This 30 minute Online CPD Course delivered by Garret Wynne of OmniPro provides a summary of the reporting requirements of Charities in Ireland. It provides information on the optional application of the Charity SORP and the key FRSs applicable under Irish GAAP.

1. In Association with:-
Online CPD for Accountants &
Professional Advisors
Accounting and Reporting by
Charities
Presenter:
Garret Wynne
ACA, Dip IFRS, MBS Accounting, BA
CPDStore.com
Unit 3, South Court, Block D, Iveagh Court,
Wexford Road Business Park, 5 – 8 Harcourt Road,
Carlow. Dublin 2.
059 9183888 01 4110000
www.OmniPro.ie www.CPDStore.com

2. Financial Reporting Framework
• FRSs
• SSAPs
• Companies Acts (If Applicable)
• Accounting and Reporting by Charities
SORP 2005 (Optional)
Accounting and Reporting By
Charities
• Statement of Recommended Practice
• SORP 2005
• Developed by ASB & Charity Commission
England and Wales
• Not required in Ireland
• Best Practice?
• Best Practice in the future?

3. Charity SORP 05
• Objectives
– Improve quality of financial reporting by
charities
– Enhance relevance, comparability and
understandability of info in accounts
– Clarification, explanation and interpretation of
accounting standards
– Assist those responsible for preparation of
directors/trustees report and accounts
Charity SORP 05
• Purpose of Annual Report & Accounts
– Discharge directors/trustees duty of
accountability and stewardship
– Report on deployment of funds, resources
available, liquidity of assets and solvency
– Assist users understand the charity’s financial
transactions and position at the end of the
year
Charity SORP 05
• Accounts Structure
– Statement of financial activities
– Income and expenditure account
– Balance sheet
– Cash flow statement
– Notes

4. Charity SORP 05
• Trustee / Directors Annual Report
– Reference and Administrative details of the
Charity, Directors and Advisors
– Structure, governance and management
– Objectives and activities
– Achievements and performance
– Financial review
– Plans for the future
Charity SORP 05
• Income
– Unrestricted Income
• Freely applicable and use for the charity’s general
purpose
– Restricted Income
• Specific application and separate treatment and
disclosure
• Use of income capital or both
• Based on the criteria governing the restriction
Charity SORP 05
• Fund balances disclosed in notes
– Unrestricted income
– Restricted income
– Permanent endowment
– Expendable endowment
• Funds in deficit
– Separately disclosed
– Explanation for deficit

5. Charity SORP 05
• Branches
– Accounted for as part of the whole charity
– Separate accounts where separate legal
entity
– Reported gross in Charity’s accounts
– Offset branch transactions
Charity SORP 05
• Statement of financial activities
– Single accounting statement
– Incoming resources
– Resources expended
– Transfers
– Other Gains and Losses
Charity SORP 05
• Related Parties
– Purchases, sales, donations, leases
– Supply of services – use of goods, property
and other assets
– Payments and benefits made to trustees or
directors under provisions of governing
documents

6. Charity SORP 05
• Related Parties Disclosure
– Names of related parties
– Description of the relationship
– Description of the transaction
– Amounts involved
– Outstanding balances at period end
– Amounts written off during the period
– Any other information relevant
– Can be made in aggregate
Charity SORP 05
• Related party disclosures not required
– Donation received as long as donor has not
attached specific conditions
– Minor or routine unremunerated services
provided
– Contracts of employment between a charity
and employees
– Contributions to employee pensions
Charity SORP 05
• Disclosure is also required
– Trustee remuneration and benefits
– Trustee expenses
– Staff costs and emoluments
– Costs of audit
– Cost of other professional services

7. Charity SORP 05
• Balance Sheet
– Intangible fixed assets – FRS 10
– Tangible fixed assets – FRS 15
– Heritage assets – FRS 30
– Investment assets
– Current Assets
– Current Liabilities
Charity SORP 05
• Balance Sheet (cont’d)
– Long term liabilities
– Provisions for liability and charges
– Members Funds
– Revaluation reserve
Charity SORP 05
• Accounting policies
– Incoming resources policy
– Resources expended policy
– Asset policy
– Fund structure
– Other policy

8. Specifically Relevant FRS’s
• SSAP 4 – Accounting treatment of
Government Grants
– Restriction on the assets use – allocate to
restricted fund
– Watch the terms and conditions of grant and
original documentation
Specifically Relevant FRS’s
• SSAP 5 – Accounting for VAT
– Irrecoverable VAT
– Included in relevant cost headings
– Consider separate disclosure in the notes to
the accounts
Specifically Relevant FRS’s
• SSAP 19 – Investment properties
– Open market value
– Without charging depreciation

9. Specifically Relevant FRS’s
• FRS 1 – Cashflows
– Applies to all financial statements intended to
give a true and fair view of the financial
position and profit or loss except those of
– Small entities (based on the small companies
exemption in companies legislation)
Specifically Relevant FRS’s
• CA 1986
– ( a ) its balance sheet total for that year shall
not exceed €1,900,000;
– ( b ) the amount of its turnover for that year
shall not exceed €3,810,000, and
– ( c ) the average number of persons
employed by the company in that year shall
not exceed 50.
Specifically Relevant FRS’s
• FRS 3
• FRS 11
• FRS 12
• FRS 15
• FRS 18
• Going concern

10. Specifically Relevant FRS’s
• FRS 30 – Heritage Assets
– Applies to assets that are held and
maintained for contribution to knowledge and
culture
– Historical, artistic, scientific, geophysical,
environmental qualities
– Reported as tangible fixed assets and
accounted for in accordance with FRS 15
– FRS 30 supersedes FRS 15 where it applies
Specifically Relevant FRS’s
• Cost recognition
– Reported at cost or valuation separately
identified
– Changes in valuation recognised in STRGL
– Impairment losses in accordance with FRS 11
• Where cost/valuation is not available and
cannot be obtained assets should not be
recognised
FRS 30 – Heritage assets
• Donated assets should be reported at
valuation
• Where assets are reported at valuation
– Date of valuation
– Method of valuation
– Internal/External valaution
– Any limitations on valaution

11. FRS 30 – Heritage Assets
• Depreciation
– Not to be provided on heritage assets which
have indefinite lives
– Assets with finite lives over estimated useful
lives
– Apply as appropriate
– Review carrying value, impairments in
accordance with FRS 11
FRS 30 – Heritage Assets
• Disclosure
– Indication of nature and scale of heritage
assets
– Policy for acquisition preservation,
management and disposal of HA
– Records maintained by the entity and extent
to which access is permitted
– Accounting basis for measurement bases
used
FRS 30 – Heritage Assets
• HA not reported in the BS
– Disclose why not in the notes
– Significance and nature
– Carrying amount of heritage assets at
beginning and balance sheet date
– Classes and groups of assets reported at
costs V valuation

12. FRS 30 – Heritage Assets
• Summary of transactions relating to
heritage assets
– Cost of acquisition
– Value acquired by donation
– Carrying amount of assets disposed and
proceeds
– Any impairments recognised in the period
FRS 30 – Heritage Assets
• Applicable from 1st of April 2010
• Transactions in relation to heritage assets
• Current and preceding year
• Comparative information retrospectively
applied
OmniPro
Supporting Irish Accountants
Unit 3, Southcourt, Iveagh Court
Wexford Road Business Harcourt Road
Park, Carlow Dublin 2
gwynne@omnipro.ie doneill@omnipro.ie
059 9183888 01 4110000