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How to draw up a balance sheet for a registered CIO (Charitable Incorporated Organisation)

  • Member PM.Dip
  • 3 posts
  • # 119422

I have to prepare a balance sheet for a CIO that was registered in April 2015, facts are:

  • Accounts have been prepared on spreadsheets, on a receipts and payments basis, each year up to and including year to 29 Feb 2020
  • No balance sheet has been drawn up for that period
  • The charity annual income is never likely to exceed £100,000

 

Balance sheet is now required for 2 purposes:

  1. To enter opening balances to Sage for 1 March 2020
  2. To fill out a Corporation Tax return. HMRC have informed the charity that they will be requesting one, and I presume that will be for year end Feb 2021

If the balance sheet is also prepared on a receipts and payments basis for both the above purposes the situation is very simple:

Assets (bank balances) are equal to a total of the excess of income over expenditure for the 5 accounting periods as per CC16a + capital introduced of £139.

If however the balance sheet has to be prepared on an accruals basis for Corporation Tax I will have to include stocks, debtors, prepayments etc.

Would it be sensible to prepare a balance sheet on an accruals basis for 1 March 2020 and prepare the Charity Commission accounts also on that basis going forward? I cannot see any reason why I should not do this, as it would make management accounts reporting much simpler.

If I have a difference between the balance sheet and the capital account that is, say, less than £1000, would it be acceptable simply to adjust the value of the capital account.

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