The Charities (Accounts and Reports) Regulations 2008

Form and content of statement of accounts: charities other than investment funds or special case charities

8.—(1) This regulation applies to a statement of accounts prepared by the charity trustees of a charity which is not an investment fund or a special case charity in accordance with section 42(1) of the 1993 Act.

(2) The requirements as to form and content of a statement of accounts to which this regulation applies are prescribed in paragraphs (3) to (11).

(3) The statement of accounts must consist of—

(a) a statement of financial activities showing the total incoming resources and application of the resources, together with any other movements in the total resources, of the charity during the relevant financial year; and

(b) a balance sheet showing the state of affairs of the charity as at the end of the relevant financial year.

(4) The statement of accounts must be prepared in accordance with the following principles—

(a) the statement of financial activities must give a true and fair view of the incoming resources and application of the resources of the charity in the relevant financial year;

(b) the balance sheet must give a true and fair view of the state of affairs of the charity at the end of the relevant financial year;

(c) where compliance with paragraphs (5) to (10) would not be sufficient to give a true and fair view as required under sub-paragraph (a) or (b), the additional information necessary to give a true and fair view must be given in the statement of accounts or in notes to the accounts;

(d) if in special circumstances compliance with any of the requirements of paragraphs (5) to (10) would be inconsistent with giving a true and fair view, the charity trustees must depart from the relevant requirement to the extent necessary to give a true and fair view.

(5) The statement of accounts must be prepared in accordance with the methods and principles set out in the SORP.

(6) Subject to paragraphs (7) to (9), the statement of accounts must, in relation to any amount required to be shown in the statement of financial activities or in the balance sheet for the relevant financial year, show the corresponding amount for the financial year immediately preceding the relevant financial year.

(7) Where a charity has more than one fund, only amounts corresponding to the entries in the statement of financial activities relating to the totals of both or all of the funds of the charity need be shown.

(8) Where the corresponding amount referred to in paragraph (6) is not comparable with the amount to be shown for the item in question in respect of the relevant financial year, the corresponding amount is to be adjusted.

(9) Where—

(a) the effect of paragraphs (4) and (5) is that there is nothing to be shown in respect of a particular item for the relevant financial year; but

(b) an amount was required to be shown in respect of that item in the statement of accounts for the financial year immediately preceding the relevant financial year,

paragraphs (4) and (5) have effect as if an amount were required to be shown in the statement of accounts for the relevant financial year, and that amount were nil.

(10) There must be provided by way of notes to the accounts the information specified in Schedule 2.

(11) The balance sheet must—

(a) be signed by at least one of the charity trustees of the charity, each of whom has been authorised to do so; and

(b) specify the date on which the statement of accounts of which the balance sheet forms part was approved by the charity trustees.