In Association with:- Online CPD for Accountants &     Professional AdvisorsAccounting and Reporting by         Charities ...
Financial Reporting Framework•   FRSs•   SSAPs•   Companies Acts (If Applicable)•   Accounting and Reporting by Charities ...
Charity SORP 05• Objectives  – Improve quality of financial reporting by    charities  – Enhance relevance, comparability ...
Charity SORP 05• Trustee / Directors Annual Report  – Reference and Administrative details of the    Charity, Directors an...
Charity SORP 05• Branches  – Accounted for as part of the whole charity  – Separate accounts where separate legal    entit...
Charity SORP 05• Related Parties Disclosure  –   Names of related parties  –   Description of the relationship  –   Descri...
Charity SORP 05• Balance Sheet  – Intangible fixed assets – FRS 10  – Tangible fixed assets – FRS 15  – Heritage assets – ...
Specifically Relevant FRS’s• SSAP 4 – Accounting treatment of  Government Grants  – Restriction on the assets use – alloca...
Specifically Relevant FRS’s• FRS 1 – Cashflows    – Applies to all financial statements intended to      give a true and f...
Specifically Relevant FRS’s• FRS 30 – Heritage Assets  – Applies to assets that are held and    maintained for contributio...
FRS 30 – Heritage Assets• Depreciation  – Not to be provided on heritage assets which    have indefinite lives  – Assets w...
FRS 30 – Heritage Assets• Summary of transactions relating to  heritage assets     – Cost of acquisition     – Value acqui...
Upcoming SlideShare
Loading in …5
×

Accounting and Reporting by Charities

791 views

Published on

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.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
791
On SlideShare
0
From Embeds
0
Number of Embeds
37
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Accounting and Reporting by Charities

  1. 1. In Association with:- Online CPD for Accountants & Professional AdvisorsAccounting and Reporting by Charities Presenter: Garret Wynne ACA, Dip IFRS, MBS Accounting, BA CPDStore.comUnit 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

×