The Christie NHS FT Annual Report & Accounts 2019-20

1.1.4 Consolidation - Joint ventures

Joint ventures are separate entities over which the Trust has joint control with one or more other parties and where it has the rights to the net assets of the arrangement. The meaning of control is to exercise control or power to influence so as to gain economic or other benefits. Joint ventures are accounted for using the equity method. Valuation of the investment in the Joint Venture is recognised at cost and the carrying amount increased or decreased to recognise The Christie's share of its profit or loss. The Trust has the following joint ventures:

- The Christie Clinic LLP - trading as The Christie Private Care (TCPC) - The Christie Pathology Partnership LLP (CPP) - CPP Facilities LLP (CPPFAC)

The figures in the accounts as disclosed in note 11 for the above are based on audited accounts to 31 December 2019 and management accounts for the period to 31 March 2020.

1.2 Income

1.2.1 Trust Income

The main source of revenue for the Trust is contracts with commissioners in respect of healthcare services. Revenue in respect of services provided is recognised in accordance with IFRS 15 when (or as) performance obligations are satisfied by transferring promised services to the customer, and is measured at the amount of the transaction price allocated to that performance obligation. At the year end, the Trust accrues income relating to performance obligations satisfied in that year.

1.2.2 Revenue from Research Contracts

Where research contracts fall under IFRS 15, revenue is recognised as and when performance obligations are satisfied. For research trial contracts, it is assessed that the revenue project constitutes one performance obligation over the course of the multi-year contract. In these cases it is assessed that the Trust’s interim performance does not create an asset with alternative use for the Trust, and the Trust has an enforceable right to payment for the performance completed to date. It is therefore considered that the performance obligation is satisfied over time, and the Trust recognises revenue each year over the course of the contract.

1.2.3 Income from the sale of non-current assets

Income from the sale of non-current assets is recognised only when all material conditions of sale have been met and is measured as the sums due under the sale contract.

1.2.4 Charitable Income

a) Legacies - Pecuniary legacies are recognised as they are received or where the receipt of the legacy is probable. - Residuary legacies are included in the accounts at the earlier of receipt or agreement of the estate accounts. - Finalisation of the estate accounts is assumed when notification of this is received from the personal representatives. - Reversionary interests, involving a life tenant, are not recognised in the accounts due to the inherent uncertainties involved. - Legacies to which the charity is entitled and for which notification has been received but uncertainty over measurement remains, are disclosed, if material, as contingent income.

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