Accounting principles

The Annual Accounts have been prepared in accordance with Guideline 650 for Fundraising Organisations (Richtlijn 650, revised 2016). These guidelines are in line with international standards, general guidelines and the guidelines of the CBF.

Accounting principles

Consolidation

The financial report for 2018 has been drawn up on the basis of a consolidation of the financial accounts of Stichting Free Press Unlimited, Free Voice South Sudan (FVSS) and our office in eastern Europe. We are obliged to include the items from the latter two organisations in our accounts, to comply with the stipulations of the guideline for annual reporting and our formal consultation and participation structure. Nevertheless, Free Press Unlimited intends for this to be a purely temporary arrangement – one that we aim to abolish as soon as possible in the case of both FVSS and our office in eastern Europe. Free Press Unlimited wishes to emphasise that in actuality, both foundations operate independently.

Intangible fixed assets

The intangible fixed assets are valued at their purchase cost minus the depreciations determined on the basis of the asset’s estimated lifespan. The depreciation term for the website is 3 years (33.3%).

Tangible fixed assets

The tangible fixed assets are valued at the purchase price minus the depreciations based on the estimated life span. The depreciation period for the telephone exchange, computers and other hardware and software is 3 years (33.3%). Office inventory is written off over 5 years (20%) and the renovation over 7 years (14.3%).

All (in)tangible fixed assets are held for business operations.

Receivables and accrued receivables

Receivables and accrued receivables are valued at nominal value minus certain impairments.

Obligations in connection with current projects

The item ‘Obligations in connection with current projects’ is the balance of contracts actually entered into with partner organisations (obligations) minus advance payments to these partner organisations.

Grants received in advance/Grants to be received

Many grants have a term that extends beyond a single calendar year. The difference between the advance awarded by the donor (the organisation issuing the grant) in a specific financial year and the project funds that are spent in that same year (realised grant income) is accounted for on the balance sheet as a ‘Grants received in advance’. If the realised grant income amounts exceed the donor’s advance, the difference is entered on the balance sheet as a receivable.

Accrued liabilities

Accrued liabilities are valued at nominal value.

Accounting principles for the balance of income and expenses

Grant income

Grant income amounts are allocated on the basis of the realised direct and indirect spending on the organisation’s objective within the guidelines established in the grant decision.

Income from national lotteries

Processing of earmarked income from national lotteries takes place in the year in which the amount is allocated. If on the balance sheet date this is a firm commitment and relates to the current financial year without explicit repayment obligations, it is stated as a receivable and as income.

Contributions and donations

Contributions and donations are accounted for in their year of receipt. Consequently, contributions and donations received in advance are not taken into account.

Allocation of costs

Management and administration costs, the costs of the organisation’s fundraising activities and costs of various objectives have been calculated based on an apportionment formula in accordance with the revised Dutch Accounting Standards for Fundraising Institutions (Richtlijn 650, revised in 2016), as explained on page 20 and 21.

Balance of income and expenses

The balance of income and expenses is calculated as the income that can be allocated to the relevant financial year minus the expenses required to realise this income.