Hartpury Annual Report July 2025

Hartpury University Annual Report and Financial Statements > 2024/2025

Notes to the Financial Statements (continued) Year Ended 31 July 2025

Investments

Provisions, contingent liabilities and contingent assets

Provisions are recognised in the financial statements when:

Investments in subsidiaries

1. The Institution has a present obligation (legal or constructive) as a result of a past event; 2. It is probable that an outflow of economic benefits will be required to settle the obligation; and 3. A reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects the risks specific to the liability. A contingent liability arises from a past event that gives the Institution a possible obligation whose existence will be confirmed only by the occurrence or otherwise of uncertain future events not wholly within the control of the Institution. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required, or the amount of the obligation cannot be measured reliably. A contingent asset arises where an event has taken place that gives the Institution a possible asset whose existence will be confirmed only by the occurrence or otherwise of uncertain future events not wholly within the control of the Institution. Contingent assets and liabilities are not recognised in the Statement of Financial Position but are disclosed in the notes to the financial statements.

Investments in subsidiaries are stated at cost less impairment in the Institution’s separate financial statements.

Other investments

Listed investments held as non-current assets, and current asset investments which may include listed investments, are stated at fair value, with movements recognised in the Consolidated Statement of Comprehensive Income. Investments comprising unquoted equity instruments are measured at fair value, estimated using an appropriate valuation technique. Commercial farming stocks are independently valued by CPW Daniell, a RICS Registered Valuer based in Gloucestershire. Growing crops, feedstuffs, sprays and fertilisers are valued at cost. Livestock, with the exception of the milking herd, which is included on a herd basis, are valued at discounted market value. Stocks

Provision is made for obsolete, slow-moving, and defective stocks.

Cash and cash equivalents

Maintenance of premises

Cash includes cash in hand, deposits repayable on demand, and overdrafts. Deposits are classified as repayable on demand where they are, in practice, available within 24 hours without penalty. Cash equivalents are short-term, highly liquid investments with a maturity of less than three months from the date of placement that are readily convertible to known amounts of cash and subject to an insignificant risk of change in value.

The cost of routine corrective maintenance is charged to the Consolidated Statement of Comprehensive Income in the period in which it is incurred.

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