2021 ANNUAL REPORT

41 FINANCIAL REPORT deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable surpluses. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non‑depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset. 2.8 Income Income is measured at the fair value of the consideration received or receivable.The policies adopted for the recognition of turnover are as follows: – Amounts in relation to Cricketing and Commercial activities which represents sales to Members and the public at sales value less Value AddedTax; – Amounts in relation to Grants are amortised in accordance with grant terms; – Amounts in relation to Donations and Other Sources including distribution from the England andWales Cricket Board (ECB) are recognised when due; – All other amounts are accounted for as received, unless, in the case of Donations and Legacies, they are designated for specific purposes. Donations and Legacies are matched against the expenditure for which they have been designated, with the balance carried forward as deferred income. 2.9 Government grants The club is eligible for certain capital and revenue grants: – Revenue grants are accounted for when the conditions attaching to the grant are satisfied. They are released to the income and expenditure account as the related expenditure is incurred. – Capital grants are accounted for when the conditions attaching to the grant are satisfied and are accounted for as deferred income.The grants are released to the income and expenditure account over the anticipated useful lives of the assets to which the grants relate. 2.10 Pensions The club operates defined contribution plans for the benefit of its employees. Contributions are expensed as they become payable. 3. OPERATING SURPLUS 2021 2020 £ £ The operating surplus is stated after charging: Depreciation of tangible fixed assets 742,677 729,813 Amortisation of grants received (278,330) (271,000) Operating lease rentals - 6,105 Fees payable to the club’s auditor and its associates for the audit of the company’s annual financial statements 24,450 24,450 Defined contribution pension cost 299,660 281,194