Each year charities in England & Wales have to file an annual return with the Charity Commission, part of the regulatory burden that all charities face but one that is considered a vital part of the Commission’s oversight of the sector that helps them to identify and address areas of concern. This inevitably means that as new issues present themselves, and there have been a number of these that have arisen over the last few months which have attracted widespread media attention, the annual return is amended and updated to cover areas that the Commission feels it has become necessary to obtain greater information on.
There are many benefits that come from running your business through a corporate body, whether it be a company or a limited liability partnership. These benefits come at a cost though, one of which is the requirement to publish information about the business at Companies House.
Our financial reporting webinar will provide you with an update on recent and upcoming financial reporting developments. This is particularly important for company finance teams and others requiring an in-depth update on financial reporting developments.
Yesterday (20/09/2017) the FRC published a proposed amendment to FRS102 that solely relates to charities, which aims to achieve a consistent approach to the accounting for trading subsidiaries. There has been some confusion in this area in recent years following the ruling that the donation of a trading subsidiary’s profit to its parent charity is in fact a company distribution.
The Charity Commission issued a press release yesterday stating that in the year ended 31 December 2016, 97 charities, which have a collective total income of approximately £195 million, filed accounts that included a formally modified audit opinion. But what does this mean? Is this really an issue? It’s not unheard of for auditors to have disagreements with their clients over accounting treatments which, if unresolved, will likely result in a modification of the audit report.
The advancement of technology and Big Data has made it easier than before for auditors to capture, transform, share and analyse entire datasets which allows 100% (as opposed to a sample) to be integrated within a population. By presenting this information geographically, it enables patterns, trends, correlations and unusual transactions that may go unnoticed in text presentation to be identified more easily.
For good reasons the charity sector is an area subject to a considerable amount of regulation, including the requirement for auditors and independent examiners to report directly to the appropriate charity regulator should they have any matters of concern that need to be brought to the regulator’s attention.
New regulations have been announced by the Government that will come into force later this year. The new regulations are designed to encourage large businesses to improve their payment practices and address the problems caused by late payment to suppliers.
The filing options available to limited companies and limited liability partnerships (LLPs) when filing accounts with the Registrar of Companies have been impacted by the UK implementation of the EU Accounting Directive. Changes have been made to UK company law by The Companies, Partnership and Groups (Accounts and Reports) Regulations 2015 and The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016. The new regulations are generally effective for financial years beginning on or after 1 January 2016, with early adoption permitted for financial years beginning on or after 1 January 2015.