Explanatory notes to the actual accounts

Explanatory notes to the annual accounts

General

The annual accounts were prepared in accordance with Guideline 650 of Fundraising Organisations (RJ650).

Associated parties

There is a mutual relationship between Stichting ZOA and ZOA Deutschland gGmbH which is formalized in a Charter Agreement. In accordance with Guideline 650 of Fundraising Organisations, no consolidated annual accounts have been prepared.

Consortia partners income

Income and expenditures of consortia partners are excluded from indicator percentages, unless otherwise indicated.

The annual accounts were prepared on historical cost basis or at fair value. Unless otherwise indicated, assets and liabilities are presented at historical costs. Income and expenditure are allocated to the period to which they relate. The annual accounts are presented in euros.

Reporting period

The annual accounts were prepared based on a reporting period of one year. The financial year coincides with the Gregorian calendar year.

Comparison with the previous year

The valuation principles and methods of determining the result are the same as those used in the previous year, with the exception of the changes in accounting principles as set out in the relevant sections.

Transactions in foreign currencies

Transactions in foreign currencies are converted against the exchange rate applicable at the time of transaction. Monetary assets and liabilities in foreign currencies are converted at balance sheet date in the functional currency against the rate applicable on that date. Non-monetary assets and liabilities in foreign currencies that are presented at historical cost are converted into euros at the exchange rates applicable on transaction dates. Differences in exchange rates appear as a result in the statement of income and expenditures.

Use of estimates

assumptions that influence the application of accounting principles, as well as the reported value of assets, liabilities, income and expenditure. The actual outcome may deviate from these estimates. The estimates and underlying assumptions are assessed on an ongoing basis. Revised estimates are used once the estimate changes and in future periods when revisions may have consequences.

Impairment

If the book value of an asset exceeds the value of the direct sales value - and/or the estimated present value of the future cash flow - impairment is charged, which equals the difference between the book value and the recoverable amount.

Financial instruments

During normal course of business, ZOA uses various financial instruments that expose the organisation to market and/or credit risks. These relate to financial instruments that are included on the balance sheet. Receivables on the balance sheet mainly relate to donor receivables and are generally obtained from large institutional parties. Therefore, the credit risks incurred by these receivables are limited. ZOA runs very limited interest rate risks, as the organisation does not have interest-bearing loans. The market value of the financial instruments stated on the balance sheet is approximately equal to their carrying amount. ZOA does not make use of financial derivatives.

Uncertainties in local legislation

Financial risk may arise from tax and regulatory legislation. In the unstable environments in which the organisation works, legislation is subject to varying interpretations; interpretations may also change over time. In our programmes we accept a minimal to cautious risk level in relation to local (tax) laws and regulations. Where management decided a position on the interpretation of relevant legislation could not likely be sustained, an appropriate amount has been included in the provisions in these financial statements.