Rydal"Hall Limited Annual Report and Consolidated Financial Statements 31 December 2022 Company regislration number: 02561024 Charity registration number- 1176419 dOdd&co Imll ACCN41G2• 2310912023 COMPANIES HOUSE A10 #119 Rydal Hall LimTted Contents Reference and AdmH)istrative Oetaits TnJst&s' report Trustees. responsibilitie5 in relatK)n to the ffinancial statements Independent auditor5, iepori Statement of finanaal activities Balancè sheat 10 .Chanty balant* sheet Cash fi¢)w statement 12 Note5 to ts financial ststements 13 Rydal Hall Limited Reference and Administrative Detsils Charity nam• Rydal Hall Limited Charty registration number 1176419 Company r•gistration numbef 02561024 Prineipal offiee Rydal Hall AMBLESIOE LA22 9LX Reglstered offi¢¢ . ChurL* House Friargate PENRITH CA11 7XR Trustèes J Rushton (ResvJned 19 April 20221 Rev W E Sanders P N Yates The Venerable Dr R D Pratt R D Jaques N lan￿$ter (Reswned 1 August 20221 A ￿￿2haM Secretary R D Jaques Auditor Dodd & Co AL*Jit ￿Mited FIFTEEN Rosehill Montgomery Way Rosehill Esiate CARLISLE CA1 2RW .Page1 Rydal Hall Limited Trustees. Report for the Year Ended 31 December 2022 The Trustees, vtho are directors ol the Company for ￿ purposes of ccrfnpany law, wesent their ￿port together wilh the financial statements of the Charity forthe yèarended 31 Deternter2022. Govèrning Document Rydal Hall Limited vjas incwporaled on 21 November 1990 as a tradiro subsidiary of Carlisle DI0￿$an Board of Financè. It obtained charity ￿gIstratIOn on 21 De￿mber 2017 {number 1176419) and started to operate 85 8 aha¥ity from 1 January 2018. The cornpany Wds estsb115hed under a MemorarKlum ol Assouation, which established the objecis aThJ power5 of the Charitable c(Thpany and is governed urvjèr its Artides of Assouation as amended on 13 December 2013. The finanoal stalements have been p￿pare£l in accordance wAth the acc4XFnting p￿Ic￿S set oul In notes to the account5 and cotnply with th8 charity's govemiNJ documert the Chanties Act 2011 and Accounting and Reporting by Charrties. Statement of Recommended Practi￿ ap￿icableto chantses preparing their acctsunts in acCOr¢Jan￿ wth the Finanaal Reporting Standard fof Smaller Entibes published on 16 July 2014. Appointrnent of DirectotsThruste•s Up to three TnJstees can be appointed by the Cadisk Dwesan Board of Finan￿ for a three year le￿. Up to an additioaal five, who shall not be empbyee5 or officets of the Carfisle Diocesan Board of Finan￿. can be appointed by a resolution ol the Trustees. One third lor the number nearest one Ihiidl of the Tfustees appointed by resolution of the Tmstees. must retire at a meetirg calkd for Ihal purpose. A retirin9 Twstee rnay be ¥eapFK)inted. Tmstees wft, cx) a regular basis, assess the need f¢y and provide any Tnjslee training as may be required. Risk Assessment The tiuslee5 have examined the major 5trategi< business and operab.onal risks which the tharity faces and confirms that Syslems have been established to enable iegular reports to be prthyu￿0 so that the necessary 5tep5 can be taken to lessen these risks. Inv•$tm¢nt powers and T•stri¢tions The Trustees have the power to in¥est in suth assets a5 they see fft after 5eekiTrJ Suit*￿ expert advi￿ ifconsidered necessary. Objectives and Aetivilies The objects ofthe ¢hanty a￿.. To promote and assist the of the thurch of ETrJland lor the advancement of the Christian rÈligion' in thè .0￿)￿se of Carf1s￿ and coJnty ol Cumbna To advance the Christian relvJion by Ibutwithtyii pre1￿￿1¢e to the generalty of the foregoingl.. Pro¥￿ing a welcome and otreat house and facilit*s for members of the puNic from within arKI outside the county wishing to ￿orn about sndlor pryaCt￿ the Chnstian relKJion". Oeveloping and promding opportunit￿$ tr gr(A¥th in prayer. rni5SK)n and s￿ritUal￿ty within the Di<)cese of Carlisle and coijnty of Cumbria. Such other exdusively charitsble.purposes actordir4J to the law ol ErglaThJ and wales Ihat the trustees in theirab$￿Ute dimtion dechle from *me to time. In setting objectNes of the tharty the trustees have comKlied Ihe Chanty C￿MiSsion guidancÉ on public. benefiL Page 2. Rydal Hall Limited Trustees. Report for the Year Ended 31 December 2022 Achievements and Perfomion¢e Having seen a mixture of ong(Nng Cov¥J 'wave5' in 2021. the assouated restrid.ofts that came witrr them, ancj $c￿e periods of opening up and a retum to some elements ol'nom?alW. 2022 saw a relati￿tY nonnal year frorn a tradin9 perspective. However. CovNJ-19 {affeaiThJ some elements ol our traditional customer basel. Brexit Imaking hospiiality recruitment in Cumbria very challenging) and the ernerge￿ of Ihe cost of living crisis, all made 2022 3 tovgh year in which to operate the charity. The Trustees are grateful for the de(SIG9t￿ hard ofthe staff who c4)ntinuÈd to welcome our guests and help fvlfil the objects of the charity. 2022 saw the departu￿ of Rydal Hall's General Manager and our thanks go to her far her hard work an¢J for steenng the charity through the Cow¢J-19 crisi8. A new General Manager was recruited in Oecembei 2022 and started work in March 2023. briThJiThJ exwentr thatvAII help wilh Rydal as it wotks its way back towards finana81 sustainability. The Tiustees continue to be gratefijl for the contributions fri)m the 'Frtends of Rydal Hall. group. both thriyJgh their support of the Rydal Community. and thr(￿gh many hours oftime vclunteered on site vAth wacbcal support. Rydal Hall is looking partioJlarfy ai how it can con￿nE[e io play an aclNe part in the Diocesan 'God lor All, wsion. and seek to be 8 place ofwit￿sS and wekL¥ne to thosewho Msrt. 2023 wll see s(Mne new developments In this area. Financial Review The group recorded a defic4t for the year of £178.875.12021 had seen a LHrge sU￿lUS bth primarily as J result of tsjo major grants rec&ived during the year to aid post-pandernic iecoveryl. GTOUP income fell from £1,523.666 to £1.280.959. but taking out the large value of grants received In 2021- IncAyne rose by £334,812 - result of being open all year in 2022 and workir*J hard to strerwen ino)me.across the various aSr￿ts Of1￿ charity and the Rydal Hall Estate. Chair(able activitÈes in the Hall rose to £798,247 (ftc¥n £535,475) aThJ aciiwbes in the trading sub$Kliary inueased to ' £467.943 lfvcm £397.7181. Costs increased in lin8v￿th thè additiona aclw. Closing resèrvès had a deficJt of£176,406, wih no restrictsd ￿serVeS. Diocesan Support As.reported last year, the Carfisle Diocesan Board of Finants as sole sharettoFder ol the charity. Undertook a rewew ol the value of the estsle. potenfyal fvluie incorne and expenditurts. and the impact of mission and ministry carried out in and through Rydal Hall. DIcKesan Synod In March 2021. approved almost unanimously, to retsin ann. Our opinion on the finanoal statements does not cover the other Infomabon and. except to the extent olherwise eX￿lritIY stated in our report, do nor eXp￿$S any fomi ol assuran￿ condusion theieon. In conneclion wth our audit of the financjal statements, our responsibility is lo read the other inf¢Hrnation and. in doing 50. consKler whethef the other inf(mabon is materially inconsislenl with the finanrial statements or our knth￿edge obtained in the audit or othetw¢se appears to t£ materially 'misstaled.- If we identify such material inconsistencies or apparent material misstaternents. we ale required to deiem)Ine wheiher there is a material misstaiemeni In the finanoal statements or a maleiial misststemènt of the other infornalion. If. based on the work have performed. condude that the￿ is a material misstatement of this other infomialion. are required to report.that farl. We have nothing to"report in this regard Oplnlons on other mattels prtscribed by the C¢)mpanies.A¢t 2006 In our opinion, based on the work undertaken li thecour5e of the a(kYit". . the infomiation given in the trustees. (Incorporab"ng the Strateg￿ report the di￿￿0r$, ￿POrt) for tl financial year for which the finan￿￿ staiements are prepared 15 cons15tentwih the financial ststements,. and . the trustees. wort lincorporating the strateg¢ repC￿ a￿1 the directNs' report) have been prepared in accordance wth applicable legal requirements. Pa￿6 Independent Auditors. Rer)ort to the Members of Rydal Hall Limited . cOntin￿d Matters on which wè are reguired to rÈport by excep1ion In the light of the knovAedge and understaThJing of the Chanty and its enwronment obtsined in the course of the audit. we have not identified maierial rnisstatements in the TnJstees' Annual ReporL We have noihing to report in resped of the folbwg maws in relab.on to WW the c￿npanIeS Ad 2006 requir85 US to report to you tf. in our opinion". rtain dtscb5ures of trustees, rernunerab"￿ SFeaW by law are not m*Je". ¢ adequate accounting records have not been kept or retums adequate for tyJr audrt have not been received from branches not ￿l$lted by us. or the finanoal statemenls are not in agreement wth the accounbng re￿Id5 and ietuins.. we have not obtained all Ihe infomiatiC￿ and ewanabons necessary for Ihe wrposes of our audri. Re$pon$ibilitie¥ ol the irustoes As explained fflo￿ fulty in Ihe Tru5tees' Responsi2)ilities Sialernenl sei out on page 5. the trustees Iwho are a1$0 the direclors of the Charitab￿ company for the purposes of company lawl are responsible for the p￿parab"On of the rinancial statements and for beino satisfied that they give a true an(1 fair view. arKI for such intefflal controls as'they detemiine is necessary to enable the p￿paration of finanual statements that are free trom material misstatement. whether due io fraud or error. In preparing the finanoal siaLements. the trustees are responsible for assessing the Charity's ability 10 continue as a going Con￿rn. di$downg. as applicab￿. matters related to 90ing conrEm and 'using the going Ctrn￿M basis of accounting unless the trustees erther intend to liqvidate the Charity or to (ease operations, or have no Tealists"c allemaiive but to do so. Our responsibilities for the audit of the financial staternents Our ofy'ectives are to obtain reasonable assuran￿ about whether the financial ststements as a Who￿ a￿ free from rnalerial misstalemenl. whether due lo fraud or error. and ￿ issue an auditorfs report that inclLxJe5 our opinion. Reasonable assurance Is a high level of assuran￿. but is not a yuarantee that an audit condvcted in ar£Ordan￿ with ISAS IUKI will aFways detect a material misstatemeni when it exists. Misstatements'¢an arise from fra(￿ or error and a￿ considered rnatenal if, Indiwdualy or In the aggregate. they coukj reaSona￿Y be expected to Influence the éconornic decision5 of usets iaken on the basis of these financial statements. In identifyir#J and assessing risks of material rni5ststement in ￿SpeCt ol irregulari¢*s, induding fraud and non-compliance with laws and regulations. conswJe￿ the le41ovring." the natu￿ ol the industry and sethor. conlrd enwronment arwj charitys perfomiarte.. results of our enquiries of rnarwement about their idenb"fication and assessment of the risks ol irregvlaritiès. any matters w& Klentified havirMJ obtsined and revwd the dwrty's d¢)cJJmentstion of their. pc4iues and prth2dures relating to.. Idenlifying, evaluaQ'ng aTrJ complying wth Lgws and wulation5 ano whelher they a￿ aware of any instances of non-compliance". detecting and responding to the risk5 offratyj whether tlw ha¥e knthvlèdgo of any actual, svspected or alleged fraud.. the intemal controls establthed to mibgate risks offraud N non&c￿p1Ian¢e laws and regulat￿ns". The rnatters discussed the audit team warding aTrJ Whe￿ tra[￿ M￿ht occur in the finanaal statement5 WKI any potential Indi￿Lor$ of fraud. .. P¥Je 7 Independent AuditOTS' Report to the Members of Rydal Hall Limited .. GonDrJued As a result of these pro￿d￿￿, consKJered the opportunrties aNI I￿ntiVeS that may exist wiihin Ihe organisation for fraud ancl identified the greatest potential lor fraud to be in relabon lo revenue recognitron and management overiKle whth. In wmrnon all audits under ISAS IUK). a￿ required to perfomi speufic procedures to respond to this risk. We also obtained an unclerstanding of the legal and regulatory framework thal the operates in. focusing.on provisions of those laws and regulations that had a direct effect on the deierminaty.on of material amount5 and d15closures in the finanaal slaternents. The key laws a￿j ￿gulaI50n5 Me conside￿￿ In this o)ntext was the Companies ACL Chariu'es ACL pension legislab"on. employrnent Jaw. tax legislatyon 2nd relevallt health and safety laws. As a ￿sum of performing the above, in fes5)onse to the risks klenb"fed, we clid not tdentify any key audit matters relaled to th8 p¥)lentsal risk of fraud or non-complian￿ vMth.law5 and I8guiations. In additiDn lo the above, our procedures to respond to risks identified included the fOlk￿"r￿J.. the finanoal statement disdosvres and tesbng to supporting docwnentst+on to assess complian ,with provisions of relevant law5 and regulabons described as hawing a direct effed on Ihe financial statements", enquiring of manageMenta)￿&M1n9 actual and potential I￿￿allOn and daims.. perfomiing analytical procedures to Klentfy Èfty unusual (>r unexpÈ(ièd rèlatimships that may Indicate risks of material misslalementdue io fraud., reading minutes ofmeetings of.those wlh 9ovemance. aThJ in addressing the risk of fraud through management override of controts, te$￿'r￿j the appropriateness of Foumal entnes and other èdjustmellts." assessing whether the I￿jgemen1$ made In making awunting esbm8les are indicative of a potentsal bh3s". and evaluating the bu5ines5 rationale Df any significanl transactions that a￿ unusual or outside the nomial cDurse of the charitys work. We also ￿mmUnIcated rekvant identified laws aThY regulal'ons and potential Ir3ud risks lo all Engagement team members and remaine(J alert to any indications ol frau¢J or non-compl￿n￿ vAth laws and regulats'ons throughout the audit. A further descriplton of our respor￿1b1Iitles for Ihe audrt of the finanaal staternents is located on ttie Financial Reporting Counol's websile at. w•M.frc.org.LWatyYrtorsre5ponsibilitw. This ￿e$r￿ption ftsmi5 Part of our audittsr's rewrt. Use of our report This report is made s(dely io the tharity's Members as a body. in acl0rdan￿ wth Chapter 3 of Part 16 of the Companies Act 2(K15. Our audit work has teen undertaken so that we might state to the thantys rnernbers those matters we are required to state to them in an auditorfs ￿ptsrt and for Th) other s)urpose. To the htrllesl extent pemiilted by law, do not accept or assuffle responsibilrtyto anyone Olherthan Ihe charity and its mernbersas a boty. for OUT audit work. for this report. or for the opinions we have fomed. FIFTEEN RosehAI Montgomery Way Rosehill Estate CARLISLE CA1 2RW aye Arrnstrong (Senior StatLttory Audilorl For and on behalfof Dodd & Co Audrt Limited, Sta￿tOry Auditor 19 September 2023 Dodd & Co Audit Limiied is eligible to act as an auditor in temis of seC￿)n 1212 of the Cwpanies Act 2006 Page 8 Rydal Hall Limited Statement of Financial Activities (including Income and Expenditure Account) for the Year Ended 31 December 2022" Unrestricted Restricted Total Funds Total Funds Funds Funds 2022 2021 Note Incomè and èndowments Irom: Donations an¢Y legaues Rydal Hall Tr&Jing Limrted trading 8th￿1￿$ Investments Charitat4e aCtivrt￿s Other Total income and endownents 8.926 467,94& 3,198 798.247 . 423 1.278,737 2,222 11,148 467,943 3.198 798,247 423 1.280,959 588,667 397.718 20 535,475 1.786 1,523,666. 2.222 Expenditure on.. ChaTht8ble 8ctiMties Total expenditu 1.457,612 1.457.612 2.222 2.222 1.459.834 1.459,834 1,074,531 1,074.531 Net movemenls in fuThls {178.8751 {178,8751 449,135 Reconciliation of funds Total iun¢Js brought forward Totsl fvJnd5 cArr￿d forward 2,469 .1176.4061 2.469 I176,4(￿) {446,6661 2.469 All ofthe Charity's derive from continuing (yralions duri￿ the above peric#Js. The notes on page$ 13 to 24 fomi an ￿tegra1 part of Ihese finanaal StsI￿nents. Pa9e 9 .Rydal Hall Limited Company registration number. 02561024 Balance Sheet as al 31 December 2022 2022 2021 Note Fixed a$￿ts Tangible assets 12 59,506 Current assets Stocks and worfK in prcgress Debtors Cash at bank an¢J in hand 7.733 47.041 240,g14 295.688 14 106,697 312,405 426,001 Creditors.. Arnounts falling due within one year 15 1357.5381 1282,4381 Net Current Illablliliesvassets 161.8501 143.563 Net assets 24.194" 203.059 The funds oliht charfjty.. Restr(¢ted funds Unrestricted lund5 Called up Sha￿ caprtal Unrestricted income fvnds Totzl unrestricted funds 200,600 1176.406} 200,6Q) 2,469 24.194 203.069 Totsl charity funds These accounts have teen prepared IR aC￿darKe Ihe pro¥ision$ applicable to ¢oMpan￿5 suLI"ect to the small companies regime. 24.194 203.069 Approved by the Board on 19 September2023 and signed on ils behalf by". RDJ ques The notes C￿ p￿e$ 13 10 24 icth an integral part ofthese finanaal statements. Page 10 Rydal Hall Limited Charity Balance Sheet as at 31 December 2022 2022 2021 Note Fixed assets Tangits￿ assets Investments 12 13 86.044 59,506 86,045 59.507 Current assets Stocks and ￿)rk in progrèss Debtors. Cash at bank an¢J"In hand 7.733 47,041 240.914 295.688 6,899 108,697 312.405 426.001 14 Creditors-. amounts falling du8 within on• year 15 1357.5391 1282,4391 Net eurrent Iliabiliti•sVassèts Net assets 161.8511 24.194 143,562 203.fh59 The funds of the charity-. Unrestricted funds Called up share raptsl LIn￿stn¢te￿ income funds ' Totsl unre$lri¢ted funds 2(Kl.600 1176.4(%1 2CM).6DJ 2,469 24,194 203.069 Total charity funds 24,194 203,069. These accounts have been prepwed in acwdance wilh the provi510n5 3pphcabSe to companies subject to the small cL)Mpan￿S regime. No Ststement of Finanaal Actiwty Is presented for the" thanty as ￿miitted by SeGtv)n 408 of the Cclnpanies Act 2CM)6. The charity posted a defiat for the finanual year of £213,84612021 _ surr4us of£377.0261. Approved by the Board on 19 Septernber 2023 and sKJned on its behalf by. ves The notes on page$ 13 to 24 lomi an iniegrnl part ofthese finanaal statements. Page11 Rydal Hall Lirnited Cash Flow Statement for the Year Ended 31 December 2022 2022 2021 Net cash providèd by lu$td by) operating activities Net {expenditureYinc(Mn8 for the peri Depr8Lyation charges Increase in st¢xks Decreasellincreasel In (Jebio Increaselldecreasel in csedit 1178.8751 17,992 18341 62,254 72,502 ' {26,9611 449,135 18.181 11,6381 175,1741 1243,9791 146,525 Net cash provided by {used inl investing activities Purchase of property. plant and eouipment {44,5301 {44,5301 ecreasellincrease In cash {71,4911 146,525 The noles on pages 13 to 24 frKm an integral part ofthese financ¥al statements. P4e 12 Rydal Hall Limited Notes to the Financial Statements for the Year Ended 31 December 2022 Accounting policies Sumrnary ol signlfi¢ant accounting poli¢i¢s and key ¥¢¢ounting estirnat•s The pfinopal aco)unD'ThJ poI￿Je$ applied in the prepaialion of these finanaal stslements are set out below. These policies have L￿n conststenuy aFyl*d to all the year5 presented. unless Ott￿r￿tse stated. Statement of ¢ompllance The financial ststements have been prepared in acrA)rdante *itt) Accountsng and Reporb'ng by Charities." Statement of Recommended Practic£ appliG3trAe to tharrtie5 preparing their accounts Jn accDrdance with the Financial Reporting StaThJard applicable In the UK and Republi¢ of Irelarml IFRS 1021 leffeuive 1 January 20191 (Charities SORP IFRS 10211. the Finanual ReportwwJ Stsndard applicabk in the UK and Republic of I￿land IFRS 1021 and the Companies Ad 2￿$. 8asis of preparation The charitable cornpany meets the definition of a publ￿ benefit enbty under FRS 102. Assets and liabilities are initially recogni58d at hIst￿tal cost or tranSacI￿n value unless othemse staled in the relewdnt accounting policy notes. Going concern These finanaal statements have been prepared on a goiThJ rA*r£m basis. The I￿￿tee$ assess Mtheiher the use of gc¥ng concem is apprormiate i.e. whether there are any material uncertainties related to events or conditsons that may cast significant doubl on.the ability of the Charity tts continue as a going concern. The tnjstees rnake this assessrnent in respect of a period of one year fr(Yfi the da of approval of the finanaal statements. The gr¢wp is dependent on the ongoiThJ support ol its parent charity. Cartisk Diocesan Board of Finan .ICDBFI. iri order to conbnue trading. CDBF has fomialty confimed such support shall contsnue to be provid8d and on that basis the tharty remains a wn9 corKem. Fund a¢countinq poli¢y Unrestricted income lunds are general funds that a￿ available for use at Ihe trustees. disueu.on in fvJrther8n￿ of the 0tr4'ecb'4*5 of the tharity. Further delails of eath fund are (ksdosed in ￿te 21. Page f3 Rydal-Hall Limited Noles to the Financial Statements for the Year Ended 31 December 2022 .. conbnued Income and endovmients Donations are recognised when the Charty has been nobf*d in writing of both ts amount and settlement date. In the event that a donation is subject to Condit￿￿$ that require a kvel of perfornianre by Ihe Chanty befo￿ the Charity ts entitled lo the frtnds. the incorne 15 dele￿ed and not recognised until either those coThditions 8re fijl met. or the fuifilment of those condib.ons is ￿ollY within the control of the Charity and it is probable that these condth.ons will be fulfilled In the ieporting peric¥J. Legacy gifts are reco3nised on a G3se by G8se b35ts fOlkN￿r￿j the grant of Fyobate when the admini5torlèKecutor for the estaie has communicated in vmting both the amount and selllement date. In the event that the gift is in the form of an asset other than cash or J finanoal asset trad•J on a recognised stock exchange, recognition is subject to the value of the 91ft being reliably measured wth a degree of reasonable accuracy and the b.tle to th&- asset having been transferred lo the Charty. Income from Govemrnent and other grants. whether'capital. grants or.￿venUe. grants. is recc*Jntsed when the cbarity has entillemeni 10 the funds. any performanc£ conditions attached to the grants have been met. it IS probabk thai the Income wll be le￿1¥e￿ and the amount can be measured reliabty and is not deferied. Investmenl income is recognised on a ￿￿1Vable basis. . Incorne from charitaL4e acDvities ind￿JeS income recognis&Y as eamed {as the related gwds or services are provkledl under contract. Expènditure Liabilit￿$ are recconised as soon as Ihere is a legal of constructive obligab.on.committing the Charity to the expenditure. All expenditUTe is ac£ounted for on an accrua15 basis and has been dassif*d under heading5 th8t aggiegate all costs related to ttte categc*y. Charitab* expenditu￿ comprises those costs inwrred by the tharity in the delNery of its aeiiwt* and servKes for its iEneficiari8s. It indudes both costs that can be allocated direcuy to suth activitie5 and those costs ol an indirect nature ne￿sSary to supportlhem. Support eosts Support costs indude cen¢ral fun￿0￿5 and have treen allotated to acivity Cost categories on a basis consistent. th the use of resources. for example. allocating wrperty costs by Iloor areas, or capita. stsff costs by the time spent and other costs by their usage. Irrecoverable VAT Irtèco￿ral4è VAT is eharged again￿ the categwof ￿SOurceS expeThYed for it wa5 incurred. Taxation The Charity is considered to pass the tests set ￿j1.1ft Paragra￿ 1 Schedule 6 of Ihe Finanr£ Act 2010 and the￿f￿e it meets the definition of a Charitable company for UK corporation tax purposes. Acwrdinoly. the Charity is potentally exempt from taxation in resrec¢ of incorne or capital gains ieceNed wthin categones vered by Chapter 3 Part 11 01 the Corporat%)n Tax Act 2010 or Section 256 of the Tax£lon of Chargeab Gains Act 1992, to the extent Ihat suth income or gains a￿ appl*d exdusirfi to Charitab￿ purposes. Fixed assets Indimdual fixed assets u)stin9 £10CXI or more are initialty recorthd at Cost. Page 14 Rydal Hall Limited Notes to the Financial Statements for the Year Ended 31 December 2022 . Con1￿u&d Depre¢lation Depre¢iatiThry is PlOVKlÉd on tangible fixed assets so as to write off Ihe ¢*St or valuats"on. less any estimated residual value. over their expected vsefvl econcMnic life as fonows.. Leasehold land and buildings Plant and machinery induding rnotor vehicles Fixtures. fittings and equipmenl 10 years straKJht line basis 25% straKJhl line basis or 10 years Stra￿ht Ine basis 25% Stra￿ht line bass or 3 year5 str3wJht line basis Stock Stock is valued at thè lower of cost aThJ net rea115able y￿ue. after due regard for Obso￿te and sltsw moving stocks. Net realisable value is based on sdling prre ￿$$ antiopated costs to cornpletic￿I and selling costs. Items onated for ￿$21& or distribution are not induded in the financial stslements until lhey are sdcj or distributed. Trade Oebtors Trade debtors a￿ amwnls due frcffj customets for merthandise SL*J or servicEs k*rfomed in the ordinary course of business. Trade debtors are recognised iniually at the transacbon price. They are subsequently .measufed at arnortised cost u&ng the effective intewt methcxj. prowsion for Impaiment. A wovisioft for the impairment of trade debiors is established vthen there is objective ewdence that the Charity will not be ab18 to collect all amounts due according to the original temis of the ￿eeNable$. cash and Cash Equivalents Cash and cash equivalents rAHllwise cash on harKI arKJ ¢all deFrf)sits, and Other short-temi highly liquid investments that are readily Convertib￿ to a knth¥rL amount of cash and a￿ suLI"ect to an ￿SIgnIfiCant risk of change in value. Liabilities Trade ueditors a￿ Obligatic￿ts io pay ts goods or services that ha¥e been ac4uired in the ordinary course af business from suppliers. Accounts payab￿ ale dasSIf￿ as cur￿nt Iiabilibes If the Chanty ¢Joes not have an uncondibonal right, at the of the reporriNJ period. to defer settlement of the creditor for at kast ￿e1 month5 after the reportin9 date. If there Is an vncorvJilKJnal Trjht to defer settlement for at least twelve months after Ihe reportsrg da¢e. they are presenied as r￿r￿aIrrent Iiats'lites. Trade creditors are ￿¢￿jniSed initially at ihe transathon prtt a￿1 subsequenuy measured at amorb.sed cost using the effective interest method. Operating leases Leases in which 5ubslanbally. all the risks and rwdrds of owr￿r$hip are retained by the le550r are d855thed as. operating leases. Rentals payable under￿rating leases a￿ charged in the St31ement of Financial Activitiès on a 5trauhl line basis overthe lease temi. Pènsions The charity operates a defined Contritwtion pension scheme. C￿tr*ju￿OnS arè tharged in the stsiement of finanaal activth'es as they teCLNne paYa￿e in acwdance wth the rvles oflhe stheme. Pagè 15 Rydal Hall Limited Notes io the Finaneial Statements for the Year Ended 31 December 202.2 .. continued Financial instruments Finantyal 8ssets.and finanaal h"abilths are recLtyJnise(I vA)en the thanty becomes a party to the contractual P¥OV1510ns of the instrument". Finanrial liabilit￿$ and equity instruments are dassif*d according to the substan of Ihe contractual arrangements entered Into_ An equity Instnjment is any contracl thai ewdences a resKJual interest in the assets of the Charrty after deductiNJ all of its li*)ilibes. All finanryal asset5 anij liabilities a￿ initially measured at ttansaGbon wce (including transaction costsl. except for those financial assets classified as al fair value through profit or b$5. whith are init1811y measu￿￿ at fair value (which is normally the transa￿￿ pri￿ exduding transacbon coslsl. unless the arrangemenl conslitutes finanrjng transaction If an arraftgement rAN15titutes a financ4ng ttansact40n. the finanual asset or financial liability is measured at the yesent value of the fvlure paymenls discounted at 8 market faie of interest for a similar debt instrument. Finanoal assets aThJ liabiltbes ao onw offset m the sialement of finanoal position when. and onty %vhen there exists a legally enfOr￿able right to set off the reccty3nised arnovnls and the Chanty intends either to setde on a net basis, orto realise the asset and settk the liabilty Syriultareou￿Y. Finanaal assets are derectyJnised when an