The Christie NHS FT Annual Report & Accounts 2019-20

A simple sensitivity analysis indicates that a 3% movement in these estimations would increase or decrease the valuation of assets by £7.4m. In comparison, a 10% reduction in values could see a fall in land and buildings of £25.3m. This would result in a reduction in PDC dividend payable of £417k. The uncertainty arising from the current environment and uncertainties surrounding Covid-19 mean that, even with a recent, independent valuation, there is significant uncertainty over the valuations disclosed at 31 March 2020. See note 1.4.2.

1.1.3 Consolidation

The Consolidated Accounts of The Christie NHS Foundation Trust show both the NHS Foundation Trust and the Group balances. The Group balances comprise The Christie NHS Foundation Trust, The Christie Charitable Fund and The Christie Pharmacy Limited which are consolidated on a line-by-line basis.

The Christie Charitable Fund

The Foundation Trust is the corporate trustee to The Christie Charitable Fund. The Foundation Trust has assessed its relationship to The Christie Charitable Fund and determined it to be a subsidiary because the Foundation Trust is exposed to, or has rights to variable returns and other benefits for itself, patients and staff from its involvement with the charitable fund and has the ability to affect those returns and other benefits through its power over the fund. The Charitable Fund's statutory accounts are prepared to 31 March in accordance with the UK Charities Statement of Recommended Practice (SORP) which is based on Financial Reporting Standards (FRS) 102. On consolidation, necessary adjustments are made to the charity's assets, liabilities and transactions to: - recognise and measure them in accordance with the Foundation Trust's accounting policies; and - eliminate intra-group transactions, balances, gains and losses. The Charitable Reserves are comprised of the following Fund types: (a) Restricted Funds - where there is a legal restriction on the purpose to which a fund may be put, the fund is classified in the accounts as a restricted fund. (b) Endowment Funds - Funds where the capital is held to generate income for charitable purposes, and which cannot be spent, are accounted for as endowment funds. Income credited to endowment funds is transferred to designated funds to be utilised in line with the terms of the endowment. ( c) Unrestricted Funds - These include those funds which the trustee is free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds which the trustee has chosen to earmark for set purposes. The major funds held within these categories are disclosed in Note 27.2 The Trust has one wholly owned subsidiary - The Christie Pharmacy Limited (company number: 11027496). The Christie Pharmacy was incorporated on 23 October 2017 and The Christie NHS Foundation Trust holds 1 ordinary £1 share in The Christie Pharmacy Limited which is 100% of the available shares. Subsidiary entities are those over which the Trust is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The income, expenses, assets, liabilities, equity and reserves of the subsidiary are consolidated in full into the appropriate financial statement lines. On consolidation, necessary adjustments are made to the company's assets, liabilities and transactions to: - recognise and measure them in accordance with the Foundation Trusts' accounting policies; and - eliminate intra-group transactions, balances, gains and losses. The Christie Pharmacy Limited's statutory accounts will be prepared for the year ending 31 March 2020 in accordance with Financial Reporting Standards (FRS) 102. The Christie Pharmacy Limited is accounted for using the cost method in the Trust accounts. The Christie Pharmacy Limited

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