Registered number.. 01332670 Charity number.. 274605 FARMLAND RESERVE UK LIMITED TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
FARMLAND RESERVE UK LIMITED CONTENTS Page Reference and Adminlstrative Details of the Charlty, its Trustees and Advisers Tru5tees' Report 2-10 Independent Audittsr's Report on the Financlal Statements Consolidated Statement of Financial Activitiès 15 Consolidated Balance Sheet 18- 17 Charity Balance Sheet 18- 19 Cortsolidated Statement of Cash Flows 20 Notes to the Flnancial Statements
FARMLAND RESERVE UK LIMITED REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022 Trustees B M Conway. Trustee P A Tolrnan, Trustee DLRose Company Registered Number 01332670 Charity Registered Number 274605 Registered Office Manor Farm Church End Wood Walton Hunlingdon Cambridgeshire PE28 5YU Company Secretary J Garlic Independent Auditors MHA Chartered Accountant5 1 The Forum Minerva Business Park Lynch Wood Peletborough PE2 6FT Bankers Natwest 92 High Street Hunlingdon PE29 3DT Solicitors Devonshires 30 Finsbury Circus London EC2M 7DT P8ge 1
FARMLAND RESERVE UK LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The Trvstees, who are also directors for the purposes of the Companies Act of the cornp3ny (The Charity Farmland Reserve UK Limiledl, present Iheir annual report together with the audited financi31 slaternents ol The Charity and its subsidiary (Tlie Charity and The Group) for the year ended 31 December 2022. The Truslees confirrn th81 the financial statements of The Charity and The Group comply with Ihe current provisions of FRS 102 and the Charities SORP 2015. Objectives and Activities Objectives and prin¢ipal activities The objecl of The Charity is.. To promote and further the religious and other charitablo work of The Church Jesus Christ of Latter-day Saints in the Ui)Ited Kingdom and elsewhere 311d to assist members and other persons who are in conditions of need. hardship, Sickness and distress, to all ages and denomination5. The Charity will support charitable organisations. Iiusts, associations 01 institutions formed for any ol the charitable purposes included in the Objects, through the piovision ol sponsorship, gr3nlS or other financial or in- kind contributions. The Charity holds tangible investments in farming and their associated assets to generate funds for ils objectives as previously staled. Details ol their performance can be found In the 'Financial Review" section and "Subsidiary Undertakings" subsection under the'structuie. Governance and M8n8gemenl section. The Tmstees regulady interact with Feprssenlalives of The Church ol Jesus Christ of Lalter-day Saints. Ul8h Corporation Sole I'chuich Corporation") (formerly known as The CorporaliorTr of the Presiding Bishopric ol The Church of Jesus Christ of Lalter-day Saints "CPB.) lo discuss making significant donalions to support Church Corporation's international buildillg projecls for religious purpose bui5dings and other projects which both Church Coiporation and the Church had approved around the world. 11 was decided that this would be a better malch land easier lo monilorl to the Charity's objeGlivès rather th8n making individual donations to various charilable org8nisalions within the UK and elsewhere. The Tryslees investigated the way in which these projects were identified and 2pproved by internal Church committees. the type of projects 2nd their religiou5 and charitable purposes. Further, they were h8ppy with the iiifiastruclure and controls that Church Corporation h3d in place lo ensure proper implemenlalion of ihase projects. . Achievements and Perfomiance During 2022 the TILislees linalised plans to make another dollation lo Church Corpor8tson_ On 291h December 2022, a donation of £130.000 1$157,7281 was transferred from The Charity, to sister Chaiity, Church Corporation. Church Corporation identified a number of specific projects for implemenl3lion inlernalionally in pursuit of its purposes to the success of which The Charity has now had the opportunity to contribule £130,000 lo these C3uses. Page 2
FARMLAND RESERVE UK LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2L122 The following projects were identified by Church Corporation to ulilise the donation. Humanitarian Pro ects UK Canterbury Stake Clirislmas food boxes and essenli315 lo vulnerablelpoor $1.643.83 UK Billingham Slake "Hèat, Meel & Eat Week" a wann place, where people rneel and eat for a whole week for More than 1000 people Provide the needed items that are not regularly donated such as sleeping bags, winter coats, personal hygiene items Wakefield District ol Provide asylum seekers and refugees in the Wakefield $4,212.33 Sanctury are3 with educational rnalerials lor children and young people Proiitde maleiials and supplies for the Irainino of skills $1,095.89 for refugees, and displaced persons Pioiode basi¢ cookinglkitchenlhousehold $18,328.77 applianceslequipillenl for Prolde for As)4um Seekers and Refugees wintèr Clothing lor the Crawley area, Winter coats. jumper, jogging bottoms Jesuit Refugee Service Distribute vital phone credit and internel data to 250 $12,328.77 refugee friends who are at risk of digital exclusion welMe to English Refugee and asylum-seeking men the $6,301.37 cic Hulllcollingham, UK area will have access lo experien5 and classroom activities with the go31 of improving their ability lo communicate in English. Herts Welcomes Fifty Asylurn seekers and Refugees in the Hertfordshire $7,123.29 Refugees HWR area of the United Kingdom will r8ceive vouchers for purchasing w8rm clothing and essentials as winter and the school year approaches. Hull Help forRefugees Clothing and essential items will be provided to 87 $14,250.00 asylurn seekers in Hulllcottingham ère3. Sixteen refugee and asylum seeking indiiridu2ls will be $4,991.78 involved In a sewing class for a period of six tnonth5. Area PurGhase items needèd lo assist refugees fleeing Ukraine. Provide funding for dothing kits for 380 children. $7,397.27 UK Sheffield Stake $3,150.69 UK UK Billingham Stake UK C3rdiff Stake UK Sussex relug6èS $28,890.41 UK UK UK UK UK CREST UK Charity UK Europe Presidency Slaines Slake $40,000.00 UK $8,013.70 $157,728.10 A Donalion for 2023 is currently under review. £1.OM has been set aside lo support 5ever81 projects. Public Benefit The Trustees have reacl and given due regard to the guidance on public benefit published by The Charity Commission in exercising thèir powers and duties. Financial RevSow • Flnancial results Each year, The Trustees carry out a detailed review ol The Gharily. They review the pvIOuS yeals achievements. and review and approve the budgets for neKt year. Page 3
FARMLAND RESERVE UK LIMITED TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEM8ER 2022 The end ol the year 53w a significant increase IN Income during 2022 due to alarge donation fiotn the "Chur¢h Corporatioll. lo luncl the a¢quisilion of two large farming estates. The Coldham and Goole Estate were purchased iri the last quarter of the year from The Welcome Trust adding 8 furthei 8.000 acres ol land lo The Charity ownership. Total Income saw an irnpiovemenl during the year increasing from t7.5M in 2021 to £117.SM in 2022. The £117.5M Total Income in 2022 In¢ludes the donation from Chur¢h Corporation" totalling £108.5M. Income from ils tradillg subsidiary increased to £8.4M 12021.. £7.2MI and invèstment income increased to £0.04M 12021." £0.01 Ml. Costs, excluding tax, decreased during the year frorn £7.2M in 2021 10 £6.5M in 2022. A donation to 'Church Corporalion. wa5 made during 2022 lolalling 20.1 M. A larger donation £1.OM is currently planned lo be made during 2023. The total Nel movement in funds increased in the year by £110.7M. This is in contrast to 2021 where The Charity made a loss of I£0.2MI. Results of The Group were impacted by both favourable yields on winter crops and a conlinuallon of improved market piices. Dunng the 2021 autumn planting window, an initiative was implemented lo sliorten the planting window of the main winter ¢rops lo increase crop yield. The Summer of 2022 recorded high temperatures over long and sus13ined period, whilst iainfall was extrernely low. Yields on winter crops performed well above ave13ge levels even in the face of adverse weather conditions, crops planted in the spring of 2022 suffared from these drought conditions and achieved lower Ih3n sxpecled yields. Market pr1S for Cereals were still well above long teim Jverage prices during 2022 due lo a number of global laclors.. a continuation ol severe disruption5 In the agricultural supply chain caused by the Covid-19 pandemic and Brexit. wealher stories including drought In Biazil and the impact of the war between Russia and the Ukraine threatening the supply of eneigy. fÉrtiliser and the export of wheal to the world maikel. Investmènt policy and performance Under the Articles ol As50cialion, Thè Charity has the power to invest in any way the Trustees deem to be in the besl interests of The Charity. 2022 provided Ihe opportunity lo acquire the Coldhatll and Goole E51ate5 from the Welcome Irusl. prior lo acquisition the Truslees assessed this OPPOrtunily and re¢ognised it provided a unique opportLJnily to acquire assets that would contribute lo the lono-term goals ol The Chaiily. Due to the historical low volume of18nd sales this opportunity enabled an opportunity to accelerate The Charities goals towards land assets. With The Charities. position on rnainlaining liquidity and maximum security combined with the value of Ihese acquisitions necessitated a don81ion from 'Church Coiporalion lo lacililate the tran52cts'on. Due to both properties being approximalew 4,000 acres each in a piedoininanlly ¢onliguous nature meanl estates did not suffer from operational inefficiencies a5 sonie historical acquisitions Ism311er more scattered parcels) and remained consistenl w1th the st131egy of achieving concenlration of land holding8 around msjor farm locations. The Trustees are confident that these land large blocks will contribute towards advanced profitability and improved efficiencie5 across Ihe operation which in lurn will generate additionzl funds for future charitable work. Since these transactions have occurred the Tru51ees no longer consider their liquidity position to be high relative to the tangible assets owned bul continue wisely manage their liquidity position. To achieve this objeclive, The Charity by the year end hacs invested £10.7 million12021.. £22.1 million) ol excess funds in an Instant Access Interesl Bearing account with high security rating and achieved an average interest r21e of 0.85°k (2021.. 0.01.10 9rossl during 2022. Investment income is recognised on a receivable basis. Page 4
FARMLAND RESERVE UK LIMITED TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 ReseNes policy The Trustees have eslablished the level ol reserve5 Ilh81 is those funds that are freely available) lo which The Charity and ils subsidiary companies ought lo have ready access. Reserves are needed to bridge any funding gap between spending and receiving resources through shareholder grants and léasing of farmland. The Trustees. policy is to hold, as a minimum, the equivalent of approximately 12 months of operating budget in reserves. The aolual reserves reported at 31 December 2022 were £214.9M 12021.. £104.3MI which Is significantly above the Trustees, target due to retaining a portion for possible luluie agri¢ullur21 acquisitions as part of its ongoing consolidatioll effort5. 11 should be noted that of the £214.9M only £17.1M is freely available due to the rest of th& reserves figure being held in farming related assets to generate investment income lo make current and future donations. The curient level of cash reserves held exTreds the 12 months expenditure policy stated, this is due to awaiting lo reinvest ¢ash generaled from farm sales lor redeployment on land assets within the designated arèa for consolidation, as described in the investment policy section. In addition, the Trustees wish to observe that during 2022 plans have been rnade to make a significant chaiitable donation to causes th81 tneel The Charity's objectives. It is the Trustees, view that il is prudent to ensure that there are sufficient reserves to provide financial flexibility. The reserves policy is reviewed on an annual ba515. Structure, governance and management Governing documént The Charity conliiiues to be both a limited company and a iegistered Charity. In conjunction with this, The Charity is governed by its Memorandurn and Articles ol Association which were last atnended on 22 NovÈtnbÈr 2011. The purpose of The Ch8rity as set out in the govemrnenl document is laid out in the Objectives and Activities section ol this report, wilh the main activities undertaken in relation lo those purposes. Appointment of Trustèès As set out in the Articles of Associab"on, new or additional trustees are to be appointed by the shareholder (Farmland Reserve, Inc.) or by decision of the Trustees, providing such persons are willing so to acl either to fill 3 vacancy or as an addiliollal ttuslee. • Trustee induction and tralnlng New Iiustees undergo ali orienlalion day lo brief them on their legal obligations uiider Charity and Company law, the content of the Memoiandum and Artides of Assoaation, the cornmiltee and decision-making pro$Se$, the business plan and re¢enl finanaal performance of The Charity. During the orientation day Ihey meet key employees and other trustees. Ttustees are updated and advised on legal issues by Devonshires Claims. Organisation The sole shareholder of The Charity is Farmland Reserve, Inc. a non-profit corporation based in Ulah. USA. Direction is channelled to The Charity w8 the shareholder and is reflected in the various department budgelslplans wl)ich are reviewèd and approved by the Trustees annually. Page S
FARMLAND RESERVE UK LIMITED TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Within this fiamework, the board ol Iruslees administers the affairs of The Chanly. The Trustees tmonitor progress and achievements throughout the year, and other Iruslee meelinos are held as necessary. The Iruslees direct Ihe Chzrity and the operation of the Charity on a day lo day basis is delegaied lo the Senior Management Team. The pay of the Senior Mallagemenl Team is reviewed annually by Trustees and is benchmarked against the pay ol others in Similar charitable roles. Related parties The Charity hold5 1W¢A of the share capilal ol its subsidiary companies, AgReserves Lirniled. . SL2bsidiary undertakings AgReserves LimilÈd's prinapal activity coiitinued to be that of 8r3ble farming and il operates a policy ol generating the highest profi15 feasible from efficient farming techniques that ulilise the lalesl technology. AgReserves Lirnited leases and operates all of the farmland owned by Farmland Reserve UK Limited. The Trustees are mindful thzl the small and somewhat sCatted nature of some of the parcels of land do lead lo some 13baur and equipment inefficiencies. The Trustees believe Ihat this weakness In the operations ol the farms can be overcome by consolidating land holdings around major farm nIFeS in Cambridgeshire and Yorkshire. This process ol consolidation began in 2008 and has continued through to 2022. The piofil for Ihe year of thè subsidiary AgRe5erves Limited induded in the statement of financial activities was profil of £1.4M12021.. £1.2MI. Risk management The Trustees have assessed the major risks to which ThÈ Charity and the group are exposed. in particular Ihose rel8ied lo the operations and finances ol The Charity and the group, and are salisfied that sysletlls and procedures are in place to miligale our exposure to the major risks. The risk manaoement strategy of the Trustee5 Indudes an annual review of the principal risks, The Trustees regularly review Ihe procedures in place lo miligale risk. Employees The Charity wll ensure that any ernployees are able to weet the necessary requireTnenlS of their position and are up lo date on any developments required for their position. This is achieved in a variety ol ways.. Applications for new positions in The Charity would be invited from anyone with the relevant qualifications th8 key emphasis is on their ability lo meet the rèquirements of the position although the gpplicalion foim requests the appliG3nl mention if Ihey have any illness 01 medical condition which the employer would need lo be aware ol in order lo make reasonaNe 8diustmenls should they be successful. The Group ulilis85 regular staff meetings during the year which help to ensure Ihal the employees, input Is reIVed iegarding 3ny decisions which affect their interests. In addition, thère are websites and e-mail falitIeS available lo enable more effective communication and tiaining. This helps lo ensuie that employees receive systèmatic updates on mallers concerning them as ernployees and ensures their involvement in relailon lo the financial and economic factors that affect the performance of The Charily and The Group. In addition lo the above points. The Charity is mindful of the need to cater for those with disabilitiés. Where 8ny employees become incapacitated during their employment they would be entitled lo receive loiig-term disability benefits from The Charity. Where an employee becomes disabled bul not incapaatated the employer wll make any reasonable adjuslmenls necessary. The same opportunities are available lo all staff. irrespeclive of disability. The key emphasis is on the le¢hnical ability of each èmployee. Page 6
FARMLAND RESERVE UK LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 • Key Management Personnel The Charrty does not have any employees, all employees of The Group 8re ernployed by the subsidiary of The Charily. AgReserves Limited. During 2022, no Truslees of The Charily received any ietmuneration, benefits in kind or reimbursement of expenses from The Charity. nor incurred any expenses. Of the three Trustees only one is a member of the Key Mana9emenl Personnel of The Group and is employed by the subsidiary, AgReserves Limited. Key Mana9ewenl are paid within the banded 531ary structure ol the subsidiary. Regular benchmarkino and independent markét reviews are condueled lo ensure that Pay remains reflective of f8ir market value and competitive enough to encourage retention ol key staff. Benchmarking exèrGises occur on 2n annual basis, with an independent market review O¢Gurring every 5 10 10 years. During this piocess, a review is conducted not just foi Key Management but a51 working slall of The Subsidiary. Referance and administrative details Registered name and number The registered name of The Charity is Farmland Reserve UK Limited. The Charity doe5 not use any other names. The Charity registration number is 274605. The Charily is registered with thè Charity Commission in Engl8nd and W21e5. The company registration number is 1332670. Office The principal and registered office address is Manor Farm, Church End, Wood Walton, Huntinodon, Cambiidgeshire, PE28 5YU. Directors and trustees Thé Iru51ees who served during the year and subsequenl lo the year end and up to the date of signing the report were as follows.. DLRose 8 M Conway P A Tolman None of the trustees have qualifyqng third party indemnity ifjsurance. Funds held as custodian trustee on behalf of others The Charity does not hold funds as custodian Iruslee on behalf of others. strategic Report Principal risks and uncertainties Financial risk and management The main risk The Charity faces is that It relies on income from the leasing of all the farmland il owns to it5 subsidiary undertaking. The Charity has sufficient reserves lo meet Ihe needs of ils charitable activities for the foreseeable future and ha5 assurances of continuing support from the parent company. Page 7
FARMLAND RESERVE UK LIMITED TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Other forms of risks and the management of thése risks are.. Price risk Salary eosls are commLJnicaled lo staff of The Group during the formal annu21 review of salaiies. Prices of tnaterials purchased are subject to contracts with suppliers, based on current market prices. As part ol the nalure ol agriculture the cotnpany is subject to price variaiions, bul 8clive efforts are made lo manage this risk by taking advantage of regular market information, lorw2rd conlracls, and owning sufficient sior2ge. These slorage faGililiès allow the company to piice and deliver product5 away from the harvest window whioh is well known lo be a period ol depressed prIs. Credit risk Credit risk on amounts owed to The Charity by its customeis is low as the main debtor is AgReserves Limited which is a wholly ownèd subsidiary. Credit risks on ainounts owed to the group are actively monitored. The Group continues lo make every effort to minirnise exposure lo customer credit risks and a112ppropriate steps are taken to reduce this risk. Liquidity risk The Charity has no long-lem) borrowings. Assurances of ntinuIng financial support have been iecéivéd from the parent eompany. Interest rate cash flow risk The Chgrily is able lo place surplus funds on short lem) deposil with the Charity's bankers. With the present banking interest r8les being so low there is a risk that the Charity does not fflake the besl use of surplus cash and therefore evely ellort is being made lo review all options that would bring the highest rales possible. Currency rate risk As a result ol Brexit, the 2022 BPS Subsidy reiVed from the Rur81 Payments Agency was paid lo Ihe subsidiary in Pounds Sterling. It is therefore highly unlikely that Ihere will be a need to enter into any future foNarcl dealing facilities, this almost entirely èlirnin31es any currency rate risk. Key perfomiance indlcators IKPlsl To measure the effectiveness of The Charitls stralegy and ils implementation The Trustees have identified the following KPIS.. 2022 £2.9M 2021 £2.4M 2020 £1.7M 2019 £2.OM ?018 £2.OM Prolilabilily ol Farming er2lions Donations Received £108.4M £O.OM £O.OM £O.OM £O.OM Resources expended on chariijble activities Unrestrictèd Funds Unrestiicted Funds re3dily 8vailable I£0 ?Ml 1£2.6MI 1£0.5MI 1£1.5MI (£0 8MI £214.9M £17.1M £104.3M £25.3M £104.5M £26,6M £103.3M £28.OM £102.8M £28.7M Page 8
FARMLAND RESERVE UK LIMITED TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Plans for future periods The goals for 2023 Include plans to.. 1. Continue lo enhance the profilabilily and efficiency of the fartms through well-ieasoned acquisilions lo achieve, over time, a concentration of land holdings around major farm lo¢alions. Any future aequisitions will be funded from retzined reserves or if necessary, donations from the Church Corporation. Along with well-reasoned acquisitions, a regular operational review of currently held f8rms occurs. New technology and Scien are continually reviewed and vetled to see if it warrants integration with daily operations. 2. To carefully monitor the balance of unrestricted funds while striwng lo achieve the concentration efforts identified in goal one, so that funds can be pul to the use of The Charity's obje¢tives as swiftly as possible. 3. Identify other charitable organisations. trusts, associaliolls or institutions formed for any of the charitable purposes included in the Objects, to support through the provision of sponsorship. grants or other finanu81 or in-kind ¢onlribulions. Trustees. responsibilities statement The Trustees Iwho are also directors of Farmland Reserve UK Limited lor tlie purposes ol cornpany lawl ale responsible for preparing the report of the Iiustees (incorporating the strategic report) and the financial statements in accordance with applicable law and regulations. Cowpany law requires the Trustees to prepare financial statements for each finanrial year. Undei that law, the Trustees have elected to prepare financial statements in accordance wtth United Kingdom Generally Accepted Accounting Practice Iunited Kingdom Accounting Standards and applicable lawl, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under oompany law the Trustees must not approve the financial slalemenls unless they are satisfied that they give a true and fair view ol the slate of affairs ol the eharilgble company and the group and of the incoming iesources and application ol resources. including the income and expenditure, of the charitable groL5P for that period. In preparing these financial statements, the Trustees are required lo". select suitable 8ccounting policies and then apply them consislenlly, observe the methods and principles in the Charities SORP IFRS 1021., 4 makè judgtnents and accounting estimates that are reasonable and prudent,. and prepare the financial statements on the going concein basis unless it is inappropriate to presume that the charitable oroup will continue in business. The Trustees are responsible foi keeping adequate aceounling records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable ac¢ur2Cy 81 any lime the finanaal position of the company and enable them lo ensure that the financial slalements comply with Ihp Companies Act 2006. They are also responsible lor safeguarding Ihe assets ol Ihe charitable company and hen¢e for taking reasonable steps lor the prevention and detection of fr8ud and other irregularities. The Trustees confirm that- So far as each Trustee is aware, there is no relevant audit information of which the Gharitable compan5ls auditor is unaware, and The Trustees have taken all the steps that they ought to have taken as Trustees in order lo make themselves aware of any ielevant audit information and lo establish that the charitable company's auditor is aware of Ihal information. Page 9
FARMLAND RESERVE UK LIMITED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Auditors Following a rebiaTrding exercise on 15 May 2023 the trading name of the charitable company's independenl auditor changed from MHA Maclnlyre Hudson lo MHA. The Designated Trustees will propose a molion re- appointing the auditor at a meeting of the Trustees. This report, incorporation the stialegiG report, was approved by Ihs Trustees, in Iheir capacily as company directors and signed on Iheir behalf by.. B M Conway Trustee Date". Page10
FARMLAND RESERVE UK LIMITED INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FARMLAND RESERVE UK LIMITED Opinion We have audited the Financi81 Slalefflents of Farmland Reserve UK Limited (the 'parent charitable companll and its subsidiaries (the 'group'l for the year ended 31 Decetnber 2022 which compiise the Consolidated Slalemenl of Fin3n¢ial Activities, the Consolidated 8212nce Sheet, the Ch2rity Balance Sheet, the Consolidated Statement ol Gash Flows and the related notes, including a summary of sigrFificanl accounting policie5. The financial reporting framework that h8s been applied in their preparation is applicable law and United Kingdom Accounting Slandaids. including Financial Reporting Standard 102 'The Financial Reporting Slandaid applicable in the UK 2nd Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the Financial Statem8nt5'. give a Iiue and fair view of the slate of the Group's and of the parent charitable company's affairs as al 31 Deoember 2022 and of the Group's incomirng resources and application of resources. including ils income and expenditure for the year Ihen ended.. have been propedy prepared in accordance with United Kingdorn Generally Apted Accounting Practice,. and have been prepared in 8ccordance with Ihe requirements of the Companies Act 2006. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in (he Auditors, responsibilities loi Ihg audit ol the Financial Slalemenls section of our report. We are independent (>f the Group in accordance with the ethic81 requirernenls that are relevant to our audit of the Finanual Statements in the United Kin9dom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that th8 audit evidence we have oblained is sufficient and appropriate to provide a basis for our opinion. Conclusrons relating to going concem In auditing the financial stat8men15, we have concluded Ihal the TrusteÈs' use of the going concern basis of accounting in the preparation of the financial stzlemenls is appropriate. Based on the work we have perforrned, we have not identified any tnaleiial uncertainties relating lo events or conditions that, individually or collectively. may cast significant doubl on the Group's or tlie parent charitable company's ability to continue as a going ¢oncern lor a periocl of at least tWee months from when the financial statemerTrls are aulhorised foi issue. Our responsibilities and Ihe responsibilities ol the Ttustees with respect lo going coiicem are described in the relevant sections of this report. Page11
FARMLAND RESERVE UK LIMITED INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FARMLAND RESERVE UK LIMITED ICONTINUEDI Other Infomiatson The other inforrnalion comprises the information included In the Annual Report other thzn the Financial Slalements and Dur Auditor5. Report thereon. The Truslees are responsible for the other infoimalion contained within Ihe Annual Report. Our opinion on the Finallcial Statements does not cover the other information and, exGept to the exient olhenvise explicitly Stated in our report, we do nol express any form ol assurance conclusion thereon. Our responsibility is to re8d the other informalion 8nd. in doing so, consider whÈther the other information is materially in¢onsislent with the Financial Slalemenls 01 our knowledge obtained In the course of the audit, or olhewise appears lo be materially misstated. If we identify such material inconsistencies or apparenl material miss121ements, we are reouired lo determine whelher this gives risé lo a material misst8temenl in the Financial Slalements themselves. Sf, based on the work we have performed. we conclude that there is a material misslatetnent of this other information, we are required lo report that fact. We have nothing to report in this reg3rd. Opinion on other matters prescribed by the Companies Act 2006 In our opinion. based on the WOTk undertaken in Ihe couise of the audit.. the information given in the Trustees. Report for the financial year for which the Financial Slalements are prepared is consistent with the Financial Slalernents. the Directors, Report included within the Trustees. Rèport has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowleclge and understanding ol the charilable company and its environment ob18ined in the course of the audit, we have not identified material miss13temenls in the Trustees, Repo We have nothing to report in respect ol the following matters in relation lo which Companies Act 2006 requires us lo report lo you if, in our opinion.. the parent chari13ble comp3ny ha5 not kept adequate and suffiuent accounting records. or relums adequate for our audit have not been reIVed from branches not visited by us., or the parent ohaii13ble company Finan¢i31 Statements are not in agreement with the accounting reeords and ielurns., or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require lor our audit. Responsibilities of truslees A5 explained more fully in the Tiustees, Responsibilitie5 Sl8lement set out on pages 9. the Trustees (who are also the Direclois ol the charitable company for the purposes ol comp8ny lawl ale responsible lor the prep8131ion of the Financial Statemer)tS and for being satisfied Ihat they give a Irue and fair view, and lor such internal control as the Trustèes determine is necessary to enable the preparation of Financial Slalement5 that are free from Tnalerial misstaternent, whether due lo fraud or error. In preparing the Financial Slatemenls, thè Trustees are responsible for assessing the Group's and the parent charitable companls 3bilily to continue as a going concern. disclosing, as applicable, matters lolaied to going conr and using the going concern basis of accounting unless the Trustees either intend lo liquidate the Group or the parent ch8rilable company or to cease operations, or have no realistic alternative but to do so. Page 12
FARMLAND RESERVE UK LIMITED INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FARMLAND RESERVE UK LIMITED ICONTINUEDI Audltors. responsibilities for the audit of the financial Statements Our objectives are lo obtain re8sonable assurance about whether the Financial Statements as a whole are freè from material misst2lemenl, whether due to fraud or eiror, and lo issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level ol assurance, bul is not a guaranteè Ih8t an audit conducted in accord8n¢e wilh ISAS IUKI will always detect a material misst3temenl when il exists. Misstatemenls can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected to inflLJence the economic decisions of users taken on the basis of these Fin8nCi81 Slalemenls. Irregularities, including fraud, are inst3nces of non-compli8n¢e with laws and regulations. We design proeeduies in line with our responsibilities. outlined above, lo delecl material misstatements in respect of irregularities, including fiaud. The specific procedures lor this engagement and the extent to wliith our procedures are capable of deteclino irregularities. including fraud is detailed below-. Enquiry of managetnent and those charged with governance around actual and potential lits'galion and claims., Enquiry of éntity staff to identify any instsnces of non-compliance with laws and ogulations,. Performing audit work over the risk of management override of controls, including lesling of journal entries and other adjustments for approprialene55 and reviewing accounting eslim3tes for bias., Reviewing minute5 of meetings ol those Charged wilh governance". Reviewing f5nanoial statement disclosures and testing to supporting documentation lo assess compliance with applicable laws and regulations. Because of the inherent limrtalion5 of an audit, there is a risk that we will not detect all irregularitiés, including those leading to a material misstatement in the Finan¢ial Stalemenls or non-cr>mpliance with regulation. This risk increases the More that compliance with 3 law or regulation is removed from the events and transactions reflected In the Financial Slalemenls, as we will be less likely to become aware ol instarlces of non-complian. The i-isk is also greater regarding iriegularilies occurring due to fraud rather Ih8n error, as fraud involves intentional concealtnent, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for IhÉ audit of the Financial Statements is located on the Financial Reporiing Council's website at.. www.frc.or .uklauditorsres Auditors. Report. onsibilitiès. This description forws part of our P8ge 13
FARMLAND RESERVE UK LIMITED INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF FARMLAND RESERVE UK LIMITED ICONTINUEDI Use of our report This report is made 501ely lo the cl)aritable company's fflembers. as a body, in accord2nce with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we rnght stale lo the charilable company's members those matters we are required to stale lo them in ari Audilois, Report and lor no other purpose. To the lullesl extent permilled by law, we do nol accept or assume responsibility lo anyone other than the ¢haiitable company and its members, as a body. for our audit work. for this report, or for the opinions we have formed, Rebecca Hughe. Bsc IHonsl FCCA (Senior Ststutory Auditor) lor and on behalf of MHA Chartered Accounlanls Statutory Auditors Northampton, United Kingdom Date.. 29 September 2023 MHA is the Iiading name of Maclntyre Hudson LLP, a limitèd liability partnership in England and Wales Iregislered nuniber OC3123131 Page 14
FARMLAND RESERVE UK LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestricted funds 2022 £ooD Total funds 2022 £000 Total funds 2021 £000 Note Income from.. Oonations 108,450 108,450 Other trading aelivilies-. Income from trading subsidiaries Inve51menls Other incorne 8.418 41 8,418 41 7,233 587 587 211 Totsl Income 117.496 117,496 7,446 Expenditure on.. Raising funds.. Trading activities Other Charilable donation Raising funds 5,733 618 130 5.733 618 4,632 559 2,007 12 130 Total expenditure 6,481 6,481 7.210 Net income before taxation Taxation 111,015 13491 111,015 13481 236 {4331 12 Net movement In funds 110,666 110,666 11971 Reconciliatron of funds.. Total fullds brought forward Nel movement in funds 104,262 110,666 104,262 110,666 104,459 11971 Total fund5 carried foN4ard 214,928 214,928 104.262 The Consolidated Statement of Financi31 Activities includ8s all gains and losses legnised in the year. The notes on p2ges 21 10 48 form part of these financial statements. P8ge 15
FARMLAND RESERVE UK LIMITED REGISTERED NUMBER.. 01332670 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022 2022 £Doo 2021 £000 Note Fixed assets Inlangible assets TangibSe assets 204 14 183,953 70,256 184,157 70,256 Current assets Stocks Debtor5 Cash al bank 2nd in liand 10,144 24,848 17,077 7.265 3.192 25.312 25 52,069 35.769 Creditors. amounts falling due within one year 19 120,3761 {1,1591 Nel current assets 31,693 34,610 Totsl assets less currènt Ilabilitles 215,850 104,866 Provisions foi Ilabilities 19231 16041 Total net assets 214.927 104.262 Charity funds Unrestricted funds. Share capital Unrestricted funds 21 10,000 204,927 10,000 94,262 21 Total unreslricled funds 21 214,927 104,262 Totsl funds 214.927 104,262 The Trustees acknowledge tlieir iesp0115ibililies lor ¢on)pl5qng with the requiienienls of the Aci with respecl lo accounting records and preparation of Financial Slalements. Page 18
FARMLAND RESERVE UK LIMITED REGISTERED NUMBER.- 01332670 CONSOLIDATED BALANCE SHEET ICONTINUEDI AS AT 31 DECEMBER 2022 The Financial Statements were approved and authorised for issue by the Truslees and signed on their behalf by B M Conway Trustee Dale". The notes on pages 21 to 48 form part ol these Financial Statements. Page17
FARMLAND RESERVE UK LIMITED REGISTERED NUMBER.. Q1332670 CHARITY BALANCE SHEET AS AT 31 DECEMBER 2022 2022 £000 2021 £000 Note Fixed assets Tangible assets Investments Investment property 14 2,600 9,450 249,16S 623 9,450 133.746 16 261.21 S 143.819 Current assets Debtors Cash at b8nk and in hand 18 24,449 6,902 5,125 8,342 25 31,351 13.467 Creditors." amounts falling due within one year 19 119,4811 14341 Net current assets 11,870 13.033 Total assets less curr*nt liabilities 273,085 156,852 Total net assets 273,08S 156,852 Charity funds Unrestricted funds Share capiial UnrestriGted income funds Revaluation reserves 21 10,000 189.739 73,346 10,000 80,412 66,440 21 21 Total unrestricted funds 21 273,085 163,756 Total funds 273,085 163,756 The Trustees acknowledge Iheir responsibilitie% for complsfjno with the reqiiiremenl.4 of the A¢t with respect to sccounting records and preparation ol Financial Slatetllenls. Page 18
FARMLAND RESERVE UK LIMITED REGISTERED NUMBER.. 01332670 CHARITY BALANCE SHEET ICONTINUEDI AS AT 31 DECEMBER 2022 The Finanaal Statements were approvèd and aulhorised for issue by the Trustees and signed on their behalf by". B M Conway Trustee Date". ILI 9113 The notes on pages 2110 48 forrn part of these Finanaal Slalemenls. Page 19
FARMLAND RESERVE UK LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 £000 2021 £000 Note Cash flows from operating actrvities Net cash used in operating activities 24 1Q6,568 16921 Cash flows from investing activities PrOe$ from the sale of tangible fixed assets Puicha5è of inlangible assets Purchase of tangible fixed assets Interest received 765 300 13 14 14071 1115,2021 41 19161 Net cash usèd in investing activities 1114,8031 16141 Changa in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 18,2351 25,312 11,3Q61 26,618 Cash and cash equivalents at the end of the year 25 17,077 25,312 The notes on pages 21 to 48 form part ol these rDanIal statements Page 20
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Company information Farmland Reserve UK Limited is a charitable ¢ompany limited by shares, incorporated in England and Wales in the United Kingdom, and the address ol ils registered office is Manor Fatrr, Church End, Wood Walton. HLJntingdon, Cambridgeshire, PE28 5YU. Accounting policles 2.1 Basi5 of preparation of Financial Statements Farrnland Reserve UK Limiled is an incorporated Charrty registered with the Charity Commission for England and Wales registration nurrber 274605. The Company is registered in the UK, registratian numbei 01332670. The Finanaal Slalements have been prepared in accordance wilh the Charrties SORP IFRS 1021 Accounting and Reporting by Charities.. Slalement of Recomtnended PractiTr applicable lo charities pieparing Iheir accounts in accordance with the Finanaal Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021, the Financial Rèportino Standard applicable in Ihe UK and Republic of Iieland IFRS 1021 and the Companies Act 2006. Farmland Reserve UK Limited meets the definrtion of a public benefit entity under FRS 102. Assets and liabilities are Initially recognised al historical cost or transaction value unless otherwise staled in the relevant accounting policy. The Consolidated Slalement of Financlal Activities ISOFAI and Consolidated Ba13nce Sheet consolidate the Financial Slalements of the Company 2nd ils subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Charity has taken advantage ol Ihe exemption allowed under section 408 of the Companies Act 2006 and has not presenled its own Statement of Financial Activities in these Finanoial Statements. The Chariljls functional and presenlalional currèncy is British Pound Sleilino {£) and is rounded lo thè nearest £1,000. The following principal accounting policies have been applied. 2.2 Going ¢oncem The financial slalements have been prep8red on a going concern basis as the Trustees believe that no rnalerial uncertainties exist. The Trustees h3v8 consifjered the level of funds held and the expected level ol income and expenditure for 12 rnonths from aulhorising these financial slaleinenls. The budgeted income and expenditiire is sufficient with the level of reserves lor the Group lo be able to continue as 8 going concern. P2ge 21
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accountii)g policies Icontinuedl 2.3 Income All Incorne is recognised onee the Charity has entitlement to the incom@, Il is probable thal the income will be received and the amount of income ieceivable can be measured re113bly. Donations are included in the Consolidaleé Slalement of Finan¢ial Activities on a receivable basis. The balance of income received for specific purposes bul not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entillEment ol ieceipl, ils recognition is deferred and included in credilor5 as dèferred income. Where entitlement occurs before income is rèceived, the income Is accrued. Rental illcome is recognised on a siraighl line basis over the period of the lease. Income from subsidiaries represents revenue reeognised in respeGt of goods 8nd services. Revenue is recognised lo the extenl that il is probable Ihat the economic benefits will flow lo the Charity and the reveriue can b8 reliably measuied. Revenue is rneasured as the fair value of the consideration received or receivable. excluding discounts, rebates, value added lax and other sales taxes. Revenue from crop sales is recognised upon receipt of the goods by the customers. Whilst goods are In transil, the risk 8nd reward of ownership remain with the Ch3ri1y. Single farm payments are ieceivable on an annual basis. The annual payment is re¢ognised in the year that the application applies lo Due to the iegular v8rialion in when the payment owurs, this is recoonised eilhei by acuual or upoii receipt of payment. 2.4 Expenditure Expendilure is recognised once there is a legal or conslruclive obligation lo make a paymenl lo a third party, it is probable that settlement will be required and the amount of the obligslion can be measured reliatrjly. Expendiluie is dassified under the following activity headngS.. Costs of raising funds-. trading activities Gomprise the expensés of Ihe trading subsidiary in undertaking its income generating activities. other expenditure represents the expenses of parent company in ienling the tangible fixed assets. These expenses are not considered to be directly atlribu13ble lo either costs ol raising funds or charitable expenditure lo further the Charity's aims. Where costs nn01 be ieliably attributed lo particular activities Iliey have been alloted on a basis consislenl with the use of Ihe resources. Direol Charitable expenditure cotnpiises expenditure direct re121ing 10 the objects of the Charity. Govemance costs incorporate those costs of governance arrangemen15 which relatè lo the general running of the Charity as opposed to the direct managemenl functions. Tlie costs relating to these aclivilies provide the governan inlraslruclure which allaws the Charity to operale and to generate the information required for public accountability. An analysis of these costs is disclosed in note 8. Support costs are those fundions that assist the work of the Charity but do not dire¢lly undertake oharilable activities. Support costs include finance, professional and governance cosls which 5UPPOrt the Charills aclivilies. As there is onw one activity in the Gharity. the support costs have been allocated there in full. Page 22
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies l¢ontinuedl 2.4 Expenditure Icontinuedl Expenditure on charitable activities is incurred on directly undertaking the aCtItieS which further the Group's objectives, as well as any assoaaled support costs. 2.5 Interest ceIvable Intest on funds held on deposit is included when receivable and the arnounl can be measured reliably by the Group. this Is normally upon notification of the interesl paid or payable by the inslilulion with whom the funds are deposited. 2.6 Taxation The Charity is considered lo pzss the lesls sel oul in Paragraph 1 Schedule 6 of the Finance Ael 2010 and therefore it meets the definition ol a charitable company for UK corporation lax purposes. Accordingly, the Charity is polent1211y &xÈrnpt from taxation in respect of income or capital gains received wilhin ¢alegories covered by Chapter 3 Part 11 of the Corporation Tax Act 201 D or Section 256 of the Taxation of Chargeable Gains Acl 1992. to the extent that such income or gains are applied exclusively to charitable purposes. Tax is payable on profits in the subsidiary corrpany. 2.7 Intanglble assets and amortisation Inl8noible fixed assets represent purchased entitlements to rèceive the single farm payment subsidy. These are held at cost and amortised over their expected useful life. The amortisation charge is included within expenditure on raising lund5.' trading a¢tivilies line in the SOFA. Amortisation is provided on intangible fixed assets at rates calculaled to wiite off the cosl of each asset. less their estimated iesidual value, over their expected useful lives on the following bases.. Single fami payment enlitlemerTrls Straight line over two years 2.8 Tangible fixed assets and depre¢iation Tangible fixed as5els costing £10,000 or more are capitalised and iecognised when future economic benefits èle prob8ble and the cost or v8lue of the asset can be measured reliably. Page 23
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Icontinuedl 2.8 Tangible fixed assets and depreciatlon Icontinuedl A review for Impairment of z fixed asset is C8rried out if events or changes In circumstances indicate that the carrwng value of any fixed asset may not be iecoverable. Shortfalls between Ihe carrying value of fixed assets and their recover8ble amounls ale recognised as impairments. Impairrnent losses are recognised in the Statement ol Financial Activities. TarTrgible fixed assets are initially recognised al cost. After iecognilion. under the cost model, tangible fixed a55ets ale measured al cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into ils Inlended working condition should be included in the measurernenl ol cosl. Oepreuation is charged so as to allocate the cost of tsngible fixÉd assets less their residual value over their eslirmatèd useful lives, using the straight4ine method. Deprecialion is provided on the fdlowing bases.. Freehold land not clepre¢ialed Land improvemellls over 10 10 40 yè8rs Asgels under construction not depreciated until bought into use Plant and machinery over 5 to 10 years Equipment fixtures and fittings over 5 10 10 years Farm houses and farm buildings- over 25 10 40 year5 Galns and losses on disposals are detertnined by comparing tlie proceeds with the caitwng amount and are recognised In Ihe Consolidated Statement of Financial Activities. 2.9 Investment Proporty The treehold land, farm houses and farm buildings owned by The Cliarily are iecognised as investment properties in The Charitls own Balance Sheet. and revalued to lair value al each balallce sheel dale. The valuation is based on management's assessment of the mArket value of land and buildings held as invÈstment property at the year Énd. 11 takes into collsideration mark8t reports and their knowledge of the pioperty and the local markel. The property is carried al depreuated cost in the Group accounts. Investment property held by the Charity is measured initially at cost and subsequently at fair value al each reporting date, with the gain or loss on revaluation going to the charitable company's nel surplus for the year. The land and buildings rented io Group cornpanies are held as Iiiveslment property wilhin the Financial $131etnenls of the Charity but remain a5 tangible fixed assets in Ihe Group consolidated Financial Slalemenls at depreciated cost. 2.10 Investments Fixed asset inveslmenls in lisled securities are held at fair value and revalued annually with any g31ns or loss going to the Consolidated Slalement of Financial AGlivities. Fixed asset investments are a form of finanaal instrument and are initially recognised al Iheii transa¢lion oosl and subsequently me8sured at fair value al the balance sheet dale, unless the value cannot be measured reliably In which case il is measured at cost les5 impairment. Inveslwent gains and losses. whether realised or LSnrealised, are combined and presented as 'GainsllLossesl on invèstments, in the Consolidated Statement of Finanal Activities. Investments in SLJbsidiaries are valued al cost less prowsion lor impairment. Page 24
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policiès Icontinuedl 2.11 Stocks Agriculture produce is held under cost model, being slated at the lowei of cost and eslimaled selling price less costs lo complete and sell. Cost Is based on an allocation ol costs. Cultivations and crop in store include labour and attributable overheads. Cultivations cost is determined on an overhe8d allocation basis. Cultivalions are in the earfy stages of growth at the year end and therefore their market value cannot be determined. Crop in store are valuéd al the lower of cost and net realisable valLJÈ. With reference to tnarket value and contracted future sales. At each reporting d2te. stocks are assessed for Impaitmenl. If stock is impaired, the carryryng amount Is reduced to ils selling price less costs ta complete 2nd sell. The impairment loss is re¢ognised in profit and loss. 2.12 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.13 Cash at bank and sn hand Cash 31 bank and in hand includes cash and short-temi highly liquid investments with a short maturity of three months or less Iiom the date ol acquisition or opening of the deposit or similar account. 2.14 Liabilities and provisioiis Liabilities are recognised when there is an obligation al the Balance sheet date as a result of a past event, it is probable that a Iiansfer ol economic benefil will be required in settlement, the amount of the settlement can be estimated reliably. Liabilities are recognised al the amount that the Company anticipates il will pay to settle the debt or the amount it has received as advanced paymei)ts for the goods or seNices il must prowde. Provisions are measured al the best estimate of the amounts required to settle the obligation. Where the effect of the lime v21ue of rnoiiey is materi81, thè piovision is based on the present value of those amounts. discounted al the pre-tax discount rale that reflects the risks specifi¢ lo the liability. The un1ndIng of the discount is recognised within interesl payable 8nd similar charges. 2.15 Deferred taxation Full provision is made for deferred l£x assets and liabilities arising frorn all liming difference5 computation. A net deferred tax asset is recognised only if il can be regarded as more likèly than not that there will be suitable taxable surpluses from which the future reveisal of the underlying liming differences can be deducted. Deferred lax assets and liabilitiés are calculated at the lax rates expected to be effective at the lime the timing differen5 are expected to reverse. Deferred tax assets and liabilities are not d5scounted. Page 25
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting pollcies Icontinuedl 2.16 Financial instruments The Group also enler5 into basic financial instrument5 transactions that result in the retognition of rinaiicial assets and liabililies like trade and other debtors and creditors, loans from banks and olher third parties. loans lo related parties and investments in norFpultable ordinary shares. Financial assets that are measured at cost and amortised cost are assessed al the end of each reporting period lor objective evidence of impairment. If objective evidence of iinpairmenl is found, an Impairment Ioss Is recognised in the Slalernent ol Comprehensive Income. For financial assets measured al ainortised cost, Ihe Impairment loss is measured as the difference between an asset's carrying amount and the present value of estim8ted cash flows discounted at the asset's original effective interest rate. If a fin8n¢ial asset has a variable intèiest rate, the discount rale for measuring any impairment loss is the current effective interest rate determined under the conlr3cI. For financial assets measured at cost less impairment, the impaimient loss is measured as the difference between an asset's carrying amount and best estimate of the iecoverable atnounl. which Is an approximation of the amouni that the Group would ieceive lor the asset if il were to be sold al the balance sheet date. Financial assets and liabilities are ollsel and the nel amount reported in the Balance Sheet when there is an enforceable righl to set off the iecognised amounts and there is an intention lo settle on a net basis or lo realise the asset and settle the liability simLJllaneously. 2.17 Operating leases Rèntals paid under operating leases are charged lo the Consolidated Staternenl of Financial Activities on a straighl line basis over the lease lertm. 2.18 Operating leases lessor Reni81 income is recognised on a straight line basis over the period of the le3se, unless Ihe rental payimenls are structured to increase in line wilh expected Inflation, in which case the annual rental income equals the aniounts owed lo the lessor. The aggregate benefit of lease incentives are recognised as a reduction to the income recognised over the lease term on 2 slraight line basis. Page 26
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Icontinuedl 2.19 Pensions The Group is part of a defined benefit pension scheme operated by The Church of Jesus Christ ol Lalter-day Saints (Great Brilainl, the Deserel UK Senefit Plan. The fund is valued every three years by a professionally qualified independent actuary, with rate5 of contributions payable being determined by Ihe actuary. In inleNening years the actuary reviews the continuing appropri8leness ol the rates. Pension costs are accounted for on Ihe basis of contributions made in the year or accrued at the yeai end. on a defined contribution basis, as requested by FRS 102 as Ihe Charity is unable lo identify its share of the underlying assets and liabilities of the scheme. Full details of the plan are provided in the financial slalemenls of Thè ChurGh of Jesus Christ of Latter-day Saints (Great The Group is not liable to the plan for other entities obligaliolls under the lems and conditions ol the multi employer pension plan. The Group also operates a defined contribution pellsion plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a sep2rale entity. Once the ¢onlributions have been paid the Group has no further payment obligations. The conliibulions are cogniSed as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a li2bilily in the Balan sheet. The assets of the plan are held separately from thè Group in independently adrninistered funds. 2.20 Fund accounting General funds are unrestrioted funds which ale avail8ble for use at the discretion ol the Trustees in furiherance of the geiieral objectivès of Ilie Group and wliich have nol been designaled for othei putpose5. Designated funds comprise unrestricted funds that have been sel aside by the Trustees for particulai purposes. The airn and use of each designated fund is set out in the noles to Ihe Financial Statements. Reslricled funds are funds which are lo be used in accordance with specthc restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs ol raising and administering su¢h funds are chaiged against the specific fund. The airn and use of ea¢h restricted fund is set out in the notes to the Financial Statements. Investment income, gains and losses are allocated to the appropriate fund. Page 27
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Icontinuedl 2.21 Critical accounting estimates and areas of judgment The following judgements lapart Irorn those involving estimates) have been made in the process of applying the above accounling polioies that have had the mosl signifirnnt effect on amounts recognised in Ihe financial statements.. Investment property The investment property in the Charity Is valued by the trustees al the balance sheet dalè. The Trustees consider the valuatN to be appropriate having iegard lo the local market conditions. Trade debtors Trade debtors consist ol amounts due from customers. An 311owance for doubllul debts is maintained for estimated losses resulting from the Inability ol The Group's Customers to make required payments. The 8llowanee is based on the companls regular assessment of the credit worthinèss and finanaal condilions ol thè customer. Stock Slock is valued at the lower of cost and net reali58ble v8lLJe. Cost is determined on an overhead allocation basis. Net realisable value is dètermined by managèment with rel8rence to market value, consideration of contracted fulure sales. Certain laclors could affect Ihe net realisable value ol The Group's stocks. induding customer demand and market conditions. Tangible and intsngible assets Depreciation and amortisalion are provided on fixed assets based on the estimated useful economic life of Ihose assets. This Is based on managernenl's knowledge ol the business, assets ar)d prior experieflce. There are no key assumptions conceming the future. and other key sources of estimalioll uncertainly at the reporting date, that have a significant risk of causing a material 8djustmenl lo the carrying amounts of assets and liabilities within the next financial year. Income from donations Unrestricted funds 2022 £000 Total funds 2022 £000 Total funds 2021 £000 Donalions 108,450 108.450 Page 28
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR FNDED 31 DECEM8ER 2022 Income from other trading activities Income from non charitablè trading a¢tivities Unrestricted funds 2022 £000 Totsl funds 2022 £000 Total funds 2021 £000 Trading subsidiary 8,418 8,418 7,233 Ill 2021, income from the trading subsidiary was unreslricled income. Invèstment income Unrestricted funds 2022 £000 Totsl funds 2022 £000 Total funds 2021 £000 Interest receivable Irorn interest bearing accounts 41 41 Other incoming resour¢e$ Unrestrlctèd funds 2022 £000 Total funds 2022 £000 Total funds 2021 £000 Other incoming resources Profil on disposal ol tangible fixed assets 115 472 115 472 211 587 587 211 Page 29
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Analysis of expenditure on charitable activities Summary by fund type Unrestricted funds 2022 £000 Total 2022 £000 Total 2021 £000 Operating costs ol parent Company Trading of subsidiary Charitable don¥lion 618 618 571 4.632 2.007 5,733 130 5.733 130 6,481 6,481 7.210 Summary by expenditure type Stsff costs Depreciation Other costs 2022 2022 2022 £000 £000 £000 Total 2022 £000 Total 2021 £000 Operating costs ol parent company Trading ol subsidiary Charitable donation 547 664 71 3,524 130 618 5,733 130 571 4.632 2.007 1,545 Total 2022 1,545 1,211 3.725 6,481 7.210 Total 2021 1,089 1,087 5,034 7,210 Page 30
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Analysis of expanditure by activities A¢tivities undertaken directly 2022 £000 Support costs 2022 £000 Total funds 2022 £000 Total funds 2021 £000 Operating costs of parent company Trading of Subsidiary Charitable donation 576 42 618 571 5.718 130 5,733 130 4.632 2,007 Totsl 2022 6,424 57 6,481 7,210 Total 2021 7,145 65 7,210 Analysis of direct costs Operatlng costs of Trading of Charitahle parent subsidiary donation 2022 2022 2022 £000 £000 £000 Total funds 2022 £000 Total funds 2021 £000 Staff costs Depreaalion Charitable donation Trading activities Donations and other 1,545 664 1,545 1,211 130 3,538 1,089 1,085 2,007 2,913 51 547 130 29 3,509 Totsl 2022 576 5,718 130 6,424 7,145 Total 2021 519 4,619 2.007 7.145 Page 31
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2Q22 Analysis of expenditure by activities Icontinuedl Analysis of support costs Operating osts of Trading of parent subsidiary 2022 2022 £000 £000 Total ftsnds 2022 £000 Total funds 2021 £000 Audit of Subsidiary Legal Audit ol Paienl 15 15 31 31 11 Totsl 2022 42 15 57 65 Total 2021 52 65 During the year ended 31 Dember 2022, the cotnpany incurred Ihe 1015owing Governance costs.. The Charity only auditor remuneration - £11 k12021'. £8kl Subsidiary ¢ompany auditor reinuneralion £15k12021.' £13kl Net lincomellexpenditure This is slated after ohargingllcreditingl.. 2022 £000 2021 £000 Depreciation of tangible fixed assets owned by the charitable Group Amortisalion ol intangible assets Auditor's remuneration - audit Auditoi's remuneration - other financial servicès Operating lease renlals Profit on disposal of fixed assets Pei)sioii cost 1.2q1 204 1.084 26 25 20 14721 277 260 Paoe 32
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 o. staff costs Group 2022 £000 Group 2021 £000 Wages and salaries Social security cost5 Other pension costs 1,147 21 751 78 277 280 1,545 1,089 The average number of persons employed by the Charity during the year was as follows.. Group 2022 No. Group 2021 No. Production and 8drninislr2tion 19 17 The average headcount expressed as full-time equivalents was.. Group 2022 No. Group 2021 No. Production and administration 17 Thè number of employees whose employee benefits (excluding employer pension costs) exceeded £60.000 was.. Group 2022 Group 2021 No. In the band £60,001 £70,000 In the band £90,001 £100,000 In the band £100.001 £110,0(K) In the b3nd £110.001 £120,0 Page 33
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Trustees. remuneration and expenses One trustee who is also a direcloi ol the subsidi3ry company, received iernuner81ion from the subsidiary company in relation to services provided as 2 director ol the subsidiary company. No other Trustèès received remuneration 01 pension contributions. The remuiieralion paid is oullined below.. 2022 £000 2021 £000 8 M Conway Rernuneralion Company pension contributions lo defined conlribulion pension schèmes 117 99 36 33 Payment is made to the Tiuslee as agreed with the Charity Comrnis510n. During the year ended 31 December 2022. no Trustee expens8s have been incurred 12021 £NILI. Other relatèd party Iransacknon5 involving the Trustees are sel out in note 34. Pag8 34
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 12. Taxation 2022 £000 2021 £000 Corporation tsx Tax cliarge 29 324 Total cUrnt tax 29 324 Deferred tsx Origination and reversal ol timing differen¢es 320 109 Totsl deferrèd tsx 320 109 Taxation on net income 349 433 The lax assessed for the year is highei than12021 higher Ihanl the standard rate of corporation lax in the UK of 19'A12021 19%). The differences are explained below.. 2022 £000 2021 £000 Surplus on ordin8ry actiMties before lax- AgReserves Limited 1686 1.591 Effects of.. Surplu5 oll ordinary activities multiplied by the Standard rale of cc>rporalion tax in the UK of 19Q/o12021-19°kl Olher timing differenees and disallowed expenditure Origination and reversal of timiiiu differences 320 12911 320 303 21 109 Total tax charge for the year 349 433 There are no factors conside likely to affect future tax charges. Page 35
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 13. Intangible assets Group Single farm payment entitlements £000 Cost At 1 January 2022 Additions 435 407 At 31 DeceTMber 2022 843 Amortisatio At l January 2022 Charge for the ye8r 435 204 At 31 December 2022 639 Net book value Al 31 December 2022 2Q4 Al 31 December 2021 Page 36
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 14. Tangible fixed assets Group Land Improv. Farm Equipment Assets in houses & and the course Farm Plant and fixtures of buildiiigs machinery and fittings construction £000 £000 £000 £000 Freèhold land £000 Total £000 Cost or valuation Al 1 January 2022 Additions Disposa15 Transfers between classes 53.874 101,226 17,333 7,480 5,284 4,147 19281 1,057 584 78,132 115,202 19441 2,349 1161 325 169 14941 Al 31 December 2022 155,lOQ 25.138 8,503 1,226 2,423 192.390 Depreciation At 1 January 2022 Charge for the year On disposals 4,654 507 2.958 664 263 40 7,875 1,211 16511 16511 Al 31 December 2022 5,161 2,971 303 8,435 Net book value Al 31 December 2022 155,100 19,977 5,532 923 2.423 183,955 At 31 December 2021 53,874 12,678 2,328 794 584 70,256 Page 37
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 14. Tangible fixed assets Icontlnuedl Charily Farm Assets in houses & Equipment the course Farm fixturès and of buildings fitting5 construction £000 £000 £000 Total £000 Gost or valuation At 1 January 2022 Additions Disposa15 Transfers between classes 47 584 2,349 742 100 2.449 44 14941 14501 At 31 Deceniber 2022 211 91 2,423 2,725 Depreciation At 1 January 2022 Charge for the year 76 43 119 At 31 December 2022 79 46 125 Net book value Al 31 Deceinber 2022 132 45 2,423 2,60Q At 31 December 2021 35 584 623 Page 38
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 15. Investment property Charrty Freehold investment propety £000 Valuation At 1 January 2022 Addition5 Surplus on revaluation 133,746 109,054 6,365 Al 31 December 2022 249,165 The fair value of investment propèrty 15 based on a valualion by the Trustees, determined with reference Éo market reports and management's knowledge of the property and Ilie local market. The investment property is held by the Parent Charity and used only by the subsidiary Company, AgReserves Limited. It is carried at fair value in the Parent Company Financial Slatements and 81 depreciated cost in the Group a¢¢ounts, Thè hislorical cost of thè investment propety is £174,828k12021.' £68,574kl. Pa9e 39
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEM8ER 2022 16. Fixed asset investments Investments subsidiary companies Charity £000 Cost or valuation Al 1 January 2022 9,450 At 31 Decernber 2022 9,450 Net book value At 31 December 2022 9,450 At 31 December 2021 9,450 Principal subsidiaries The following was a subsidiary undertaking of the Charity". Name Ctsmpany number Class of shares Holding AgReserves Limited 02947030 Ordinary 100°/, The financial resulls of the subsidiary for the year wer8". Name Income £000 Expendlture £000 Profit for the year £000 Net assets £000 AgReserves Limited 8,609 7.421 1,337 24,637 Page 40
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 17. Stooks Group 2022 £000 6,174 3,970 Group 2021 £000 3,089 4,176 Cultivations Crops 10,144 7,265 An impaimenl loss of £144,338 12021.. £189,897) was recognised in cost of sales against Stock during the year. 18. Debtors Group 2022 £000 Group 2021 £000 Charity 2022 £000 Charity 2021 £000 Due within one year Tr3de debtors Amounts owed by Group undertakings Other debtors Prepaymellls and accrued income Tax recoverable 4,268 3,076 31 4,453 19,923 42 5.125 20,085 85 410 116 24,848 3.192 24,449 5,125 Amounts owed by Group undertakings ale interest free and iep3yable on demand. Page 41
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEhlIBER 2022 19. Cr8ditors'. Amounts falllng due within one year Group 2022 £000 Group 2021 £000 Charity 2022 £000 Charity 2021 £000 Trade creditors Amounts owed to Group undertakings Amounts owed to pBrticipaling interests Corpoialion tax Other lax31ion and social security Other creditors Accruals and deferred income 299 176 122 229 19,000 95 209 19,000 210 92 457 122 142 59 257 843 130 20,376 1.159 19,481 434 Amounts owed by Group undertakings ale unsecured. interest free and repayable on demand. 20. Deferred taxation Group and Charity 2022 £000 2021 £000 At the beginning of the year Charge foi the year ISOFAI 604 518 86 319 923 604 The deferred lax liability is made up as follows-. Group 2022 £000 Group 2021 £000 Acceleraled capital allowances Tax losses carried lofward Other short term differences 878 45 557 47 923 604 Page 42
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21. Slalement of funds Statement of funds current year Balance at 31 Dècember 2Q22 £000 Balance at I January 2022 £000 Income Expenditure £000 £000 Taxation £000 Unrestricted funds Share capital Reserves 10,000 94,262 10,000 204,927 117,495 16,48ql 13491 104,262 117.495 16.4811 13491 214,927 Unrestricted funds Charitable funds are unrestricted funds which are available for use at the discretion of the Trustèes in furtheiance of the general objectives Of the charitable company ar)d which have not been designated lor other purposes. The Charity has taken advantage ol the exèmplioll contained within section 408 of the Companies Act 2006 not to present its own Statement of Financial Activities. The nel income lor the year dÈah with in the accounts of the parenl chaiitable company was £116.2m 12021.. £1.2ml. Page 43
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21. ststement of funds lcontinuèdl Statement of funds - prior year Balan al 31 Decembei 2021 £000 Balance at 1 January 2021 £000 Incotne Expenditure £000 £000 Taxation £000 Unrestricted funds Share eapilal Rèserves 10,Oc) 94,459 10,000 94,262 7,446 17,2101 14331 104,459 7.446 17,2101 14331 104,262 22. Summary offunds Summary of funds - current year Balance at 31 December 2022 £000 Balance at 1 Jaiiuary 2022 £000 Incorne Expenditure £DOO £000 Taxation £000 General funds 104,262 117.495 16,4811 13491 214,927 Summary of fvnd5 - prior year Balance at 31 Deceinber 2021 £000 Balance al 1 January 2021 £000 Income Expènditure £000 £000 Taxation £000 General funds 101,45g 7,446 (7,2101 14331 104,262 Page 44
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEM8ER 2022 23. Analysis of net assets beeen funds Analysis of net assets between funds - current year Unrestricted funds 2022 £000 Total funds 2022 £000 TangibSe fixed assets Intangiblè fixed assets Current 3ssels Creditors due within one yèar Deferred lax 183,953 204 183,953 204 52,069 120,3761 19231 52,069 120.3761 19231 Total 214,927 214.927 Analysis of nel assets bètween fvnds - prior year Unrestricted funds 2021 £000 Tot81 funds 2021 £000 Tangible fixed 8ssels Current assets Greditors due within one year Deferred tax 70,256 35,769 11,1591 16041 70,256 35,769 11,1591 16041 Total 104,262 104,262 Page 45
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 24. Reconciliation of nèt movement in funds to net ¢ash flow from operating activlties Group 2022 £000 Group 2021 £000 Net inwmellexpendilurel lor the year las per Statement ol Financial Activiliesl 110,666 11971 Adjustments for.. Depreciation charges INole 141 Amortisalion ol inlanoible assets INole 131 Increase in stocks (Note 171 Increase in debtors (Note 181 Increase in creditors INole 191 Inleresl re¢£ived (Note 51 Profit on disposal of Irxed assets INole 91 Taxation (Note 121 Income taxes paid 1,211 204 1.084 26 12,8791 121,4941 19,425 1411 14721 349 16281 11,2671 147 {21 433 14011 17n Nèt cash providèd byllused inl operating activitÉes 106,568 16921 25. Aiialysis of cash and cash equivalents Group 2022 £000 Group 2021 £000 Cash in hand 17,077 25,312 Total cash and ¢a$h equivalents 17,077 25,312 26. Analysis of changes in net debt At1 January 2022 Cash flows £000 At31 December 2022 £000 £000 25,312 Cash at bank and in hand 18,2351 17,077 Page 46
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 27. Share capital Allolled, called up and fully paid 10.000,000 Ordinary shares of £1 each. Pension Commitments 28. The Group participates in a pension scheme operated by The Church of Jesus Christ of L311er-day Saints IGreat Brilainl, the Deseret UK Benefit Plans I'the Plan l. The scheme is of the defined benefit type and 15 funded by contribLJlions from the participating Gomp2nies and their employees at rates determined by independent actuaries in the light of regular valuations. Such contributions are held in Irusle adrninislered funds completely independent ol group finances. Full disclosure of the valuation is shown in the accounts ol The Church of Jésus Christ of Lalter-day Saints (Great 8rilainl. The group has accounted lor the scheme as if il was a defined contribution scheme because il Is not feasible to split the 25sels and liabilities of the scheme between all the companies whose employees are members. The Group also operates a defined conlribulion pension plan lor its etnployees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. Conliibutions to the two schemes for the year were £277k {2021.' £260kl. Contributions totalling £nil 12021.. £8.6kl were outstanLling al the year end and this balance is included within other creditors. 29. Operating lease ¢ommltrnents At 31 December 2022 the Group and the Charity had commilrnenls lo make future minimum lease paywenls undèr non-cancèllable operating leases as follow5.. Group 2022 £000 Group 2021 £000 Within 1 year Page 47
FARMLAND RESERVE UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 30. Finat)cial risk management The risks arising from finanaal instruments lo which the entity Is exposed al the year end are as follows Credit risk In view of the recent economic dowllluin the Charity is making every effort lo minimise exposuie lo CU51omer credit risks and 3118ppropriate steps are taken lo reduce this risk. Price risk As part of the nature of agriculture the Charity is subject to price variations, but active efforts are made lo manage Ihis risk by laking advantage of regular maikel inlormalion, forward conlracts, and owning sufficient Storage. These storage facilities allow the Charity lo price and deliver products away from the harvest window which is well known lo be a period of depressed prices. Market risk The year end valuation, and resulting gain or loss in the Statement of Financial Activities, of finanrial instruments measured at fair value through in¢ome and expendilure, is subject to changes in the market value of the listed investments in which shares are held. 31. Unrestricted incoma funds - Charity Thi5 resewe represents cumulative net income on unréstricled Income streams. Every year a transfer is made lo the revaluation reseNe, representing the value of gains and losses of the investment property. Nel incotne in the current year tolalled £116.2m12021'. £1.2ml and the reserve transfer lo Ihe revalu31ion reserve lolalled £6,906k12021'. £2,613kl representing the lair value gains on the Investment property. 32. Revaluation reserye - Charity The revaluation reserve represents cumulative gains and losses on the fair value movement of the inveslment properties since transition to FRS 102. In the current year fail value g2ins lota15ed £6,906k 12021.. £2.613kl and this represents the movement on the reseive in the year. 33. Turnover All lumover arose within Éhe United Kingdom. 34. Related party transactions The immediate and ultimate parent company of the Group is Farmland Reserve Inc, a not for profil comp8ny incorporated in the United Slates of America. This is the largest and sinallest group of undertakings for which group a¢¢ounts are di8wn up. The Charily is directed by Farmland Reserve Inc, through budgets and plans reviewed by the Charity Trustees. The Charity has taken advantage of disc105ure exemptions avai18ble within FRS 102 seclion 33 and nol included details of any transactions with wholly owned Group companies that are included in these onsolidaled accounts. Page 48