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City Care - Performance report 2005 (Page 39)

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City Care - Performance report 2005
39
10. Financial Instruments
The Company is party to financial instruments as part of its
normal operations. These financial instruments include bank
accounts, accounts receivable, accounts payable and term
loans. All financial instruments are recognised in the Statement
of Financial Position and all revenues and expenses in relation to
financial instruments are recognised in the Statement of Financial
Performance.
11. Construction Contracts
Profits on contracts are recognised progressively over the
period of each contract. The amount included in the Statement
of Financial Performance, and value of the contract work in
progress in the Statement of Financial Position, are established
by assessment of individual contracts taking into account the
proportion of work completed.
12. Intangible Assets/Goodwill
Goodwill on acquisition of other business operations is
amortised on a straight line basis over the period of the
expected benefit.
The period of expected benefit for the intangible assets currently
held has been assessed as 4 ­ 5 years.
The carrying amount of goodwill is reviewed annually by the
directors and adjusted where it is considered necessary.
13. Statement of Cash Flows
Cash means cash balances on hand, held in bank accounts,
demand deposits and other highly liquid investments in which
the company invests as part of its day-to-day management.
Operating activities include cash received from all income
sources of the Company and records the cash payments made
for the supply of goods and services.
Investing activities are those activities relating to the
acquisition and disposal of non-current assets.
Financing activities comprise the change in equity and debt
capital structure of the Company.
Changes in Accounting Policies
There have been no changes to accounting policies.
Policies have been applied on a basis consistent with
prior years.

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