International Financial Reporting Standards Foundation


ANNUAL REPORT

For the year ended

31 December 2014


Management Commentary


Financial Highlights

The principal objective of the IFRS Foundation is to develop a single set of high quality, understandable, enforceable, and globally accepted financial reporting standards based upon clearly articulated principles. The IFRS Foundation’s standard-setting body, the International Accounting Standards Board (IASB), is responsible for developing and promoting the use and rigorous application of these Standards. The IASB currently consists of up to 16 members who are drawn from a variety of backgrounds, including users, preparers, standard setters and auditors. They are selected on the basis of their professional competence and practical experience. The IASB is supported in the standard-setting process by the technical staff of the IFRS Foundation. The operational staff are responsible for the oversight, administration, support and management of finances to carry out the objectives of the organisation.

2014 Financial Results

The Foundation’s financial statements are prepared in accordance with IFRS. Financial highlights of the accompanying financial statements are as follows:

Contributions

The IFRS Foundation is a not-for-profit organisation whose primary source of income comes from voluntary contributions from jurisdictions that have put in place national financing regimes. Funding mechanisms differ from jurisdiction to jurisdiction; however most jurisdictions have either established a levy on companies or provide an element of publicly supported financing to the IFRS Foundation. The continuing efforts of the Trustees are to secure funding that is: on a long-term basis (at least three to five years); publicly sponsored; flexible to permit the use of differing mechanisms and to adjust to budgetary needs; and shared among jurisdictions on the basis of an agreed formula (which would be consistent with the principle of proportionality). The Trustees recognise that individual jurisdictions will have different methodologies for providing the necessary financing.

In 2014 contributions were £22.6 million, an increase of 5.7 per cent from 2013. A list of contributors is presented in the following section of the report. Efforts have been made in 2014 to increase the number of contributing jurisdictions. It can take time to establish effective communication channels with new jurisdictions, but significant progress has been made and several new jurisdictions have indicated that they plan to start making contributions in 2015.

Publications and related activities

Revenue from publications and related activities amounted to 19.3 per cent of the Foundation’s total income. This income consists of the sale proceeds from publications, subscriptions to eIFRS (electronic and app-based products), commercial licences, copyright waivers for jurisdictions adopting IFRS and conference income. In 2014 total publications revenue decreased by 2.1 per cent to £5.5 million (2013: £5.6 million). The cost of publications and related expenses also decreased by 9.0 per cent to £3.1 million (2013: £3.4 million). The result was an increase in net income of £186,000 or 8.4 per cent.

The sales of publications and subscriptions remained basically unchanged, as set out in Note 6 of the financial statements. The issuance of new Standards in 2015 and beyond is expected to help sustain future sales. In addition, in October the Foundation completed a major programme of reforms that completely redesigned its suite of online IFRS resources, known as eIFRS. Licensing and waiver fees decreased by £161,000 or 7.5 per cent, which was primarily due to lower than expected returns on some commercial contracts. Additional commercial contracts are in negotiation for 2015. The Foundation continues to explore ways to increase self-generating income whilst fulfilling its public interest objectives.

Expenses

Total operating expenses were £24.5 million, a decrease of 2.8 per cent (2013: £25.2 million). The Foundation has maintained control over the size of the staff and the organisation as a whole, keeping operating expenses under 2013 levels. The main costs associated with developing IFRS are the salaries for technical and support staff; these costs remained basically unchanged, as set out in Note 1 of the financial statements. IFRS have achieved wide international acceptance and adoption; the G20 and other significant bodies support the IFRS Foundation’s mission. As a consequence, there is continuing stakeholder outreach, technical complexity and staff engagement. However, less associated international travel and meeting costs were required and so these expenses decreased by £245,000 or 23.3 per cent during 2014.

While the IASB has a published work programme, the issuing of final Standards will be affected by the quantity and diversity of comments and specific feedback received on Exposure Drafts and Discussion Papers. It is also possible that specific interest groups or jurisdictions may raise additional issues that require further time to investigate and resolve. The timing of final Standards is therefore not completely within the control of the IASB; this affects the costs of producing IFRS.

Reserves

As of 31 December 2014 the Foundation’s reserves were £16.9 million (2013: £13.2 million). This level of reserves is 69.1 per cent of 2014 operating expenses (2013: 52.4%), an increase of 16.6 per cent from 2013. The Foundation’s goal is to continue to maintain and build future operating reserves of cash and working capital. The operating reserve is an unrestricted fund balance set aside to stabilise the Foundation’s finances by providing a ‘cushion’ against unexpected events or losses of income. The Trustees have included within the Foundation’s 2015 Three-Year Plan a proposal to increase reserves to a level equivalent to one year’s operating expenditure. This is expected to take several years.

2015 Outlook

In 2015 the Foundation will continue to manage its operating expenditure prudently and effectively and will actively pursue further initiatives to enhance the organisation’s income. The 2015 Three- Year Plan does not envisage significant increases in the operating requirements of the organisation.

The IFRS Foundation and its financial statements


The International Financial Reporting Standards Foundation (the ‘Foundation’) is an independent, not-for-profit, public interest organisation incorporated in the State of Delaware, USA, on 6 February 2001. Its primary operations are based in London.

Its mission is to develop International Financial Reporting Standards (IFRS) that bring transparency, accountability and efficiency to financial markets around the world. The Foundation’s work serves the public interest by fostering trust, growth and long-term financial stability in the global economy.

IFRS are developed and issued by the International Accounting Standards Board (IASB), the standard-setting arm of the Foundation, working with related bodies that include the IFRS Interpretations Committee and the IFRS Advisory Council.

The governance and key management responsibilities of the Foundation rest primarily with its Trustees, who provide oversight. A Monitoring Board, consisting of capital market authorities with responsibilities for financial reporting, provides a formal public accountability link between the Trustees and public authorities. The Foundation’s governance and due process are designed to keep the Foundation’s standard-setting independent from special interests while ensuring accountability to its stakeholders around the world.

These financial statements cover the year ended 31 December 2014. They have been prepared in compliance with IFRS, including interpretations that were effective or applied early on 1 January 2014.

The financial statements were approved and authorised for issue by the Trustees of the Foundation on 16 April 2015 At that date there had been no events since 31 December 2014 that required disclosure in, or an adjustment to the financial statements.


Michel Prada

Chair of the Trustees

Independent auditor's report to the Trustees of the International Financial Reporting Standards Foundation


We have audited the accompanying financial statements on pages 51 to 61 of the International Financial Reporting Standards Foundation, which comprise the statement of financial position as at 31 December 2014, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year ended 31 December 2014, and a summary of significant accounting policies and other explanatory information.

This report is made solely to the Foundation’s Trustees, as a body, in accordance with Section 13 of the Foundation's Constitution. Our audit work has been undertaken so that we might state to the Foundation’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Foundation and the Foundation’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Trustees' responsibility for the financial statements

The Foundation's Trustees are responsible for the preparation of the financial statements that give a true and fair view in accordance with International Financial Reporting Standards, and for such internal controls as the Trustees determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to audit and express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require us to comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the Foundation as at 31 December 2014 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.


Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
United Kingdom
Date: 16 April 2015


Statement of comprehensive income


Year ended 31 December 2014

2014

2013

Note

£'000

£'000

Income

Contributions

5

22,591

21,372

Revenue from publications and related activities

6

5,502

5,621

Other income

5

347

374

28,440

27,367

Operating expenses

Technical and operational activities

- IASB member and staff costs

1

(16,767)

(16,735)

- Other technical and operating costs

1

(1,794)

(2,100)

- IFRS Advisory Council, IFRS Interpretations Committee and other Advisory bodies

1

(410)

(475)

Publications and related activities expenses

6

(3,094)

(3,399)

Trustee oversight

2

(1,001)

(1,106)

Premises, occupancy and related expenses

3

(1,453)

(1,400)

(24,519)

(25,215)

Net operating income

(3,921)

(2,152)

Finance income

9

656

390

Finance costs

9

(860)

(162)

Income before tax

3,717

2,380

Income tax expense

4

-

-

Comprehensive income for the year

3,717

2,380

Statement of changes in equity


Year ended 31 December 2014

Retained income at beginning of year

13,219

10,839

Comprehensive income for the year

3,717

2,380

Retained income at end of year

16,936

13,219


Statement of financial position


Year ended 31 December 2014

2014

2013

Notes

£'000

£'000

Assets

Current assets

Cash and cash equivalents

8,074

7,048

Contributions receivable

5

1,949

1,339

Trade and other receivables

955

688

Prepaid expenses

624

603

Inventories

110

137

Bonds at fair value, including accrued interest

8

64

672

Forward currency contracts at fair value

7

370

157

12,146

10,644

Non-current assets

Bonds at fair value, including accrued interest

8

8,602

5,685

Forward currency contracts at fair value

7

90

373

Leasehold improvements, furniture and equipment

3

597

709

9,289

6,767

Total assets

21,435

17,411

Liabilities

Current liabilities

Trade and other payables

359

338

Payroll taxes payable

552

581

Accrued expenses

892

1,124

Contributions received in advance

5

254

350

Rent incentive

3

82

82

Publications revenue received in advance

6

965

780

Forward currency contracts at fair value

7

123

66

3,227

3,321

Non-current liabilities

Forward currency contracts at fair value

7

489

-

Lease reinstatement obligation

3

556

562

Rent incentive

3

227

309

1,272

871

Total Liabilities

4,499

4,192

Net assets

16,936

13,219


Statement of cash flows


Year ended 31 December 2014

2014

2013

Notes

£'000

£'000

Operating activities

Cash received

Contributions

21,980

19,497

Publications and related activities

5,570

5,604

Funding for Asia-Oceania office

5

257

315

Interest

215

129

Foreign exchange settlements

184

142

Other receipts

16

25

Cash paid

Salaries, wages and benefits

(17,097)

(16,162)

Publications and related activities direct costs

(3,011)

(3,444)

Trustees' fees

(685)

(612)

Other operating expenses

(4,051)

(4,975)

Net cash from operating activities

3,378

519

Investing activities

Matured bonds receipts

612

700

New bond purchases

(2,885)

(2,385)

Purchase of leasehold improvements, furniture and equipment

(50)

(66)

Net cash from operating activities

(2,323)

(1,751)

Effects of exchange rate changes on cash and cash equivalents

(29)

(99)

Net increase (decrease) in cash and cash equivalents

1,026

(1,331)

Cash and cash equivalents at the beginning of the year

7,048

8,379

Cash and cash equivalents at the end of the year

8,074

7,048


The accompanying notes form part of these financial statements.


Notes to the financial statements


Year ended 31 December 2014

Accounting policies

The functional and presentation currency is sterling.

The Foundation's most important intangible asset is the intellectual property embodied in IFRS. The Foundation does not recognise this asset because the value and future economic benefits cannot be reliably measured. Accordingly, costs related to the development of IFRS are recognised as an expense when they are incurred.

All other accounting policies that are relevant to an understanding of the financial statements are provided throughout the notes to the financial statements.

Current period and future changes to the accounting policies (including early application)

All accounting policies have been applied consistently to all years presented. The financial statements have been drawn up on the basis of accounting standards, interpretations and amendments effective or applied early at 1 January 2014.

IFRS 15 Revenue from Contracts with Customers was issued in 2014 and is required to be applied from 1 January 2017. Because the Standard was issued during the 2014 financial year the Foundation has elected not to apply it to the current period. IFRS 15 will affect how the Foundation accounts for its publications and related revenue; however, from an initial assessment the Standard is not likely to have a material effect on the financial statements of the Foundation.

In 2009 the Foundation elected to apply IFRS 9 Financial Instruments (2009) earlier than the effective date. The Foundation has not elected to early apply subsequent amendments to IFRS 9 published in 2010 and 2014 which have an effective date of 1 January 2018. Because of the nature of its holdings in financial instruments and the limited credit offered by the Foundation, these amendments are not likely to have a material effect on the financial statements of the Foundation.

The Foundation has made important changes to the way it has organised and presented its explanatory notes to the financial statements. The changes were motivated by feedback about financial report presentation that has come from the technical work of the IASB in its major project on disclosure—the Disclosure Initiative.

Explanatory information

The explanatory notes have been organised into sections that provide a more cohesive story of the financial reporting implications of the Foundation’s core activity—the development of International Financial Reporting Standards—how it funds that activity and how it manages the contributions from the several currencies of its funding providers.

Each section presents the financial information and any material accounting policies that are relevant to understanding the activities of the Foundation. A consequence of this change is that some less important information has been removed or simplified to ensure that the more important information is clearer to users of the financial statements. See figure 2.


Figure 2

Activities

Funding

Managment of funds

Technical and operational activities

Contributions

Foreign currency management

Trustee oversight

Publications and related activities

Investments

Premises, occupancy and related operating expenses

Finance income and finance costs

Taxation

Activities


1. Technical and operational activities

IASB member and staff costs

The main costs associated with developing Standards are the salaries of the full-time IASB members and the staff. The Foundation had an average of 136 employees including IASB members and interns during 2014 (2013: 136).

2014

2013

£'000

£'000

IASB member salaries and related costs

7,601

8,031

Technical and operational staff salaries and related costs

9,166

8,704

16,767

16,735


The Trustees' Human Capital Committee reviews, bench-marks and recommends salary and benefit levels, which are reviewed and approved annually by the Trustees as a whole. IASB gross salaries covering all compensation and benefits for 2014 were as follows: £554,000 for the IASB Chair (2013: £548,600); £488,500 for the IASB Vice-Chair (2013: £483,600), and an average of £455,700 for other full-time IASB members (2013: £451,400). In 2014 the Trustees did not replace two IASB members who completed their terms in June, reducing the number of IASB members from 16 to 14. In addition to the Trustees, IASB Chair and IASB Vice-Chair, the key management personnel include the Executive Director at an annual gross salary of £255,000 (2013: £220,000). The Foundation pays monthly contributions, at rates between 8% and 10 % of gross salary, into a defined contribution group personal pension scheme for substantially all staff except IASB members.

Other technical and operating costs

2014

2013

£'000

£'000

Audit, legal and taxation advice

65

116

Communication and technology

285

264

External relations

61

49

Human resource and recruitment activities

200

206

Meeting video conferencing

139

202

Travel and meetings

808

1,053

Other office related costs

236

210

1,794

2,100

IFRS Advisory Council, IFRS Interpretations Committee and other advisory bodies

In 2014 and 2013, the Foundation paid remuneration to the Chair of the IFRS Advisory Council (£75,000) and two Vice-chairs (£25,000 each). Additionally, the Foundation reimbursed their travel and accommodation costs. Other members of the IFRS Advisory Council are not paid remuneration and meet all of their costs of attending meetings, such as travel and accommodation.

Members of the IFRS Interpretations Committee are not remunerated by the Foundation for their work on this body. However, they are reimbursed for their travel costs for attending the meetings.

Members of the IASB’s other advisory bodies meet their own costs of attending meetings. No members of these bodies are remunerated by the Foundation.

The remuneration, travel and meeting costs for these committees and advisory bodies are as follows:

2014

2013

£'000

£'000

IFRS Advisory Council – remuneration costs

106

125

IFRS Advisory Council – travel and meeting costs

116

118

IFRS Interpretations Committee – travel and meeting costs

188

232

410

475

2 Trustee oversight

The Foundation’s management and governance is overseen by 22 Trustees (2013: 22). The Trustees meet four times a year. The Chair of the Trustees receives £200,000 per annum. Other Trustees receive an annual fee of £20,000 and are reimbursed for their travel on Foundation business. There are six Trustee committees; committee chairs receive an additional £7,000

Costs associated with Trustee activities are as follows:

2014

2013

£'000

£'000

Remuneration costs

642

652

Travel and meeting costs

359

454

1,001

1,106

3 Premises, occupancy and related expenses

2014

2013

£'000

£'000

Rent

774

786

Rates, insurance and energy

472

446

Service charges

273

205

Depreciation

208

241

1,727

1,678

Less amounts included in publications costs

(274)

(278)

1,453

1,400


The Foundation operates from two premises, both of which are leased. The main activities are undertaken at 30 Cannon Street in London, UK. The Foundation also has an Asia-Oceania office located in the Otemachi Financial City South Tower in Tokyo, Japan. The Foundation has commitments for operating leases for the London premises until September 2018, with options to extend for a further 10 years, and for the Tokyo premises until September 2022.

The Foundation received a rent incentive at the commencement of the lease for its London premises, which was recognised as a liability. The aggregate benefit of the incentives is recognised as a reduction of the rental expense evenly over the lease term.

The estimated costs of reinstating the premises when the leases expire are recognised as lease reinstatement obligations and are included in leasehold improvements and expensed evenly over the remaining lease term. The estimated amount of the reinstatement obligation assumes that the London occupancy would end in 2018; however, the option to extend the lease for a further 10 years could affect the timing of any outflow.

All operating lease contracts contain market review clauses. Obligations due on the leases, excluding service charges and property rates, are as follows:


2014

2013

£'000

£'000

Within one year

835

839

In two to five years

2,365

3,161

More than five years

149

217

3,349

4,217

Leasehold improvements, furniture and equipment

Leasehold improvements, furniture and equipment are initially measured at cost, and then depreciated on a straight-line basis. Leasehold improvements are depreciated over the remaining period of the lease. Furniture and equipment are depreciated over 3 and 5 years. There have been no significant movements in 2014 other than depreciation.

2014

2013

£'000

£'000

Leasehold improvements

Cost

1,361

1,372

Accumulated depreciation

( 1,020)

(943)

Carrying amount

341

429

Furniture and equipment

Cost

1,095

997

Accumulated depreciation

(839)

(717)

Carrying amount

256

280

Total carrying amount

597

709

4 Taxation

For US tax purposes, the Foundation is classified as a not-for-profit, tax-exempt organisation. In 2006 the Foundation reached an agreement with the UK authorities regarding the status of taxation on its publications and related revenues. For 2014 the taxation expense is calculated on that basis, and is estimated to be £0 (2013: £0).

At the end of 2014 the Foundation is carrying forward a loss for UK tax purposes of £5,053,000 (2013: £4,496,000). The Foundation does not recognise this loss as a deferred tax asset, because of the uncertainty of being able to utilise these losses to offset future taxable income.

Funding


5 Contributions

Contributions to the Foundation are voluntary and mainly publicly sponsored. Contributions are recognised as income in the year designated by the contributor. Contributions that have been received but are designated for use after the reporting date are deferred and recognised as liabilities. Contributions received after the reporting date, but designated for use in the reporting period are recognised as income and as contributions receivable. All contributions received are for general use by the Foundation except for funding of the Asia-Oceania office as noted below.

The Foundation received separate funding of £257,000 / JPY 50,000,000 (2013: £315,000 / JPY 50,000,000) towards the operations of the Asia-Oceania office located in Tokyo. £330,000 (2013: £352,000) has been recognised in other income to offset the related operating expenses.

The Foundation receives contributions in a wide range of currencies, as follows:

2014

2013

£'000

£'000

UK Pounds

1,889

1,855

US Dollars

13,559

11,642

Euro

6,007

6,542

Other

1,136

1,333

22,591

21,372


For more information on how the Foundation manages its currency risk refer to note 7. A full list of contributors can be found on pages 44 to 48 of the Annual Report.

6 Publication and related activities

Revenues are generated from the sales of publications and subscriptions, and, from licensing and waiver fees. Publications revenue is recognised when a sale is completed. Subscriptions to the Foundation’s comprehensive package and eIFRS products are recognised as revenue on a time-apportioned basis over the period covered by the subscriptions. Licensing and waiver fees flow from contracts that grant rights to third parties to use the Standards for various purposes including products and services; revenue is recognised over the term of the contract on an accrual basis. The Foundation generally does not offer credit on publication or subscription sales.

Inventories comprise IFRS publications, which are carried at the lower of the cost of printing, on a first-in-first-out basis, or their net realisable value.

The following table presents the components of the net revenue generated by the Foundation’s publications and related activities.

2014

2013

£'000

£'000

Revenue

Sales of subscriptions and publications

3,243

3,238

Licensing and waiver fees

1,976

2,137

Other revenue - primarily conferences

283

246

5,502

5,621

Expenses

Staff salaries and related costs

1,726

1,954

Cost of goods sold

419

451

Depreciation

16

32

Other costs, including occupancy expenses

933

962

3,094

3,399

Net income from publications and related activities

2,408

2,222

Management of funds


7 Foreign currency management

To manage risks associated with fluctuations in voluntary contribution levels, the Trustees of the Foundation have set a target of having sufficient funds to be able to meet twelve months of its operating costs. The Foundation's expenses arise largely in sterling, whereas the organisation receives funding and future financing commitments, under various publicly sponsored funding regimes, primarily in US dollars and euros (refer to Note 5). Some expenses are incurred and paid in US dollars and euros after which the net contributions in those currencies are exchanged for sterling. This exposes the organisation to currency risk. This note explains the financial reporting consequences of how the Foundation manages the transfer of funds and the investment of its surplus funds.

The Trustees have implemented a strategy to mitigate the foreign exchange fluctuation risks connected with these expected future net contributions. The Foundation generally forward sells approximately 90 per cent of its expected net US dollar contributions and 70 per cent of its expected net euro contributions to fix a sterling equivalent. Foreign currency is sold forward on a two year rolling basis.

The forward foreign exchange contracts used by the Foundation to mitigate foreign exchange risk are recognised at fair value and subsequently measured at fair value through profit or loss.

The following table presents the fair value and notional value of these contracts by currency:

2014

2013

Forward foreign exchange contracts by currency:

Fair value

Notional value

Weighted average rate

Fair value

Notional value

Weighted average rate

'000

'000

'000

'000

Financial assets

USD (Level 2)

-

-

-

£453

$24,800

1.598

EUR (Level 2)

£460

9,500

1.195

£77

5,000

1.187

 

Financial liabilities

USD (Level 2)

£(612) $26,000

1.618

-

-

-

EUR (Level 2)

-

-

-

£(66)

3,300

1.196


The fair value of forward foreign exchange contracts is bank-provided and based on price models using observable exchange rates, described as Level 2 in IFRS 13 Fair Value Measurement. All non-current forward contracts expire in 2016. The effect of these forward contracts is that the Foundation is exposed to the currency risk associated with the expected remaining 10 per cent of projected net US dollar contributions and 30 per cent of projected net euro contributions that are not covered by the forward contracts.

A potential 10 per cent increase in average exchange rates for sterling would have produced estimated losses on the remaining actual net US dollar contributions received during the year of £443,000 and on the remaining actual net euro contributions received during the year of £245,000 To the extent that projected contributions in either currency change, the Foundation actively manages the amount of each currency forward sold.

Liquidity and interest rate risk

The Foundation manages its working capital to ensure sufficient cash resources are maintained to meet short-term liabilities. The Foundation has no borrowings.

The Foundation has a target of keeping an amount in cash equal to or exceeding the upcoming quarter’s expenditure. Cash is held either on current or on short-term deposits at floating rates of interest. Part of the cash at bank is held in euro, Japanese yen and US dollar accounts to meet expenditure obligations. Surplus funds are invested in sterling-denominated, fixed rate bonds of governments, governmental agencies, or international organisations, with AAA ratings at the time of purchase. These funds are reserves for continuing operations.

The Foundation manages and receives information from its advisors on its investments in bonds on a fair value basis that includes value changes attributable to interest rate risk. Financial results are provided on that basis to the Trustees and key management personnel. Bonds can be converted into cash if necessary.

8 Investments

Bonds are recognised at fair value and subsequently measured at fair value through profit or loss. The values of these Bonds are quoted on active markets, described as Level 1 in IFRS 13.

Fair values and notional values of current and non-current bonds are presented in the following table. *

2014

2014

2013

2013

Fair value

Notional value

Fair value

Notional value

£'000

£'000

£'000

£'000

Current including acccrued interest

64

-

672

613

Non-current including accrued interest

8,602

8,520

5,685

5,720

8,666

8,520

6,357

6,333


The Foundation measures all other financial instruments at amortised cost. The carrying amount of these instruments is a reasonable approximation of their fair value. These financial instruments include cash and cash equivalents, contributions receivable, publication related receivables, and trade and other payables.


* - This information is tagged using a non-dimensional structure. Alternative dimensional tagging is available in the accompanying XBRL instance document.

9 Finance income and finance costs

2014

2013

£'000

£'000

Finance income:

Interest income

124

103

Fair value gains on forward foreign exchange contracts

226

145

Fair value gains on bonds

122

-

Exchange gains on cash holdings

184

142

656

390

Finance costs

Fair value losses on forward foreign exchange contracts

(842)

(77)

Fair value losses on bonds

(18)

(85)

(860)

(162)

(204)

228


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