to reach the pre-Covid level of money raising activities. This was attributable, in part, to lower attendances at Church services and some artists and choirs being unavailable for concerts and other fundraising activities. In response to this, the Trustees have continued to help the Church to meet its running costs in the interests of enhancing the general environment within the church and contributing to its maintenance and upkeep.
During the course of the year the Trustees made payments to the PCC in respect of both electricity and oil, in recognition of the difficulties faced in conventional fund raising.
Payments paid out by the Trustees during the course of the year were limited and no expenditure on capital items was required.
Investment Policy
During the year, excess cash held on deposit (£80,000) has been allocated to the Charles Stanley portfolio as the trustees have foreseen no large capital expenditures in the near term.
The 21/22 tax year has been a difficult period for financial markets. Inflation has increased significantly, this is in part due to the large stimulus packages deployed by various nations throughout the Covid pandemic, but also due to the war between Russia/Ukraine and China’s zero Covid policy. Higher inflation will in general lead to higher interest rates which was the case throughout the year. Higher interest rates are damaging to corporate profits as well as the value of fixed interest investments which have seen losses in the period in question.
Some respite from the poor conditions has been found within the FTSE 100 which has performed well. The performance can be attributed to the index being heavily weighted towards Oil and Gas, Health Care, Financials and Consumer Staples; many of which tend to prosper in an environment where monetary conditions are deteriorating.
| 05.04.22 | 05.04.21 | |
|---|---|---|
| BNY Mellon | 707,319 | 641,340 |
| M&G Charifund | 205,515 | 191,555 |
| J Edward Sellars | ||
| (previously with Fidelity in 20/21) | 374,998 | 403,255 |
| Charles Stanley | 381,281 | 308,019 |
| 1,669,113 |
1,544,169 | |
| Cash Holdings | 46,260 | 118,309 |
| 1,715,373 | 1,662,478 |
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2022
Income received on investment holdings
| Charles Stanley | 13,760 |
|---|---|
| Fidelity | 354 |
| J Edward Sellars | 1,309 |
| M&G Charifund | 9,930 |
| New Growth (BNY Mellon) | 15,739 |
| 41,092 |
By and large, the structure of the capital investments remains unaltered apart from the addition to the Charles Stanley portfolio. The constituent parts of the trust follow a medium risk approach. This is made up of the Charles Stanley portfolio as a higher risk element and the J Edward Sellars portfolio managed on a lower risk basis. The funds held with M&G and BNY Mellon sit between the two bringing the sum of all parts to a medium level of risk.
Charles Stanley Portfolio
The Charles Stanley portfolio has seen a modest decline within the period which is a positive outcome given the prevailing conditions. This portfolio predominantly invests in shares within the FTSE 100 although does include a small number of collective investments and FTSE 250 companies. The portfolio has held up well due its FTSE 100 holdings and due to having limited exposure to Europe and the US which have not performed as well in this 12-month period.
J Edward Sellars Portfolio
This portfolio is made up of lower risk diversified basket of collective investments to gain exposure to other geographical regions and asset classes.
The portfolio has seen a decline in capital value within the period which can be attributed to a lower allocation to the UK in place of a greater number of Fixed Interest holdings and exposure to the US and Europe. On most occasions, Fixed Interest is negatively correlated to Equity which gives a level of support when Equity markets decline. Due to the changing monetary conditions, this relationship has broken down and most asset classes have fallen in tandem, it is expected the previous relationships between investments will resume when we see interest rate expectation stabilise.
M &G Charifund
The fund has continued to provide a healthy income stream for the trust and has also seen capital appreciation over the period.
The fund invests in 100 UK Equities which provide dividend payments greater than the FTSE All-Share Index average. Dividend paying companies have performed well in the period as they are usually less reliant on debt. As they are less reliant on debt, they are less affected by rising interest rates.
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2022
BNY Mellon Growth & Income for Charities
We have seen a good level of capital appreciation and income from the fund across the period. Whilst the fund is unconstrained as to asset classes and geographical regions it can invest in, there is a bias towards FTSE 100 Equities. The fund has focused on Oil and Gas, Health Care, Financials and Consumer Staples which as mentioned earlier in this report, have provided most of the gains in global markets throughout the period.
The capital investments continue to yield sufficient income to cover day to day requirements at the church and this has been particularly endorsed during the past year when the Trustees have assisted the PCC with additional contributions to running expenses.
Change of Financial Adviser
For many years, the overall lead Financial Adviser to the Trustees had been the Professional Financial Centre. This business was in fact sold and has now become part of the J Edward Sellars partnership. In light of this the Trustees transferred the shares held in the Fidelity portfolio over to JES to manage on a discretionary basis moving forward.
The rationale here was that the Trustees were happy with the overall split on investment holdings, but JES offered a discretionary service and the Trustees felt this would be more appropriate on a forward basis, in line with the portfolio managed by Charles Stanley stockbrokers.
Cash Reserves
At 5 April 2022 the cash reserves stood at £46,260. Whilst interest rates remain low, the Trustees were hopeful that ongoing contract work would soon be able to resume and therefore felt comfortable holding this sum. It was also to be utilised to cover ongoing maintenance costs as agreed.
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2022
Financial Review
During the year, the value of the Charity’s investments increased by £124,944 to £1,669,112 (2021: £1,544,168) and the income earned from the investments amounted to £41,092 (2021: £36,008), with total expenditure for the year of £47,101 (2021: £27,878).
The Charity recognised an overall surplus for the year of £54,900, after an investment revaluation gain of £60,898 (2021: surplus of £265,085 after an investment revaluation gain of £256,955).
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with 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 Practice).
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements, and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed/constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Declaration
The trustees declare that they have approved the Trustees’ report above.
Signed on behalf of the charity’s trustees
I D Penny
Date: 31 January 2023
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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF WILLIAM FREDERICK JOHN BLACKFORD DECEASED FOR THE YEAR ENDED 5 APRIL 2022
Independent examiner’s report to the trustees of William Frederick John Blackford Deceased
I report to the trustees on my examination of the accounts of the William Frederick John Blackford Deceased (‘the Trust’) for the year ended 5 April 2022.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Michelle Ferris BSc (Hons) FCA DChA Albert Goodman LLP Goodwood House Blackbrook Park Avenue Taunton Somerset TA1 2PX
Date: 31 January 2023
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| Funds | Funds | ||
| 2022 | 2021 | ||
| Note | £ | £ | |
| Income | |||
| Investment income: | |||
| Bank interest | 11 | 5,420 | |
| Dividends received | 41,092 | 30,588 | |
| ────── | ────── | ||
| Total income | 41,103 | 36,008 | |
| ────── | ────── | ||
| Expenditure | |||
| Raising funds | 2 | 17,788 | 5,330 |
| Charitable activities | 3 | 29,313 | 22,548 |
| ────── | ────── | ||
| Total expenditure | 47,101 | 27,878 | |
| ────── | ────── | ||
| Net income/(expenditure) before | |||
| investment (losses)/gains | (5,998) | 8,130 | |
| Gains/ (losses) on investments | 60,898 | 256,955 | |
| ────── | ────── | ||
| Net movements in funds | 54,900 | 265,085 | |
| Total funds brought forward | 1,660,745 | 1,395,660 | |
| ────── | ────── | ||
| Total funds carried forward | 1,715,645 ~~──────~~ |
1,660,745 ~~──────~~ |
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED BALANCE SHEET AS AT 5 APRIL 2022
| Note | 2022 | 2021 | |||
|---|---|---|---|---|---|
| £ | £ | ||||
| Fixed assets | |||||
| Investments | 4 | 1,669,113 | 1,544,169 | ||
| Current assets | |||||
| Debtors and prepayments | 5 | 6,042 | 3,427 | ||
| Cash at bank and in hand | 46,260 | 118,309 | |||
| ────── | ────── | ||||
| 52,302 | 121,736 | ||||
| Creditors: amounts falling | |||||
| due within one year | 6 | (5,770) | (5,160) | ||
| ────── | ────── | ||||
| Net current assets | 46,532 | 116,576 | |||
| ────── | ────── | ||||
| Net assets | 1,715,645 ~~──────~~ |
1,660,745 ~~──────~~ |
|||
| Represented by: | |||||
| Unrestricted funds | 1,715,645 ~~──────~~ |
1,660,745 ~~──────~~ |
The accounts were approved by the Trustees on 31 January 2023
I D Penny On Behalf of the Board of Trustees
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022
1 Accounting policies
Basis of accounting
The financial statements have been prepared in £ sterling on the historical cost basis and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)).
The charity 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 stated in the relevant accounting policy.
Income
These are included gross of related expenditure in the Statement of Financial Activities (‘SoFA’) when the charity becomes entitled to the resources, is virtually certain they will receive the resources, and can measure the monetary value with sufficient reliability.
Investment income is recognised on a receivable basis.
Investment gains and losses include any gain or loss on the sale of investments, and any gain or loss resulting from revaluing investments to market value at the end of the year.
Income from tax reclaims are included in the SoFA at the same time as the interest to which they relate.
Expenditure
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include costs of the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters.
Fixed asset investments
Investments are recognised initially at fair value which is normally the transaction price (but excludes any transactions costs). Subsequently, investments are held at market value, with all realised and unrealised gains and losses passing through the SoFA.
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022
Accounting policies (continued)
Realised gains and losses
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (or purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities.
Debtors
Trade debtors and other debtors are recognised at the settlement amount due.
Cash at bank and in hand
Cash at bank and in hand comprise of cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Creditors
Creditors and provisions are recognised where the Trust has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.
Taxation
The Trust is a registered charity and is exempt from taxation on its income and gains where they are applied for charitable purposes. The Trust’s tax exempt status was confirmed by H M Revenue & Customs on 6 August 2009.
Fund accounting policy
All funds held by the Trust are:-
- Unrestricted – these funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Financial instruments
The charity only holds basic financial instruments as defined in FRS 102. The financial assets and liabilities of the charity and their measurements are as follows:
Financial assets – debtors and accrued income are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 10. Investment portfolios are basic financial instruments measured at fair value through the income and expenditure account.
Cash at bank and deposit accounts– is classified as a basic financial instrument and is measured at face value.
Financial liabilities – trade creditors and accruals are financial instruments, and are measured at amortised cost as detailed in note 10.
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022
2 Raising funds
| 3 4 |
2022 2021 £ £ Investment management costs Financial advice 763 920 Portfolio management charges 17,025 4,410 ────── ────── 17,788 5,330 ~~──────~~ ~~──────~~ Charitable activities 2022 2021 £ £ Repairs to Church - 10,440 Repairs to grounds and monument 3,400 2,796 Church utilities reimbursements 15,438 - Insurance 571 545 Governance costs 9,904 8,767 ────── ────── 29,313 22,548 ~~──────~~ ~~──────~~ Included within Governance costs 2022 2021 £ £ Legal charges 8,400 7,200 Accountancy 1,004 1,067 Independent examination 500 500 ────── ────── 9,904 8,767 ~~──────~~ ~~──────~~ Investments 2022 2021 £ £ Listed shares 1,641,335 1,526,469 Cash held by investment manager 27,778 17,700 ────── ────── 1,669,113 1,544,169 ~~──────~~ ~~──────~~ Represented by: Global Growth & Income Fund for Charities 707,319 641,340 Charles Stanley – Investment portfolio 381,281 308,019 J E Sellars – Investment portfolio 374,998 403,255 M & G Investments - Charifund 205,515 191,555 ────── ────── 1,669,113 1,544,169 ~~──────~~ ~~──────~~ |
|---|---|
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022
Listed Shares
| 5 6 |
2022 2021 £ £ Market value At 6 April 2021 1,526,469 1,262,162 Additions 726,267 48,340 Disposals (672,299) (46,903) Income re-invested - 7,739 Portfolio management charges - (1,824) Unrealised & realised (losses)/gains 60,898 256,955 ────── ────── At 5 April 2022 1,641,335 1,526,469 ~~──────~~ ~~──────~~ Debtors and prepayments 2022 2021 £ £ Debtors and accrued income 6,042 3,427 ~~──────~~ ~~──────~~ Creditors and accruals 2022 2021 £ £ Accruals 5,770 5,160 ~~──────~~ ~~──────~~ |
|---|---|
7 Trustees’ and employee remuneration
(2021: none).
The trust has no employees, and hence no key management personnel and none that receive remuneration of over £60,000 (2021: none).
8 Related party transactions
I D Penny, a trustee, is a consultant of Veitch Penny Solicitors (part of Gilbert Stephens LLP). During the year the trust paid Veitch Penny £8,400 (2021: £7,200) for legal services. At the year-end, £4,200 was due to Veitch Penny (2021: £3,600).
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WILLIAM FREDERICK JOHN BLACKFORD DECEASED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022
9 Analysis of net assets between funds
| Unrestricted | Total | |
|---|---|---|
| funds | 2022 | |
| £ | £ | |
| Fixed assets | 1,669,113 | 1,669,113 |
| Debtors | 6,042 | 6,042 |
| Cash at bank and in hand | 46,260 | 46,260 |
| Creditors due within one year | (5,770) | (5,770) |
| ────── | ────── | |
| 1,715,645 ~~──────~~ |
1,715,645 ~~──────~~ |
|
| Analysis of net assets between funds - 2021 | ||
| Unrestricted | Total | |
| funds | 2021 | |
| £ | £ | |
| Fixed assets | 1,544,169 | 1,544,169 |
| Debtors | 3,427 | 3,427 |
| Cash at bank and in hand | 118,309 | 118,309 |
| Creditors due within one year | (5,160) | (5,160) |
| ────── | ────── | |
| 1,660,745 ~~──────~~ |
1,660,745 ~~──────~~ |
|
| Financial instruments | ||
| Categorisation of financial instruments | ||
| 2022 | 2021 | |
| £ | £ | |
| Financial assets measured at fair value through the | ||
| income and expenditure account | 1,641,335 | 1,526,469 |
| Financial assets that are debt instruments measure | ||
| at amortised cost | 80,080 | 139,436 |
| ────── | ────── | |
| 1,721,415 ~~──────~~ |
1,664,905 ~~──────~~ |
|
| Financial liabilities measured at amortised cost | 5,770 ~~──────~~ |
5,160 ~~──────~~ |
| Item of income, expenditure, gain or losses | ||
| Income | Net gains | |
| 2022 | £ | £ |
| Financial assets measured at fair value through the | ||
| income and expenditure account | 41,092 ~~──────~~ |
60,898 ~~──────~~ |
Income |
Net gains |
|
| 2021 | £ | £ |
| Financial assets measured at fair value through the | ||
| income and expenditure account | 36,008 ~~──────~~ |
256,955 ~~──────~~ |
10 Financial instruments
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