Company registration number.. 03267722 Charity registralion number: 1120874 Respect for Animals Educational Trust Limited Annual Report and Financial St8tem¢nts for the Y¢aT Ended 31 Dcc¢mb¢r 2024 Atkinson Evans LirnÉted The Old Drill Hall l O Arnot Hill Road Arnold Nottingham NottinghamshTTe NCJ5 6tJ Respect for Animals Educatlonal Trust Limited Contents Reference and Athninlstrative Detai15 Strategic Report 2to4 Trustees, Repon 5107 Independent Examiner's Report 8t09 Statement of Financial Activiti¢s io Balance Sheet Notes lo the Financi81 Stat¢m¢nts 121021 Respect for Animals Educational Trust Limited Reference and Administrative Details Secretary Ms Nicola Roberta Brook5 Charlty Registration Number 1120874 Companv Reglstr*tjOD Number 03267722 Reglstered Office 30 Station Road Carlton Nottingham Noitinghamsbire NG4 3DL Independent Examiner Atkinson Evans Limited The Old Drill Hall 10 Arnol Hill Road Arnold Notlingham Nottinghamshire NG5 6U A¢¢ounlgnts Atkinson Evans Limited The Old Drill Hall 10 Arnol Hill Road Arnold Nollingham Nottingharnshire NG5 6LJ Page I Respect for Animals Educational Trust Llmited Strategic Report for the Year Ended 31 December 2024 The trustees, Wilo are directors for the purposes of company18w, present their stTalegic report for the year ended 31 December 2024. in compliance with $414C of the Companies Act 2006. Page 2 Respect for Animals Educational Trust Limited Strategic Report for the Year Ended 31 December 2024 Athievements and performance Respect for Animals Educaiional Trnsl (RfAET} continues its mission to end the cruel and unnecessary global fur trade. The killing of tens of millions of animals each year for their fur is uneihical, unnecessary, and indefensible. RfAET believes ihal moral progress is reflected in how nations treat their most vulnerable. and fur 'production' fails that test. Through peacefvl, evidence bascd campaigning, we remain commilt¢d io giving a voice lo the voiceless animals who suffer at ihe hands of the fur industy. Our na￿OW focus and coalition leadership allow RfAET to punch above ils weighi, driving legislative, consumer and co￿orate chang¢ across the UK and Europc and beyond. Fur Frcc UK Campaign RIAET continued io lead the campaign for a UK-wide ban on the import and sale of fur. We built new relationships ith minisiers and officia15 at DEFRA, urging publication of ihe long-ovcrdue results of its 2021 consultation into the fur trade. We supp¢)rted one of the most signcd Early Day Molions in ihe curyenl Parliament, calling for a total ban on fur imports and sales. We also attended events in Westminster to help build political momentum. Labour MP Ruth Jones tabled the Fur (Import and Sale) Bill as a Privale Members. Bill in Oclob¢r 2024, aiming lo prohibit all iTnports and sale of real fi￿, including mink, foxes. chinchilla. raccoon dog, and coyot¢ fur, 41nd closing long standing loopholes in UK law. The bill's sccond reading was scheduled for summer 2025. Respect for Animals worked closely wryth Ruth Jon¢s and aides in developing the content of the legislative text and the campaign plans to advance ih¢ Bill. Fur Free Europe Campaign RfAET remained al the forefront ol. lh¢ Fur Free Europe European Citizens Initiative, which gaihered over 1.5 million verified signatures and successfully pushed the issue onto the European Commission's legislative ag¢nda. Our legal opinion, published in 2021, was instrumental in pcr5uading the Coinmission Ihal an Eu-wtde ban on fur fam)ing and fur product sales is legally feasible, and remains highly relevant to the EC thinking on fur. In January 2024. RfAET presented detailed animal welfarc cvidcnLC al the fir.st EFSA stakeholder meeting on fvr farn)ing, representing the Fur Free Alliance. EFSA'S final scientific opinion, due in summer 2025. is hoped to provide the foundation for a proposal to ban fuT farniing and fur 5alcs across the European Union. Research gnd Reports In spring 2024, RfAET commissioned and co-author¢d an in-depth ￿lentIfIC review of the welfare of mink. foxes, raccoon dogs and chinchillas on European fur farms. Devcloped with Eurogroup for Animals, Fur Free Alliance and Four Paws, the rcport was submitted to EFSA to help shape ils upcoming scientifjc opinion. Our previously published reports, including The Case Against Fur Faclory Farming and our scientific critique of fur farnied cage enrichment, continue to be widely cited. They show that even so-¢alled "high welfare" fiw fanns systematically fail lo prevent serious animal suffering. Exposing the Industry RfAET collaborated ￿th Bclgian group CJAJA to reveal that luxury fashion conglomerate L VMH donated E300,01)O to the International Fur Federation. fjnancially supporting a global lobbying effort to prot¢¢t fanning. The exposé was reported in intemaiional media and highlighted ihe urgent need for tran.8parency and ethical accountdbility in the fashion sector. Page 3 Respect for Animals Educational Trust Limited Strategic Report for the Year Ended 31 December 2024 Retail Campaigns Through the Fur Free Retailer programme, RfAET helped secure fur free commitments from key retail¢rs and fashion brands. Our campaign supporting the Max Mara boycott played a decisive role in th¢ company's dcci5ion to go fi]r free, following an international effort that included prolcsts. a balloon over their lialian HQ. and more than 270.000 emails from ¢oncerned consumers. R£4E,T remains the UK administrator of Fur Fre¢ Retailer, the world's leading ecrtification initiative for ethical fur free faghion. With partners including H&M, New Look and Gucci, the programme continues to shift the indu.gtry away from fi￿. Global Partnerships and Coalitions RfAET plays a Icading role in international coalitions. We serve on tb¢ Executive Committee of th¢ Fur Free Alliance, where we are dls() thc elected Treasurer. We ¢o-¢hair the wc)rking group on EU policy, and are key members of the Trur Free Rctailer. fam)ing, fur sales, and corporate outreach worktng groups. We are proud members of Eurogroup fvT Animals, contributing to ils Fur Working Group and supporttng EU legislative action io end fur farnJin8 and marketing. Facts About Fur and Future Plans Our new website, Facis About Fur. will be launched in 2025 as a dedicated platfomi for verified statistics. trade dala and scientific analysis. De%igned as a global hub for journalists. policymakers. campaigners and consumers, it underpins our ambition lo become th¢ leading dala resource on ihe global fur industry. RfAET will continue to d¢v¢lop Facts Ai)out Fur, publish new reports and tsuppon campaigns across Europe, North America and Asia. Looking Ahead 10 2025 and Beyond RfAET Mryll continue supporting the EU campaigry especially EFSA'S report and subsequent European Commission proposalb. whilc upping pressure for a UK ban on fur imports and sales. Our data driven slralegy will bc accompanied by further scientific reports, retail monitoring. and expanded media exposure of the fur industry. This will be hosted and promoted on our ncw Facts About Fur website. We remain commiited to vur int¢rnational coalitions. espe¢ially through the Fur Free Alliance and Eurogroup for Animals. lo maintain and tmprove our efforts toward ending the global fvr trade. The strategi¢ r¢port wag approved by the trustees of the charity on 18 August 2025 and signed on its behalf by: Ms Nicola Roberta Brooks Company secretary and trnstee Page 4 Respect for Animals Educational Trust Limited Trustees, Report Th¢ trustees, who are dir￿torS for the purposes of company law, present the annual report together with the finan￿1￿] statemenis of the charitable company for the year ended 31 December 2024. Objectlves and aetivities Public benefit To advan¢¢ the education of the public in the subject of the care and treatment of aDirna15 and eonsequent implicaliuns for the environment. ecology and biodiversity. The trustees confirm that they have complied wilh the requirements of section 17 of the Charities Act 2011 to have due rcgard io the public benefit guidance published by the Charity Commission for England and Wales. Trustees and offlcers The trustees and offi¢¢rs serving during the year and since the year end were as follows: Trustees.. Ms Nicola Roberta Brooks Mr Mark Glover S Creamer Secrelary-. Ms Ni¢ola Roberta Brooks Strueture, governance And management Natmre ofgoverning document The charity is controlled by its governing document, a deed of trust. and conslitules a limited company, limited by guarantee, as defined by the Companies Act 2006. Financial Instruments Objeclives andpolieie.¥ The ¢harity's activities expose it lo a number of financial risks including credit risk. ¢ash flow risk and liquidtty risk. The use of financial derivatives is governed by Ihe Charity's policies approved by Ihe board of Iruslee5, which provide WTbtt¢n principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes. Cashflow risk The charity's activities expose it primarily to the financial risks of changes in foreign currency exchange tales and interest rates. The charity uses foreign exchange forward contracts and inlerest rate swap conlracts to hedge these exposures. Inlerest bearing assets and liabilities are held al fixed raie to ensure certatnly of cash flows. Page 5 Respect for Animals Educational Trust Limited Trustees, Report Credil risk The charity's principal financial assets are bank balances and cash, trade and other re¢eivables, and investments. The charity's credit risk is primarily artributable to its trade receivables. The amounts presented in the balanc¢ sheel are net of allowances for dc)ubiful receivables. An allowance for impairnienl is made where there is an identified loss event which, based on previous experience, is el'idence of a reduction in the recoverability of Ihe cash flows. Th¢ ¢redil risk on liquid funds and derivative financial instruments is limited because the countcrparties are banks with hi¥h credit-ratings assigned by inlernational credil-raltng agencies. The charity has no signifi¢anl concentration of credit risK with exposure spread over a large number of ¢ounterparties and cuslomcr5. Liquidity risk In ordeT to maintain liquidity lo ensure that suiTicient funds are ayailable for ongoing operations and future developments, Ihe charity uses a mixlurc of long-lem) and short-term debt financc. Further dctails regarding liquidity risk can be found in the Statement of accounting policies in Ihe financial stslements. Statement of trustees, responsibilities The truslee.q {who are also the direciors of Respect for Animals Educational Trust Limited for the purFKJSes of company lawl are r¢sponsible for preparing the INstees' report and the financial statements in accordance wilh applicable law and United Kingdnm Accounting Siandard8 (United Kingdom Generally A¢¢epled Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees mubl not approve the financial slalements unle4s Ihcy are salisfied that thcy give a true and fair view of the state of affairs of the charitable company and of thc incoming resources and appli¢ation of resources, including its income and expenditure, of the ¢haritable company for that period. In preparing these financial slaternents. the In￿{eeS are required to.. select Suitable a¢¢ounting policies and apply them consistently; observe the meihods and principles in the Chariiies SORP.. make judgements and estimaieb that are reasonable and prudent- state whether applicable accounting standards, comprising FRS 102 have be¢n followed. subj¢¢l to any material departures disclosed and explaincd in the financial statements. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees arc responsible for keeping PTop¢r accounting records that Can disclose with reasonable accuracy at any limc ihe financial position of the charitable cumpany and enable Ihcm tu ensure that the financial statement.% COTnply with the Companies Act 2006. They arc also responsible for safeguarding the as5et5 of the charitable company and hence for taking rcasonable st¢ps for the prevenlton and detectlOD of fraud and other irregularities. The tru%tee% arc responsible for Ihc maintenance and integrity of the ¢orporate and financial inforniation includ¢d on the charitable company's website. Legislation goveming the preparation and dissemination of financial ststements may differ from legislation in other jurisdi¢tions. Page 6 Respect for Animals Educational Trust Limited Trustees, Report The annual report Wos approved by the trnste¥S of the charity on 18 August 2025 and signed on ils behalf by: Ms Nicola Rob¢rta Brooks Company secretary and trustee Pag¢ 7 Respect for Animals Educational Trust Limited Independent Examiner's Report to the trustees of Respect for Animals Educational Trust Limited ('the Companv'} I report to the charity trustees on my ¢x&mination of the accounls of the Company for the year ended 31 December 2024. Responsibilities and basis of report As ihe charity's trusle¢s of the Company (and also its directors for the purposes of ¢ompany lawl you are responsible for ihe preparation of ihe accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Aci,). Having satisfied myself that the a¢counls of the Company are not required to be audited under Part 16 of the 2006 Acl and are eligible for independent examinat?on, I report in respecl of my examination of your charity's accounts as carried oui under sectiTrn 145 of the Chariiies Aci 2011 ('the 2011 A¢l'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5Kb) of the 2011 Act. An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does noi cover all thc matters that an auditor considers tn giving their opinion on ihe accounts. The planning and conduct of an audit goe% beyond the limited assurance that an indepcndent examination Can provide. Consequenily l express no opinion as lo whether the accounts present a 'true and fair. view and my report is limited to those specific matters set out in the independent examin¢r's statement. Independent exgminer's statement L have completed my examination. I confirn) that no matters have come to my attention in connection with the examination giving me cause to believe: accounting records were not kepi in respect of Respect for Animals Educational Twst Limited as required by section 386 of the 2006 Act: or 2. the accounts do not accord with those r¢¢ords' or 3. the ac¢ounts do not comply with the ac¢ounting requiremenis of section 396 of the 2006 Act other than any requircmcnl that the accounts give A 'true and fair vi¢w' which is not M matter considered as part of an independent examination. or 4. the accounis hai'¢ not been prepared in accordanc¢ w&th the methods and principles of th¢ Statement of Rccommended Practice for alcvuniing and reporting by charities lapplicable to charities preparing their accounts in accordanee with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102)]. I have no concerns and have come across no other matters in connection with the examination to whi¢h attention should be drawn in Ihis report in order lo enable a proper understanding olihe accounts to b¢ reached. Pag¢ 8 Respect for Animals Educational Trust Limited Independent Examiner's Report to the trustees of Respect for Animals Educational Trust Limited ('the Company,) Jason F.van5 FCCA Aikinson Evans Limiled The Old Drill Hall l O Arnot Hill Road Arnold Nottingham Noitinghamshire N(i5 6LJ 18 August 2025 Page 9 Respect for Animals Educational Trust Limited Statement of Financial Activities for the Year Ended 31 December 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Restricted fynds Total 2U24 Note Income and Endowments Irom: Donations and le8a¢ies Investment income 217,629 3.245 217.629 3.245 Totsl income 220.874 220.874 Expenditure on: Charitsble activtties (40,117) (40,117 Total expendiiure {40.117 40,117 Net Incom¢ 180.757 180,757 Net movemeni in fijnds 180,757 180,757 Reconciliation of funds Total funds brought fonvard 83,234 1.867 85,101 Total fijnds carried fonvard 12 263,991 1,867 Restricted funds 265.858 Tolal 2023 Unrestricted fuDds Note Income and Endowments from: Donaiions and Icga¢ies Investment income 19,642 2,095 19,642 2.095 Total income 21,737 21.737 Expendlture on: Charitable a¢tivities {33,293) (33,293) Total expendilure (33,293) (33.2931 Net expenditure (11.556) {11.556) Nel movement in funds (11.556) (11.556) Rtconciliation of fund$ Tolal fimds brought foNard 94.789 1,867 96,656 Total funds carried forward 12 83.233 1.867 85.100 All of the charity's aciivities derive from continutng operations during the above two periods. The fi￿dS breakdown for 2023 is shown in nole 12. The notes on pages 12 to 21 fomi an integral part of thes¢ financial slaiements. Page 10 Respect for Animals Educational Trust Limited (Registration number: 03267722) Balance Sheet as at 31 December 2024 2024 2023 Note Current asset$ D¢biors Cdsh at bank and in hand 370 281,847 10 86.376 282.217 86,376 Creditors: Amounts falling due within one ve*r 116,359) 1,276 Net 115set5 265,858 85.100 Funds of the chgrity: Restrlcted income funds Restricie(l fill)ds ,867 1.867 Unrestricted income funds Unrestricted ￿ndS 263,991 83,233 Total funds 265.858 85,100 For the financial year ending 31 December 2024 the charity was entitled io exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Dire¢lors' responsibilities= The members have not required ihe charity to obtain an audit of its accounts for the year in question in accordance with 5cclion 476: and The directors acknowledge their responsibilities tor complying with the requircmenls of the Act wilh r¢$p¢¢t to accounting recordb ynd the preparation of accounts. The financial statements on pages 10 to 21 were approved by the trustees. and authorised for issue on 18 Augusl 2025 and signed on (heir behalf by: Ms Nicola Robcrta Brooks Company secretary and trustee The notes on pages 12 to 21 form an integral part of these financial statements. Page 11 Respect for Animals Educational Trust Limited Notes to the Financial Statements for the Year Ended 31 December 2024 I Charity st#tU5 The charity is limited by share capitsl, incorporated in The address of ils registered office is.. 30 Station Road Carlton Nottingham Nottinghamshire NG4 3DL These financial statements were authorised for issue by the trustees on 18 Augusr 2025. 2 Accounting pollcies Summary of slgnifican¢ accounting policies key accountlng e5tima¢es The principal accounting policies applied in the preparali(In of these financial statements are set out below. These policies have been consistenily applied to all the years presented, unless otherwise staled. Statement of compllance The fmancial Siaten)cnts have been prepar¢d in accordance ￿ryth Accounting and Reporting by C.harities'. Sialcmenl of Recommended PracticL lappli¢able lo charities prcparing their accounts in accordance wilh the Financial Reporting Siandard applicable in ihe UK and Republic of Ireland (FRS 10211 {issued in October 2019) - (Charities SORP IFRS 102)), the Financial Reporting Standard applicabl¢ in the UK aDd Republic of Ireland (FRS 102) and the Cc)mpanies Acl 2006. Bas15 of preparatlon Respect for Animals Educational Trust Limited meets the definition of a public benefit entity undcr FRS 102. Assets and liabilities ar¢ initially r￿QgniSed #t bistorical coll or transaction value unless otherwry5e stat¢d in the relevant accounting policy noles. Going coD¢ern The trustees consider that there are no matcrial uncenainiies about the charity's ability lo continue as a goin8 concern nor any significant areas of uncertainty that affeci the carrying value of assets held by the charity. Income and endoTh'ment5 All incom¢ is rccognised once the charity has entitlement to the income. it is probable that the income will be received and the amount of the income receivable can be measured rcliably. Pag¢ 12 Respect for Animals Educational Trust Limited Notes to the Financial Statements for the Year Ended 31 December 2024 Dtsndtions and leRiicies Donations are recognised when the ¢h&rity ha5 becTJ notified in writing of both the amounl and settlement date. In the eveni that a donation is subject to conditions that require a level of perfornwice by the charity before the charity is entitled to the funds. the incc)me 15 d¢ferrcd and not recognised until either (hose cc)ndili()ns arc fully mel. or the fuifilmenl of those condiiions is wholly within thc control of lh¢ charity and il is probable that thcsc conditions be fulfilled in ihe reporting period. Legacy gifts arc recognised on a case by case basis followryng the prant of probafe when the administratorlexecutor for ihe estate ha% ¢ommuniLai¢d in writing both the amount and settlement date. In the event thai ihc gift is in the forni of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable wilh a degTee of reasonable accuracy and the title io the assei having bccn transferrcd to ihe charity. Inveslmgni income Dividends are recognised on¢e the dividend has been declared and notification has been received of the dividend due. Expendlture All expendilurc is recO￿lSed once there is a legal or ¢onstTU¢tiv¢ obligation lo that expenditure, il is probable seiilcmenl is rcquircd and Ihc amounl can bc measured reliably. All costs are allocated to the applicable expenditur¢ heading that ag8regat¢ similar costs to that category. Where costs cannot be direcily aitribuied io particular headings (hey have been alloLaled on a basis con51Stent with the use of resources. with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support ¢osls are allo¢ated based on Ihe spread of s￿ff costs. Charilable activities Charitsble expenditure comprises those costs incuThed by thc charity in thc delivery of its activities and services for its bcnefiLiarics. It includes both costs that can be allocated directly to such activities and those cosis of an indirect nature necessary lo gupporl them. Support costs Support costs includc central functions and have been allocated to activity cost categories on a basis consistent with Ihe use of resources. for example, allocating property cosis by floor areas, or per capita. stsff costs by the time spent and oiher ¢osls by their usage. Governance costs These include the costs attribuiable to the charity's compliance with constitutional and statulory requirements. including audit. strdlegi¢ managemenl and tTUStees meetings and reimbursed expenses. Page 13 Respect for Animals Educational Trust Limited Notes to the Financial Statements for the Year Ended 31 December 2024 Taxation Th¢ charity is considercd to pass the tests set oul in Paragraph I Schedule 6 of the Finance Act 201 O and therefore il mcets the definition of a chariiable company for UK corporation tax purposes. Accordingly. the charity is potentially exempt from taxation in respect of incomc or capitsl gains received within categories covered by Chapter 3 Part I of Ihc Corporation Tax Act 201 O or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such income or gains are applied exclusively to ¢harilable purposes. Trade debtors Trade debtors gre amounts due from customers for merchandise sold or services perfonned in ihe ordinary course of business. Trade debtors are recognised inttially at the transaction price. They are subsequ¢nily measured at amortised cost Using the effcclive ini¢re51 method. less provision for impairni¢nl. A provision for the impaim)enl of trade debiors is eslablished when ihcre is objectivc evidence ihat the charity will not be ablc to collect All amounts due according to the original tem)s of the receivables. Cash and cash equivalents Cash and ¢a5h equivalenis comprise cash on hand lind call dew)sils. and other short-tenn highly liquid investments that are Tcadily convertible lo a know) amount of cash and are subj¢¢t lo an insignificant risk of change in value. Borrowings Interest-bearing borrowings are initially recorded at fair value, ne,, of transaction costs. Inlerest-bearing borrowings are subsequently carried at amortised cost. with the difference between the proceeds. net of transactton costs, and the amount due on redempiion being r¢cognised as a charge to the Sthtement of Financial Activities over the period of the r¢levant bo￿0￿￿ng. Intcrest expense is recognised on the basis of the effective inlerest method and is included in interest payable and similar charge%. Borromryngs are Llassified as current liabiliiies unless the chariiy has an unconditional right to defer sertlement of the liability for at least t￿,elve months after ihe reporting dale. Page 14 Respect for Animals Educational Trust Limited Notes to the FinancRal Statements for the Year Ended 31 December 2024 Foreign exchdnge Transactions in foreign currencies aTC recorded at the rate of exchange al the dale of ihe transaction. Monetary assets and liabilities denoininated in foreign currencies al ihe balance sheei date are reported at the raies of exchange prevailing at Ihat date. Th¢ resulis of overseas operation5 are translaled at the average rates of ex¢hange during Ihe period and their balance sheets at the rates ruling at the balanc¢ sheet dale. Exchange differences arising on translation of th¢ opening net assets and I'￿sU11.8 of overseas operations are reported in other comprehensive income and accumulated ill equily (attributcd to non-controlling interests as appropriate). Other exchange diff¢renc¢s are recognised in Ihe Statement of Financial Actii-ities in the period in which they arise except for.. l ) exchange differences on transactions entered into to hedge certain foreign cuThency risks (see above); 2) exchange differences arising on gains or losses on non-monetsry it¢ms whi¢h are recognised in other comprehensive income: and 3) in the case of the consolidated financial staterncnts. exchangc differences on monetary itenLS receivable from or payable to a foreign operation lur which seiilemenl is neither planned nor likcly to OCLur {Iherefore fc)rniing part of the net investment in the foreign operation). which ar¢ recogniscd in oth¢r ¢ompreh¢nsive tncom¢ and reported under equity. Fund structure Unrestricted income funds are general funds thal are available for ￿se at the trusl¢¢s discretion in fi￿h¢rance of the objeclives of the charity. Restricted income funds are those donaied for use in a particular area or for specific purposes. the use of which is restricted to that area or purpos¢. Fin*nci*l instruments Cl4s.sifiea¢ion Financial asseis and financial liabilities are recognised when thc charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according 10 the substance of the ¢ontrd¢tual a￿angeMentS entered into. An equity instrument is any contract ihat eviden¢¢s a residual interest in Ihe assels of the charity after d¢ducling all of its liabilities. Page 15 Respect for Animals Educational Trust Limited Notes to the Financial Statements for the Year Ended 3] December 2024 Recognilion and measuremenl All finan¢ial as%ets' and liabilities are initially measured at transaclton price (including transaction cosls), except for those financial a55et5 classified as at fair value through profil or loss. which are initially measured at fair value {which is norn￿1]Y ih¢ transaciion price excluding transaction costs). unless the arrangement con51itules a financing transaction. If an arrangement con5titutCs a financing transaction, the financial assei or financial liability is measured al the presenl value of the future payments dtscounted at a market rale of interest for a similar debt instniment. Financial assets and liabilities are only offset tn the statemcnl of financial position when, and only whcD ihere exists a legally enforceable right 10 Set off Ihc rccognised amounts and the charity inlcnds either to seitle on a net basi5, or to reali5e the asset and settle Ihe liability simultaneously. Financial assets are derecogni5ed when and only when a) Ihe contractual rights to the cash flows from the financial asset expire or are settled. b} the charity transfers to another parry substantially all of the risks and rewards of 0￿￿ership of the financial asset. or c) the charity, despite having retained som¢, but not all. significant risks and rewards of owThcrship. has transferred control of the asset to another party. Financ1411 liabililies are derecognised only when the obligation specified in the contract is discharged, Cancelled or expires. Page 16 Respect for Animals Educational Trust Limited Notes to the Financial Statements for the Year Ended 31 December 2024 Debi inslruments D¢bi inblrumenLg which meet the following conditions are subsequently measured at amortised wsl using the cffcctive intcresl method= (al The contractual return to the holdcr is (i) a fixcd amount., (ill a positive fixed rale or a positive variable rate,. or (iiil a Combination of a positive (pr a negative fixed rate and a positive variable raie. (b) The contract may provide for repayments of the nrincip