2022 ANNUAL REPORT

43 FINANCIAL REPORT the amount charged is at a constant rate on the carrying amount. 2.9 Operating leases Rentals payable and receivable under operating leases are charged to the income and expenditure account on a straight line basis over the period of the lease. 2.10 Current and deferred taxation Current tax represents the amount of tax payable or receivable in respect of the taxable surplus (or deficit) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions.Timing differences are differences between taxable surplus and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other 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. 2.11 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. 2.12 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. 2.13 Pensions The club operates defined contribution plans for the benefit of its employees. Contributions are expensed as they become payable. 3. OPERATING SURPLUS 2022 2021 £ £ The operating surplus is stated after charging: Depreciation of tangible fixed assets 724,411 742,677 Amortisation of grants received (278,682) (278,330) Fees payable to the club’s auditor and its associates for the audit of the company’s annual financial statements 25,722 24,450 Defined contribution pension cost 314,295 299,660