Accounting Policies

When creating year end statutory finance reports the notes confirming various aspects of accounting policies and changes are defined and/or amended via the following screens.

• 1.1 Basis of Accounting
• 1.2 Going concern
• 1.3 Change of accounting policy
• 1.4 Change of accounting estimates
• 1.5 Material error in prior year
• 2.1 Policies - Income
• 2.2 Policies - Expenditure & Liabilities
• 2.3 Policies - Assets
• 2.4 Policies - Alternatives

Navigation

Each item may be accessed by using the Previous/Next arrows or by clicking the action box symbol to navigate directly to a screen.

Note 1 Basis of Preparation

Note 1 is required for all charities. It is a narrative note needing user action.

1.1 Basis of accounting

This confirms that the basis of accounting for the charity is as stated and that the charity constitutes a public benefit entity.

1.2 Going concern

Charities must include a specific statement in the accounting policies note confirming they are a going concern, unless there are material uncertainties.

What the going concern basis means for charities

Assumption of continuity

That the charity is a going concern and will continue its activities for the foreseeable future

Trustee duty

That trustees are responsible for assessing the charity's ability to continue as a going concern

Forward-looking assessment

That the assessment should cover a period of at least 12 months from the date the accounts are approved

Key indicators

Trustees have evaluated the financial indicators such as the charity's balance sheet (assets vs. liabilities) and cash flow to ensure it can meet its obligations against pessimistic and optimistic scenarios

A discussion with the Independent Examiner or Auditor is recommended.

Notes 1.3 Change of accounting policy

If there have been any material changes to accounting polices then this note requires details. If there have been, a discussion with the Independent Examiner or Auditor is recommended, otherwise confirm NO.

Notes 1.4 Change of accounting estimates

If there have been any material changes to accounting estimates (assessed values)then this note requires details. If there have been, a discussion with the Independent Examiner or Auditor is recommended, otherwise confirm NO.

Notes 1.5 Material prior year errors

If there material errors in prior years have been discovered If there have been, a discussion with the Independent Examiner or Auditor is recommended, otherwise confirm NO.

Note 2 Accounting Policies

This note displays what has been selected as accounting policies under the Organisation profile of the entity.

Adding Notes 1.1 to 1.5

A standard text can be selected by clicking SHOW STANDARD NOTE. If a customised note is required simply click HIDE STANDARD NOTE to remove it entirely and then enter the note note text required. If part of the standard note is helpful COPY it and then amend as necessary.

Adding Notes 2.1 to 2.4

Each screen displays a list of policies that may apply to the organisation. Tick the box of the ones that apply. They will be displayed in the notes section of the Year End Report.

If the tangible fixed asset note is selected, the user will need to indicate the minimum cost for capitalising an asset. Also note that depreciation policies are picked from the polices associated with the fixed asset ledger module of the system; see Fixed Asset Depreciation Policies

For smaller churches and charities many notes will not apply and so do not need to be ticked.