Accounts for a Not For Profit organisation showing a Loss due to exceptional bad debt write off

Accounts for a Not For Profit organisation...

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I am doing the Accounts as at 31/3/11, for a Not For Profit organisation. There is a huge Loss for the year, which has wiped off the Reserves B/F and the Balance sheet is Negative as at 31/3/11. This Loss is due to a one off Bad debt write off. (about £15K). 

I have checked the management accounts to September 2011, and the company has just about made a surplus and caught up , so we know that it's not insolvent.

 Are there any extra disclosures we need to make in the final accounts for the year ended 31/3/11, seeing that at that point the company appears to be Insolvent?

Thanks and apologies if this is too basic, but better to ask and do things correctly.

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By Euan MacLennan
28th Sep 2011 13:30

Going concern

Why do people keep mentioning "Not For Profit organisation" as if it is relevant to the issue?

Assuming that it is a limited company (it does not matter whether by shares or guarantee), you need to disclose as your first Accounting Policy that the accounts have been prepared on a going concern basis on the grounds that the company will have earned sufficient profits (surpluses) in the following year to restore it to a solvent position.

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By aadil
28th Sep 2011 15:43

Thanks Euan and Chris for the replies. Yes you are right, NFP has nothing to do with the issue. Noted for future.

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By Chris Smail
28th Sep 2011 14:16

You need to explain why you have assumed going concern

somewhere in your accounting policies.

 

And what has Not for Profit got to do with anything? It still pays tax doesn't it?

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By Chris Smail
28th Sep 2011 17:12

It is like 'I'm a Social Enterprise'

Worthy, but woolly.

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