INTERNATIONAL 505 CLASS YACHT RACING ASSOCIATION
ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2002
INTERNATIONAL TREASURER'S REPORT ON THE ACCOUNTS
FOR THE YEAR ENDED 31ST DECEMBER 2002
The accounts for the year show a surplus of £3,101 following a surplus of £5,918 in 2001.
Income from subscriptions shows a minor decrease from that of the prior year as noted in the Treasurers report for the year ended 31 December 2001, as a result of the recording of £1,730 of subscription income relating to 2000 in 2001. The 2000 income was recorded in 2001 as the Association amended the revenue recognition policy from that of recognising revenue on receipt of cash to recognition of revenue when invoiced. The policy of recognising revenue when subscriptions are invoiced continues in the current year.
New boat registrations fell from 31 in 2001 to 19 in 2002 which accounts for the majority of the decrease shown. The gross amount of registration income of £85 per registration continues to be shown as income and actual expenditure shown separately.
The debtor figure continues to remain high in relation to turnover. This has arisen predominantly as invoicing of subscriptions occurs when the Association is advised of member numbers by the representative of each member country. The Association is generally advised as to membership numbers close to or after the year end which means that a high proportion of the invoices are raised with a 31 December date, which accounts for the high level of debtors on this date. The majority of debts are settled within 3 months, although there are a few persistant late payers.
During the year, the Association committed to the payment of £4,500 in relation to the filming and production of a television programme of the 505 Worlds in Freemantle, Australia. The payment relating to this production occurs in the next financial year. This will result in an exceptional increase in advertising expenditure in the year ended 31 December 2003 of £4,500.