ANNUAL REPORT 2019

41 FINANCIAL REPORT 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. 2.9 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 lessValue 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 it has been designated, with the balance carried forward as deferred income. 2.10 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. 2.11 Pensions The Club operates defined contribution plans for the benefit of its employees. Contributions are expensed as they become payable. 4. EMPLOYEES 2019 2018 £ £ Staff costs were as follows: Wages and salaries 5,272,925 4,545,700 Social security costs 456,698 447,796 Cost of defined contribution scheme 281,856 243,178 6,011,479 5,236,674 3. OPERATING SURPLUS 2019 2018 £ £ The operating surplus is stated after charging: Depreciation of tangible fixed assets 708,339 638,961 Amortisation of grants received (270,882) (270,882) Operating lease rentals 20,285 20,285 Fees payable to the Club’s auditor and its associates for the audit of the Company’s annual financial statements 23,970 23,500 Defined contribution pension cost 284,521 241,423