REGISTERED CHAIUTY NU￿(BER. 207020 Report of the Trustees and Financial Statements for the Year Ended 31st March 2025 for The Ilew College of Cobham Beak Kemmenoe Chartered Accountants 1-3 Manor Road Chatham Kent ,ME4 6AE The NeTh' College occobham Contents of the Fioanci#l Statements For the Yegr Ended 31st M#rch 2025 Page Reference and Adminisiration Dctai15 Report of tl)c Trustccs 2to4 Independent Auditor's Report 5t08 Statement of Financial Activili¢s Statement of Financial P051tion 10 Notes to the Financial Statements The LN'eiv College of Cobham Reference and AdministTation Detai15 For the Year Ended 31st March 2025 TTUStee$: R G Coop¢r- Presideni J Fam1¢r- Vicc Pr¢5id¢nt- appointcd l June 2025 P Filmer J A Ogden DL R Dymond DL M Jackson D Butl¢r (de¢eased)- Vi¢¢ Presideni- di¢d 22 May 2025 Clerk to the College: C Stanton PriHcipal Office Addre5S: CobhaTnbury Road Cobham Grai-esend Kent DA12 3BG Registered Charity iyumber: 207020 Indeptndent Auditors: Bcak Kcmmcnoc Chartered Accountants and Registered Auditors l - .1 Manor Road Chaiham Kent ME4 6AE Ballker5: National Westminster Bard( 40 High Street Rochcst¢r Kent MEI ILR Page I The New College of Cobhgm Report of the Trustees For the Year Ended 31st Marcb 2025 Structure, Governgnce 2nd Management The New Collcge of Cobham is a registered Almshouse Charity governed b! Acl of Parliament of1597 and by the Charities Act 2011. The Charity is administcrcd by a board of six lrnstees. The President and Vice Prcsidcnt arc the serving Senior and Junior Wardens of the Rochester Bridge Trnsi. One trust¢¢ is nominated by the Rochester Bridge Trust lo serve for a period of five years. The iemaÈning three trustees are co-opted local tNsiees who are elcctcd for periods of five years. The Chariry has adopt¢d and complied with the National Housing Federation Cod¢ of Governance 2015. Objective5 and Activities The Charity proi.ides qheltered accommodation lor pensioners from ihe ancient parisheq of Chalk, Cliffe, Cobham. Cooling, Ctsxton, Grav¢s¢nd, Halling. Higham. Hoo. Hoo Si Mary. Shorne and Strood, who are members of the Chur¢h of England. The Charity is a public benefit entity and the Tnjsiees have had regard to th¢ guidaiicc issucd by the Charity Commission on public benefit. Thc Charity administers ihirty fik'e flats in two ¢oinpl¢x¢s, including a guesi flat and one flai is set aside for the warden. The first complex is the Coll¢g¢ its¢lf, ￿'hICh ￿'aS originally built as a Chantry College in th¢ year 1362. It was re-edified as an Almshoiis¢ on 29th September 1598. The interior ￿'aS again refurbished in 1980 coniening it into rweli'e modern self contained flais, one guesi flai, an otTice and a large meeting hall. The complex is Grade One listed and open to thc public. The se¢ond complex is known as Stonehouse Yard and is situated about twenry, yards frotn the College and comprises of twenty two modern sclf coniained flats. The first phase of sixteen flats w'as ¢omplctcd in 1993. with an extension of a further six flats completed in 2012. The Charity aims provide value for money for its tenants by delivering high quality 2¢commodation whilst keeping a control on ¢osts. The Chariiy has complied with The Govemance and Financial Viability Standard. Achiei'ements, Performance and Flnancial R£￿e￿ The Almshouses are currently P&ll o¢¢upicd. Th¢rc were four changcs of tenancy during the reporting p¢riod resuliing in sei'en void months. Additional work5 were carried oui on (he roof of th¢ collegc building cosiing £51,681. heating systems were upgraded. and sel'eral tlats were refurbished whi¢h contributcd to a dcficii for the year and reduced the Charity's accumulated reserves. The Trustees continue to consider that the Charity's financial position is sccure with ini'e5tments valued at £125,980, bank balances totalling £90,819 and accumulated r¢s¢rv¢s of £1.151.120 at the reporting dale. P2ge 2 The Yi eiv College of Cobham Reptsrt of the Tru5tee5 For the Year Ended 31st March 2025 Achievement5. Performance and Financi41 ReTriew- continued The Charity plans to run al a sinall surplus in the coming years to cnsure the reserw'es are resiorcd to a Ici'el exceeding £1,300,000. This will ensure that the Charity can continue to provide quality housing, by carrying out repair5 when they are required, and its tenants continue to receive value for money. Statement of Trustees, Responsibilitie5 The Trustees are responsiblc for preparing the Report of thc Trustees and the Financial Stalemcnts in accord2n¢¢ with the Housing SOIiP 2018, United Kingdom Generally A¢¢epted Accounting Praciice Iunited Kingdom Accountino Standard% and applicable lawl, including FRS 102 'The Financial Reporting Standard applicablc in the UK and Rcpublic of Ireland., Accounting Direction 2019. the Charities Act 2011 and all other appli¢ablc law. The law appli¢ablc to charities in Enoland and Walcs rcquires the Trustees to prepar¢ Financial Statements for each financial ycar which give a trn¢ and fair Vic￿. of the state of affairs of thc Charity and of the incoming rcsources and application of resourccs, including the income and ¢xpenditure, of the Charity for thai period. In preparing those Financial Statcments the Trustees are required to.. select suitable accounting policies and apply them consisiently,. observe the meihods and principles in the Housing SORP 2018; make judgements and estimates that are reasonable and prudenl,. and prepare Ihe Financial Statements on a going ¢ono¢rn basis unless it is inappropria1¢ to prcsutne that the Charity will continue in business. The Trnstees ar¢ r¢spon5iblc for keeping proper a¢¢ounting records which disclose. with reasonablc accuracy at any tim¢. thc financial position of the Charity and to cnable them to ensure that thc Financial Statements comply with thc Chariiies Act 201 I, trust dccd provisions, Ihe Housin? and Regeneration Act 2008 and the Accounting Direction for prik'ate registfrcd providers of sixial housing in England 2019. They are also responsibl¢ for safeguarding the 2ss¢ts of the Charity and hence for iaking Tca50nable steps for ihe preN'ention and detection of fraud and other irtegularities. Statement as to Disclosure of InformAtion to Auditor5 So far as the Trustccs are a￿,are, there is no rel¢vant audit information of which the Charity's auditors are unaware, and each Trust¢c has taken all th¢ si¢ps that thcy ought to have taken as a Trustee in ordcr to make themselve5 aware of any relevant audit infomiation and to eslablish thai the Charity's auditors are aware of that inforniation. Page 3 The New College of Cobham Report of the Trustees For the Year Ended 31st M#rch 2025 The Trustces have approv¢d the report above for the year ended 31 March 2025 and have authorised me to on their bchalf. pcr- resident Dai¢ of Approiral.. Page 4 Independent Auditor's Report to the Trustees of The LYeM' College of Cobham We have avdited the Financial Statements of The New College of Cobham for the year ended 3 Isi March 2025 cotnprise the Statement of Financial Activiti¢s, Stal¢mcnt of Financial Position and Not¢s to the Financial Statements, an¢luding a summary of significant accounting policies. The financial reporting fraM¢￿'ork thai has been 8ppli¢d in their preparation is applicable law and United Kingdom Accouniing Standards. including Financial Reporting Standard 102 'The Financial Rcportino Srandard applicable in ihe UK and Republic of Ireland, Iunitcd Kingdom Generally Acccpted Accounting PrdCticc}. Opinion on Financial Statemen15 In our opinion ihe Financial Statements= give a true and tair view of the state of the Charity's affairs as at 3 1st March 2025 2nd of its incoming resour¢¢s and application of resource5, including ils incomc and expenditure. for th¢ ycar then ended,. have been properly prep￿d in accordan¢e with United kn'ngdom Generally Accepted A¢¢ounting Practice., and have been prepared iii accordance with the rcquiremenis of ilie schemc set up under the Charilics (The New College of Cobhaml Oidcr 1978, the Aci of Parliamcnt of the year 1597 and amended by Se¢tion 14 of the Rochestcr Bridge Act 1908, th¢ Housing and Regeneration Aci 2008, the Accounting Direction for Private Registered Pro￿.]d¢r5 of Social Housing and thc Charities Act ?01 l. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS IUKI) and applicablL law. Our responsibilities under thosc standards are fiirthcr dcscribed in the Auditors, responsibilities for thc audit of the finan¢ial statements section of our report. We are indepei)dent of thc Charity in accordance with the ethi¢o1 r¢quireinents that are relevant to our audit of ihe financial statements in the UK, including the FRC'S Ethical Standard. and the provisions available for small entities, in the cirLum5tanLes set out in note sixieen to the financial siaiements, and we have fulfilled our other cthical responsibilities accordance with Ihese r¢qiiircments. Il'e beli¢N¢ th31 the audii ei'iden¢¢ we have obtained is sufficient and appropriate to pro￿lde a basis for oiw opinion. Conelu$ions relating to going Concern In audiling thc financial sialements, wc have concluded that thc Trustees, use of th¢ going concern basis of accounting in the preparation of the financial siatementb is appropriate. B2scd on the work we haN¢ p¢rfonned. we have not idcntified any material uncertainries relating to ei'cnts or ¢onditions that, individually or collectively, may ¢ast significant doubt on thc Charity's ability to continue as a going concern for a period of at least iweli'e months from when the financial stat¢ments are auihorised for Our responsibilities and the responsibilities of the Trustees with respeei to going concem are described in the relevant scctions of this report. Other information The Trust¢¢s arc responsible for thc othcr information. The other infonnation compri5¢S the information in (he Report of the Trusiees, but docs not include the financial siatements and our Rcport of the Auditors thereon. Our opinion on thc financial statements does not cover the other infonnation and, except to the extent otherwise explicitly stated in our report. we do not express any fomi of assurance conclusion thcreon. Page 5 Independent Auditt>r's Report to the Trustees of The Trie￿. College of Cobham Other Information (continued) In conneciion with our audit of the financial staiements, our responsibility is to read the other infomiation and. in doing so, consider whether the other infomarion is materially inconsistent with the financial sialeinents or our knoi¥,ledge obtained in the audii or otherwise appears to be maierially misstared. If we idcnlify such Inat¢rial inconsistencics or apparcnt tnatcrial mi5St&lcmcnts, Th'c are rcquircd to detcrniine whether this gives rise to a material misstatement in the financial statements themSel￿eS. If. based on the work we hak'e performed. we conclude ihat there is a material missiaiement of Ihis oiher infomiaiion, we are required 10 report thai fact. We ha￿e nothing to report iii this regard. M#tter$ on whif h M'e are required to report by exeeption Wc havc nothing to rcport in rcspLCt of the following mattcrs in rclation to which the Charities (Accounts and Reports) Regulations 2008 requir¢ us to r¢p(>rt 10 you if, in our opinion.. infonnation given in the financial staiements is inconsistent in anv material respect with the Report of Ihe Trn.%ieeg; or sufficient and proper a¢¢ounting records have not b¢en kept by the charity,. or the fin2n¢ial stat¢ments tt￿ not in 2ereem¢nt with the a¢¢oiinling r¢¢orits and retums: or w¢ hav¢ not rcceii'cd all the infonnation and ¢xplanations w¢ ￿quire for our audit. Responsibilities of the Trustee5 As explained more fully in the Statcmeni of TNstees' Responsibilities set out on pagc threc, thc Trustccs arc responsible for ihe preparaiion of ihe financial statements and for being satisfied that ihey give a true and fair le￿., and for such iniemal ¢onirol as the Trusiees deterniine necessary, to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In pr¢paring the tin2n¢i31 stat¢Tn¢nts, th¢ Trust¢¢S dr¢ r¢sponsible for assessing the Charity's ability to ontinue a5 a going conc¢rn, disclosing, a5 applicable. matters related to going concern and using tlie going ¢on¢ern basis of a¢¢ounting unl¢.%% th¢ Tru%t¢¢s ¢ithcr int¢nd io liquidate the Charity or to cease operations, or hav¢ no realisti¢ alternativ¢ bul to do so. Auditor's responsibilities for the audit of the financial statement$ Our objectives are to obtain reasonable assurance about wl)cther tl)e financial stalcmcnts as a ￿.￿Ole are free from material misstatement, whether due to fraud or etTor, and to issue a Report of the Auditor5 that includes our opinion. Reasonable assurance is a high Icl'cl of assurancc, but is not a guarantc¢ that an audit conductcd in accordance H-ith ISAS IUKI will always dctcct a material misstatctncnt when it cxists. Mi5Statemcnts can arise from fraud or error and are considered tnaterial if. indii'idually or in the aggT¢gatc, th¢y could rc&%onably bc cxpectcd to influencc thc cconomic dccisions of uscrs takcn on thc b38is of thcsc financial stat¢mcntS. The extent to which our procedures are capable of detectlDg irregularities. including fraud is detailed below.. Our approach to identifying and assessing the risks of tllaterial mi5Stat¢Fnent in r¢sp¢ct of irregularities, including traud and non-colnpliance witl) law5 and regulations, ￿'aS as follow5.. Th¢ engagement partn¢r ensured that the engagement te2m Collectively h2d the appropriate competen¢e, capabilities and skills to identify or rtto¥nise non-compliance with applicable laws and regulations; We identified the laws and regulations applicable to the Charity through discussions with Trustees and oiher management, and from our comm¢rcial knowledge and experience of (he business sector., Page 6 Independent Auditor's Report to the Trustee5 of The Lle￿. College of Cobham Auditors, respon$ibilities for the audit of the fingocial statements {continued) We focused on spccific laws and regulations ￿.hICh we considered may hai'e a direct material ¢ff¢it on the rinan¢ial statements or Ehe operations of the Charity. including taxation legislation and data protection, anti-brib¢ry, employment and healih and safety legislaiion.. We assessed the extent of complian¢¢ with the laws and regulations idcntified above through making ¢nquiri¢s of management.. and Id¢ntified laws and regulations were communicated within th¢ audit team regularly and the tcam remained alert to instances of non-compliance throughout the audit. We assessed the suscepiibility of the Charity's financial staiem¢nt5 to material misstaiement, including obtdlTiing an understanding of how fraud might occur. by.. Making enquiries of management as to where they considered there was susc¢ptibility to frdud, their knowledge of actual, 5U5pected and alleged fraud,. and ConsidL'rin¥ thc internal controls in plo¢e to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through managcnieiit bias and o%"¢rridc of controls, we.. Perfomied analyiical procedures to identify any unusual or unexpected relationships; -Tested journal entrics to identify unusual transaction5,' Assessed wh¢th¢r judgements and assumptions Inade in delemiining ihe accounting estimates wcre indicative of potential bias: and In￿estigated the rationale bchind significant or unusual transactions. In response to the risk of irregularilies and non-complian¢¢ with laivs and regulations, w¢ designed procedures which included, bilt w'ere not limited io.. Agreeing financial ststemeni di5¢105urcs to underlying supporting docutnentation.. and Enquiring of managen)ent as 10 actual and potential litigation and claims: A further dcscription of our respon5ibilitie8 for the audit of the financial statemenis is located on the Financial Reporting Council's website at ￿m￿.ftc.Org.uk/audItorSrespon$Ib]lltlC5. This description foms part of our Report of the Auditors. Page 7 Independent Auditor'5 Report to the Trustees of The College of Cobham Use of our report This rcporl is made solely to ihe Charity's Trustees, as a body. Our audit H'ork has been undcrtakcn so that we might state to the Charity's Trusiees thos¢ matters ive are required to stale io theni in a Report of the Auditors and for no other purpos¢. To the fullcst cxtent pennitted by law, we do not acccpt or assume responsibiliiy to anyone othcr than thc Charity and th¢ Charity's Trustees as a body. for our audit work, for this iet)ort, or for the opinions ive have formed. Natalie Harrison FCA FCCA CTA TEP Iseryior Statutory Auth"tor) for and on behalf of Beak Kemmenoe Chartcred Accoiintanis & Statutory Auditors 1-3 Manor Road Chatham K¢nt ME4 6AE Date= 1% loilioi Pag¢ 8 The New College of Cobham Statement of Financial Activitie$ For the Year Ended 31st March 2025 2025 2024 Notes IYCOII IE AIJD ENDOMTrqElI'TS FROM". Chdiitablc acti&'iiies Investtnenis 236.287 2,218 231,855 3,208 T0121 238,505 235,063 EXPENDITLRE ON: Charitable actii'ities 315,603 401,467 Total 315,603 401,467 OPERATING SURPLUSI(DEFICIT) 77.098) 1166,4041 NET GAI.YS LOSSES OP4 IJ'N'ESTNIENI TS: Gains.:'Ilossesl in￿￿tment assets 2,515) 13,909 TOTAL COIMPREHEP*'SIVE INCOME AP¥D NET NIOIIENIENT IN FUNDS 79.613) {152,4951 RECOYI CILIATIONI OF FUYDS: Totsl funds brought forward .230,733 1.383,228 TOTAL FUISDS CARRIED FORM'ARD 1,151.120 1,230,733 COPITINUING OPERATIOf*S All income and expenditure have arisen from continuing acti￿.]Iles. RESTRICTED FLl44DS No reslricrions have bccn placed on any of the Charity's incoming resources in the yettr and accumulated funds brought forward. Funds are used in accordance with th¢ charitable objeciives at th¢ discrction of the Trustees. Page 9 The New College of Cobhatn Statement of Financial Position At 31st March 2025 2025 2024 Notes FI.XED ASSETS Housinty properti¢S Other property Inv¢stm¢nt5 10 10 904,897 37.200 125 980 922,669 37,200 128,495 1,068.077 1.088,364 CL,RRENT ASSETS Stock5 Dcbtors Cash at bank and in hand 4,586 2,790 90,819 4,594 1,076 163.342 13 98,195 169,012 CREDITORS Amounts tallino due ￿.]thin one year 14 115,152) {26.643) Tr4ET CURRENT ASSETS 83.043 142,369 TOTAL ASSETS LESS CURRENT LIABILITIES ,151,120 1,230,733 NET ASSETS 1.151.120 1,230,733 FU.NDS Unrestricted funds 1,151,120 1.230,733 TOTAL F￿Ds .151,120 1.230,733 ThL' Financial Stat¢mcnts were approved by the Board of TnJgte¢s on 28111202G and were signed on its Ifby.. R Cooper- PrL¥ident P Filmer - Trustee Page 10 The NeiTr' College of Cobham Ilotes to the Financial Statements For the Year Ended 3151 March 2025 STATUTORY INFORNtATIOY The New College of Cobhani is a registered Alinshouse Charity goi'crncd by Act of Parliament of 1597 and by th¢ Charities Act 201 l. The Charity's registered number and principal office addresb ¢an be found on page l. ACCOUNTING POLICIES Basis of preparing the Financial Statement$ Th¢ financial stat¢tncnt5 of the Charity are prepared in accordance with UK Generally A¢c¢ptcd Accounting Practice (UK GAAPI including Financial Reponing Siandard 102 'The Financial Reporting Standard applicable in the Uniied Kingdom and Republic of Ireland, IFRS 102), the Housing SORP 2018.. Statenient of Rc¢omtn¢nd¢d Practicc for Rcgislcrcd Social Housing Proi'iders and comply with the Accounting Direction for Privatc Registcred Providers of Social Housing 2019, except tliat c¢rtain fr¢chold propcrty Is shown at i'aluation ￿,hiCh is explained in more detail in Note 10. Th¢ financial 5tatcmcnts havc bcen prepared under the historical cost convention. The Charity is # publi¢ bcnelit entity. The proi'isions of Sectioii IA 'Small Entiiies" of Fiiiancial Reponing Standard 10? 'Thc Financial Reporting Standard applicable in the UK and Republi¢ of Ireland" and the Housing SORP do not require a small enliiy to produce a ¢&gh flow siatement. The Charity has taken adi'antage of this exemption. The functional and presentation curr¢ncie5 Of th¢ financial statement5 are Pound Sierling (£1. Going concern The Trllste¢s haN'¢ rcvi¢M'ed future budget5 and cash flow projections in conjunction with the cutTent economic ¢lim3t¢, in ordcr to cxprc5s an opinion on thc adcquacy of ￿'Orking capiial and the ability for the Charity to ¢ontinu¢ as a going conccrn for tt]c forcsccablc future. The Trustees continue io loreca5t that the Charity will operate within its financial constrainis for a period of at leasi 12 tnonth5 frojn thc appro￿.a] of the financial staiemenis. There are no material uncertainiies about the Charity's ability to continue. Income Inconic compriscs of maintenance charges from tenants and other rental receipis. All iiicomc 15 rccognis¢d in th¢ SOFA once the Charity is entitled to the funds. ]( is probable ihat the incom¢ ￿.111 be Teceii'ed and the amount can be measured reliably. Grants and donations are onl! included in ihe SOFA when the Charity has unconditional entitl¢m¢ni lo th¢ resources. Gainslllos5csI on In￿eSt[￿ent assets include5 any gain or loss on the sale of investments and any gain or Ios5 1¢sulting fiotn r¢valuing invcstments to market value at the end of the year. Expenditure Liabiliiies are recognised as expenditure as soon as th¢r¢ is a legal or constructive obligaiion committing the Charity io that expend2ture. it is piobable that a tran5f¢r of ¢conomic benefits will be required in seiilenient and the amount of the obligation can be measuTed reliably. Page 11 The Tr4ew College of Cobbam Notes to the Finaneial Statejnents - continued For the Year Ended 31st March 2025 Accouf4TING POLICIES -continued Expenditure on charitable activities This comprises all the resources expended by th¢ charity in undertaking its work to meet its charitable objectives. Ir includes both the direct costs of charitable actii'ilies together with the support cogtg iiicurred that enable ihese a¢tivitics to be undcrtaken. The Chariry does not spcnd resources raising donations and legacies, all cxpcnditurc has been caiegoribed as ¢hari12ble expenditure. Repsirs and renewals Major building improvements are ¢apitaliscd, the costs of maintaining the buildings are written off as incuned. The toial expendituie on works to existing Properties during the reporting period amounted to £159.17] (2024.. £263,059), all of which has been charoed to (he SOFA. Taxatio Th¢ ¢ntity is a registered charity and as .%uch its incomc falling within Seciion 524 of ITA 2007 are cxctllpt from Corporation Tax to the extent that they arc applied io its charitable purposc. Fund accounts Unrestricied funds can be us¢d in accordancc with the charitable obje¢ii>'es at thc discreiion of th¢ trustees. There ar¢ no funds with additional resirictions. Tangible fixed assets The Charity's buildings are classified as property, plant and ¢quipment as they are us¢d in achieving th¢ Charity'5 objectii'es rather ihan held for irhvestment PUTposes. Thc Collcgc buildings are maintained io a high stat¢ of rcpair so it is considered ihai the rcsidual ￿'aLUe remains above cost. accordingly no depreciation i.￿ charged. A historic valuaiion is used in place of initial cost. Thc frcehold land is held at a historic valuation in place of cost and is not dcprcciated. The Trustees haN'e depre¢iai¢d the Sionehouse Yard buildings over fifty v¢ars rcpresenting their estimated useful life. Where developments haN'e be¢n financ¢d wholly or partly by grants. the cosi of thc assets is presented in the statement of financial position by deducting the grant in atTiving at ihe carry'ing amoiini of the asset. In*'estments Invcstmcnts are listed equiry investhientl initially measured at fair Tr'alue ￿'1th any subsequent fair valuc gains or losses recognised in lh¢ SOFA. Fair valu£ 15 detem]ined by the quoted market price. Li51cd invc5tmcnis are categorised as fixed assets 2S the Charity plan5 to use ils bank a%scts to fund irs charitablc expendirure and ￿.111 only consid¢r sclling thc investments once ihese hav¢ been depleted. Cash held in interest bearing bank accounts is caiegvris¢d as cash at bank. Sto¢ks Stocks consist of informative leaflets which are valued at the lower of cost and net realisablc value. after making due allowancc for obsolete and slow. mok'ing items. 12 The New College of Cobham Notes to the Financial Statements- continued For the Year Ended 31st March 2025 ACCOL'.NTlING POLICIES-continued Financial instruments Financial assets and financial liabilities are recognised when the Charity becotncs a party to th¢ contractual provisions of the instrument. Financial liabilities and ¢quity instruments are classified according to the subsiancc of ihe contractual arrangements ¢ntered into. All fjnancial assets and liabilities are initially tnea5ured at transaction price {including transaction ¢ostsl, cxcept for those financial asset.% ¢lassifi¢d as at fair i'alue throuLTrh profit or loss, which are initially measured at fair value {wt]ich is nornially the transaction price excluding transaction cosis). Financial assets and liabilitics arL only offsei in the balance sheet when. and only when ihere exists a legally cnforccablc right to set off the re¢ogniscd amounts and the Charity intends ¢ithcr to settle on a net basi5, or to realise the asset and sertle th¢ liability simultaneously. Debt instruments that comply with all of the condition of paragraph 11.9 of FRS 102 are classified as 'basic'. For debt insirunients that do not meet the conditions ol- FRS 102.11.9, the Chariiy consid¢rs Ivhether the debt instrument 15 consistent with the principle in paragraph I1.9A of FRS 10? in Drdcr to determine ivherher it can bc classified as basic. Instrnmenis classificd as 'basic' financial instrutllciits are measu￿d subsequently at amortised cost using th¢ ¢tf¢ctivc interest meihod. Debt instruments that have no stated interest rale land do not constitute financing iransaction) and are cl255ifi¢d as payable or receivable within on¢ year are initially measured at an undiscounted amount i)t th¢ cash or other consideraiion expected to be paid or received. net of impainncnt. Other debi Instruincnts noi meering condition.% of b¢ing 'basic' financial insrruments ale Tre85urcd at fair ￿a]ue through profit or loss. Financial assets are derecognised wh¢n and only whcn a} thc contractual rights to th¢ cash flows from tl)c financial assei expire or are settled. or bl th¢ Charity transfers io another party substaniially all of the risks and rewards of ownership of the financial asset. Financial lidbilities art derecognised only when the obligation specified in the contract is discharged. cancelled or expir¢s. Critical accounting Judgement$ and key sources of estimation uncertaintv In the application of the Charity's accoiinting policies. the Trustees are required to make judgements, estiii)ates and assumptions about thc carrying amounts of assets 2nd liabiliti¢s that are not readily apparent from other sources. Thc ¢5timates and associated assumptions ar¢ ba5¢d on histoiic21 experience and other filclurs that arc coiisidercd io be relevant. ActU