Company registration number: 09705732
Charity number: 1167737
The Theosophical Society in England Charitable Company limited by guarantee
Financial statements
30 September 2022
The Theosophical Society in England Charitable Company limited by guarantee
Contents
| Page | |
|---|---|
| Directors and other information | 1 |
| Directors’ & Trustees’ report | 2 - 4 |
| Independent auditor's report | 5 - 7 |
| Statement of financial activities | 8 |
| Statement of financial position | 9 |
| Statement of cash flows | 10 |
| 11 - 16 | |
| Notes to the financial statements |
The Theosophical Society in England Charitable Company limited by guarantee
Directors and other Information
Directors/Trustees J. Baker E. Crofts N. Hart E. McGough P Brierley N Crofts P El-Hosaini D Scothern T Wyatt Charity number 1167737 Company number 09705732 Registered office 50 Gloucester Place London WIU 8EA Auditor Mercer & Hole LLP 21 Lombard Street London EC3V 9AH
Page 1
The Theosophical Society in England Charitable Company limited by guarantee
Directors’ & Trustees’ report Year ended 30 September 2022
The Directors (who are also trustees of the charity for the purposes of the Charities Act) present their annual report together with the audited financial statements of The Theosophical Society in England for the year ended 30 September 2022. The Directors confirm that the annual report and financial statements of the company comply with the Companies Act 2006 and Charities Act 2011, the requirements of the company's governing document and the provisions of the Charities SORP 2019 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).
Directors/Trustees
The directors/trustees who served the company during the year were as follows:
J. Baker
S.M. Bayliss (resigned 23 April 2022)
E. Crofts
N. Hart
S. Johnson (resigned 23 April 2022)
P Soteriou (appointed on 23 April 2022 and resigned 9 May 2022)
E. McGough
M. Jenkinson (resigned 10 October 2021) P Brierley (appointed 23 April 2022) N Crofts (appointed 23 April 2022) P El-Hosaini (appointed 23 April 2022) D Scothern (appointed 23 April 2022) T Wyatt (appointed 23 April 2022)
Objectives
The objects of the Society are for the public benefit to promote moral and spiritual welfare, and the advancement of education, through the promotion and study of Theosophy, and the dissemination of the results of such study to the public.
To further its Charitable Objects, The Theosophical Society in England may:
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provide and assist in the provision of money, materials or other help;
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organise and assist in the provision of conferences, courses of instruction, exhibitions, lectures and other educational activities;
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publish and distribute instructional and other materials on any medium;
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promote, encourage, carry out or commission research, surveys, studies, or other work, making the relevant results available;
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provide or procure the provision of counselling and guidance;
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provide or procure the provision of advice;
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alone or with other organisations seek to influence public opinion and make representations to and seek to influence governmental and other bodies and institutions regarding the reform, development and implementation of appropriate policies, legislation, and regulations, provided that all such activities shall be confined to those which an English and Welsh charity may properly undertake
Principles
The Society, while reserving for each member full freedom to interpret those teachings known as Theosophy, is dedicated to preserving and realising the Ageless Wisdom, which embodies both a world view and a vision of human selftransformation.
Page 2
The Theosophical Society in England Charitable Company limited by guarantee
Directors’ & Trustees’ report Year ended 30 September 2022
The Theosophical Tradition is founded upon certain fundamental propositions which include:
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Recognition of the unique value of every living being, expresses itself in reverence for life, compassion for all, sympathy with the need of individuals to find truth for themselves, and respect for every religious tradition. The ways in which these ideals become realities in individual life are both the privileged choice and the responsibility of every human being.
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Central to the concerns of Theosophy is the desire to promote understanding and fellowship among people of all races, nationalities, philosophies, and religions. Therefore, all people, whatever their religious affiliations or gender, are invited to participate equally in the life and work of the Society. The Theosophical Society imposes no dogmas, but points toward the source of unity beyond all differences. Devotion to Truth, love for all living beings, and a commitment to a life of active altruism are the marks of a true Theosophist.
Summary of Activities
Its activities include the holding of lectures, seminars, residential summer schools and study groups for the promotion and study of the Society’s classical objects. The Society has an active programme of events at its headquarters in London and supports similar events throughout the country, supported by authorised national speakers. The Society provides regular conferences and summer schools within its buildings and at other venues. Where possible, lectures are recorded for the benefit of those unable to attend. In addition, there are two web-based open learning courses, a Foundation Diploma and Higher Diploma in Theosophy, which are designed to assist students' understanding of the basic Principles of Theosophy. These are provided through flexible online learning, ongoing tutorial support, and an end of year examination. Grants and bursaries are available.
In promotion of its Charitable Objects, the Society regularly publishes a free quality magazine which has a wide circulation through a subscribers’ mailing list, and it is available at centres of theosophical activity and many other public outlets. Current and past issues are posted on the Society’s website. The Society has an active website which promotes its objects, events and activities and aids the study of theosophy through articles and videos and appropriate links to other relevant sources. Other web-based activities include social media such as Facebook and YouTube. The Society’s headquarters has a comprehensive lending library on theosophy and related esoteric subjects.
Governance
The Society is a registered charity governed by its Articles of Association. Trustees and National Officers are selected and appointed by the provisions of the Articles and Byelaws and are subject to election by a national council. The national council consists of councillors elected by the Society’s membership. The charity is managed by its Board of Trustees and National Officers. Trustees and Officers have received Trustees’ training on the duties and responsibilities of Trustees and the requirements of charity commission guidance and charity law, and a Trustees and Directors Handbook has been provided.
Funding and Financial Review
The Society has a fund balance of £9,067,582. Assets are held for the fulfilment of the Society’s charitable objectives and have been sourced through donations, legacies and a previous transfer of assets from The Theosophical Society Unincorporated Association and related entities. The Charity is undertaking an ongoing review of its financial processes, future planning, and reserves, and external consultants have been appointed to assist with this process. Directors have no concerns about the continuation of the Charity.
Page 3
The Theosophical Society in England Charitable Company limited by guarantee
Directors’ & Trustees’ report Year ended 30 September 2022
Directors/trustees responsibilities statement
The directors are responsible for preparing the directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that year.
In preparing these financial statements, the directors are required to:
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select suitable accounting policies and then apply them consistently; and
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make judgments and accounting estimates that are reasonable and prudent; and
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observe the methods and principles in the charities SORP; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the company’s auditor is unaware; and
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they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information.
The company’s auditor, Mercer & Hole, incorporated on 1 October 2022 to become Mercer & Hole LLP. The directors have consented to treating the incorporation of Mercer & Hole LLP as a continuation of the existing audit arrangement and in accordance with the company's articles, a resolution proposing that Mercer & Hole LLP be reappointed as auditor of the company will be put at a General Meeting.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small company’s exemption
This report was approved by the board of directors on ……………………… and signed on behalf of the board by:
J Baker Director
Page 4
The Theosophical Society in England Charitable Company limited by guarantee
Independent auditor’s report to the members of The Theosophical Society in England Year ended 30 September 2022
Opinion
We have audited the financial statements of The Theosophical Society in England (the Charitable company) for the year ended 30 September 2022 which comprise the statement of financial activities, statement of financial position, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 30 September 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated, if we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 5
The Theosophical Society in England Charitable Company limited by guarantee
Independent auditors report to the members of The Theosophical Society in England (continued) Year ended 30 September 2022
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the directors' report within the trustees’ report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relations to which the Companies Act 2006 require us to report to you if, in our opinion:
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the financial statements are not in agreement with the accounting records and the returns; or
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the charitable company has not kept adequate accounting records; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the members were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditors responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
We gained an understanding of the legal and regulatory framework applicable to the charity and industry in which it operates and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Charities Act 2011 and Charities SORP (FRS 102).
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure, and management bias in accounting estimates.
Page 6
The Theosophical Society in England Charitable Company limited by guarantee
Independent auditor's report to the members of The Theosophical Society in England (Continued) Year ended 30 September 2022
Audit procedures performed by the engagement team included:
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discussions with management, including considerations of known or suspected instances of non-compliance with laws and regulations and fraud;
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evaluation of the operating effectiveness of management's controls designed to prevent and detect irregularities;
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• identifying and testing journal entries.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of the auditor’s report.
Use of our Report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might State to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Crook BA ACA (Senior Statutory Auditor)
For and on behalf of Mercer & Hole LLP Chartered Accountants and Statutory Auditor 21 Lombard Street London EC3V 9AH
Date: 20 April 2023
Page 7
The Theosophical Society in England Charitable Company limited by guarantee
Statement of financial activities Year ended 30 September 2022
| Note Income and endowment from: Donations and legacies Investment Activities Other income Expenditure on: Staff costs Other expenditure Net (losses)/gains on investments 11 Net gains on revaluation of Investment properties 10 Net (outgoing)/incoming resources Other recognised gains and losses Loss on revaluation of freehold property 9 Net movement in funds Fund balance at 1 October 2021 Transfer between funds Fund balance at 30 September 2022 |
Unrestricted Funds Unrestricted Funds 2022 2021 £ £ 118,574 120,586 240,005 207,954 75,005 31,927 –––––––– –––––––– 433,584 360,467 (137,411) (140,990) (277,981) (236,490) –––––––– –––––––– (415,392) (377,480) (387,749) 539,028 65,000 - –––––––– –––––––– (304,557) 522,015 (155,000) - –––––––– –––––––– (459,557) 522,015 |
|---|---|
| 9,527,139 9,005,124 - - |
|
| 9,067,582 9,527,139 |
All the activities of the company are from continuing operations.
The Statement of Financial Activities includes all gains and losses recognised in the year.
The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
The notes on pages 11 to 16 form part of these financial statements.
Page 8
The Theosophical Society in England Charitable Company limited by guarantee
Statement of financial position 30 September 2022
| Note Fixed assets Intangible assets 8 Tangible assets Investment properties 9 10 Investments 11 Current assets Stocks Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Net Assets Funds Staff retirement Designated Fund Life Membership Subscription Designated Fund Unrestricted funds Total funds |
2022 £ 14,290 2,982,366 2,225,000 3,762,930 19,914 16,685 111,493 148,092 (65,096) |
£ 8,984,586 82,996 9,067,582 9,067,582 - - 9,067,582 9,067,582 |
2021 £ 16,038 3,144,085 2,160,000 4,150,679 20,291 26,409 73,872 120,572 (64,235) |
£ 9,470,802 56,337 |
|---|---|---|---|---|
| 9,527,139 | ||||
| 9,527,139 | ||||
| - - 9,527,139 |
||||
| 9,527,139 |
These financial statements have been prepared in accordance with the provisions applicable to companies’ subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
These financial statements were approved by the board of directors and authorised for issue on ……………… and are signed on behalf of the board by:
J Baker Director
Company registration number: 09705732
The notes on pages 11 to 16 form part of these financial statements.
Page 9
The Theosophical Society in England Charitable Company limited by guarantee
Statement of cash flows 30 September 2022
| Notes Cash flows from operating activities Cash (absorbed by) operations 17 Investing activities Purchase of intangible assets Purchase of tangible fixed assets Proceeds on disposal of other investments Investment income received Net cash generated from investing activities Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2022 £ - (1,591) - 125,630 |
£ (86,418) 124,039 - 37,621 73,872 111,493 |
2021 £ (12,524) (3,702) 40,713 98,599 |
£ (65,531) 123,086 - |
|---|---|---|---|---|
| 57,555 16,317 |
||||
| 73,872 |
The notes on pages 11 to 16 form part of these financial statements.
Page 10
The Theosophical Society in England Charitable Company limited by guarantee
Notes to the financial statements
Year ended 30 September 2022
1. General information
The charitable company is limited by guarantee and registered in England. The address of the registered office is 50 Gloucester Place, London, W1U 8EA.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
The financial statements have been prepared in accordance with the charitable company’s governing document, the Companies Act 2006 and “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) 2019. The Charity is a Public Benefit Entity as defined by FRS 102.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Fund accounting – unrestricted funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Tangible assets
Tangible assets are initially recorded at cost and are subsequently stated at cost less any accumulated depreciation and impairment losses
Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation, gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - No depreciation provided, residual value is at least fair value Fixtures, fittings & equipment - 25% straight line
The notes on pages 11 to 16 form part of these financial statements.
Page 11
The Theosophical Society in England Charitable Company limited by guarantee
Notes to the financial statements (continued) Year ended 30 September 2022
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Intangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Trademarks - 10% straight line
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
Fixed asset investments
Fixed asset investments are initially recorded at cost and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value, with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist where the carrying value 'exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
When it is not possible to estimate the recoverable amount of an individual asset an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost or net realisable value. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Financial Instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
The notes on pages 11 to 16 form part of these financial statements.
Page 12
The Theosophical Society in England
Charitable Company limited by guarantee
Notes to the financial statements (continued) Year ended 30 September 2022
Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Taxation
The charity is an exempt charity within the meaning of schedule 3 Of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure are sufficient with the level of reserves for the charity to be able to continue as a going concern.
4. Judgements and key sources of estimation uncertainty
In the application of the charity’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Investment property valuation
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost. Subsequently it is measured at fair value at the reporting end date. This fair value is estimated by the directors based on prevailing fair values for similar properties. Periodically professional valuations are undertaken to ensure the accuracy of these estimates.
Tangible fixed asset valuation
Freehold property is initially recognised at cost and subsequently is measured at fair value at the reporting end date. This fair value is estimated by the directors based on prevailing fair values for similar properties. Periodically professional valuations are undertaken to ensure the accuracy of these estimates.
The notes on pages 11 to 16 form part of these financial statements.
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The Theosophical Society in England Charitable Company limited by guarantee
Notes to the financial statements (continued) Year ended 30 September 2022
5. Limited by guarantee
The company is a private company limited by guarantee and has no share capital. In the event of winding up the members’ liability is restricted to £1.
6. Staff costs
The average number of persons employed by the company during the year amounted to 3 (2021: 3).
The aggregate payroll costs incurred during the year were:
| Wages and salaries No employee received total employee benefits of more than £60,000. |
2022 2021 £ £ 111,415 111,378 |
|---|---|
7. Auditor’s remuneration
| Profit before taxation is stated after charging: Fees payable for the audit of the financial statements 8. Intangible Assets Cost At 1 October 2021 Additions At 30 September 2022 Amortisation At 1 October 2021 Charge for the year At 30 September 2022 Carrying amount At 30 September 2022 At 1 October 2021 |
2022 £ 9,120 Trademarks £ 17,482 - 17,482 1,444 1,748 3,192 14,290 16,038 |
2021 £ 10,080 Total £ 17,482 - |
|
|---|---|---|---|
| 17,482 | |||
| 1,444 1,748 |
|||
| 3,192 | |||
| 14,290 | |||
| 16,038 |
The notes on pages 11 to 16 form part of these financial statements.
Page 14
The Theosophical Society in England Charitable Company limited by guarantee
Notes to the financial statements (continued) Year ended 30 September 2022
9. Tangible Assets
| Fair Value/Cost At 1 October 2021 Additions Revaluation At 30 September 2022 Depreciation At 1 October 2021 Charge for the year At 30 September 2022 Carrying amount At 30 September 2022 At 1 October 2021 |
Freehold property £ 3,125,000 - (155,000) 2,970,000 - - - 2,970,000 3,125,000 |
Fixtures, fittings & equipment £ 35,053 1,591 - 36,644 15,968 8,310 24,278 12,366 19,085 |
Total £ 3,160,053 1,591 (155,000) |
|---|---|---|---|
| 3,006,644 | |||
| 15,968 8,310 |
|||
| 24,278 | |||
| 2,982,366 3,144,085 |
The freehold property was valued by White Druce & Brown Property Consultants in September 2022, in accordance with the relevant sections and standards contained within the current edition of the RICS Valuation - Global Standards 2017, incorporating the International Valuation Standards Global and the UK (the "Red Book"). The directors believe that this valuation still represents the fair value at the year-end.
10. Investment Properties
| Fair Value At 1 October 2021 Net gains or losses through fair value adjustments At 30 September 2022 |
£ 2,160,000 65,000 |
|---|---|
| 2,225,000 |
The investment property was valued by White Druce & Brown Property Consultants in September 2022, in accordance with the relevant sections and standards contained within the current edition of the RICS Valuation - Global Standards 2017, incorporating the International Valuation Standards Global and the UK (the "Red Book"). The directors believe that this valuation still represents the fair value at the year-end.
The notes on pages 11 to 16 form part of these financial statements.
Page 15
The Theosophical Society in England Charitable Company limited by guarantee
Notes to the financial statements (continued) Year ended 30 September 2022
11. Fixed Asset Investments
| 11. Fixed Asset Investments |
||||||
|---|---|---|---|---|---|---|
| Listed investments Other investments Total £ £ £ Cost At 1 October 2021 4,150,579 100 4,150,679 Valuation changes (387,749) - (387,749) At 30 September 2022 3,762,830 100 3,762,930 Carrying amount At 30 September 2022 3,762,830 100 3,762,930 At 1 October 2021 4,150,579 100 4,150,679 Other investments relate to an 100% investment in a dormant subsidiary. Name of undertaking: The Theosophical Publishing House Limited Registered office: 50 Gloucester Place, London, W1U 8EA 12. Debtors: amounts falling due within one-year 2022 2021 £ £ Trade debtors - 127 Other debtors 14,482 9,157 Prepayments and accrued income 2,203 17,125 16,685 26,409 13. Creditors: amounts falling due within one-year 2022 2021 £ £ Trade creditors 9,703 22,347 Other creditors 19,143 18,247 Accruals and deferred income 36,250 23,641 65,096 64,235 |
Listed investments £ 4,150,579 (387,749) 3,762,830 3,762,830 4,150,579 |
Other investments £ 100 - 100 100 100 |
Total £ 4,150,679 (387,749) |
|||
| 3,762,930 3,762,930 |
||||||
| 4,150,679 | ||||||
| 26,409 | ||||||
| 2022 £ 9,703 19,143 36,250 65,096 |
2021 £ 22,347 18,247 23,641 |
|||||
| 64,235 |
14. Ethical Standards
In common with businesses of a similar size and nature, the auditors are used to preparing returns for the tax authorities and assist with the preparation of the financial statements.
15. Trustees Remuneration
Three of the Trustees were paid £14,833 in total for specialist management services. In the prior year the equivalent costs were £11,000 in total.
The notes on pages 11 to 16 form part of these financial statements.
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The Theosophical Society in England Charitable Company limited by guarantee
Notes to the financial statements (continued) Year ended 30 September 2022
16. Operating lease commitments - lessor
At the reporting end date there were contracted leases in place with tenants for the following minimum lease payments:
| Within one year Between two and five years 17. Cash generated from operations (Deficit)/Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Fair value losses/(gains) on investments Loss on revaluation of freehold and investment properties Depreciation and amortisation of fixed assets Movements in working capital: Decrease/(Increase) in stocks Decrease in debtors Increase in creditors Cash (absorbed by)/generated from operations |
2022 £ 108,000 22,500 130,500 2022 £ (459,557) (125,630) 387,749 90,000 10,058 377 9,724 861 (86,418) |
2021 £ 108,000 130,500 |
|---|---|---|
| 238,500 | ||
| 2021 £ 522,015 (98,599) (539,028) - 9,147 (1,851) 28,157 14,628 |
||
| (65,531) |
The notes on pages 11 to 16 form part of these financial statements.
Page 16