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Related party disclosures- Charity

RP disclosures when relationship changes

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Hi all,

Charity has a year end of 31 December 2019

The chairmen of the charity I work for left on the 30 June 2019. Before leaving he had made a donation of £1000. In September 2019 he donated £4000 to the charity at a charity gala.

Now we have come to the end of the year and we need to disclose his figure in our related party note for chairmen. Do we disclose £1000 or £5000?

My thought is that it should be £1000 as this was when he was a related party but I need to be spot on with this.

I have looked at Section 9.1-9.32 of the Charity Sorp FRS102 and Section 33 of Frs 102 and this scenario is not touched on, from what I have read. This is covered by the Intermational Accounting Standards but I cant use IAS for reference.

Any help or links that spell this out explicitly would be very much appreciated. Trustee donations are a hop topic for our auditors this year so this has to be right. I did speak to my boss and she is unsure hence why I am here. I have tried everything I can think of.

Thank you

 

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By DouglasN
26th Mar 2020 16:36

I vote for £1,000 RP disclosure. Was he a RP when he made the £4k donation - no, so no need to disclose, just a donation from Joe Public.

I would go with the £1k and then if the auditors query it argue your case. It is just a disclosure note so doesn't affect the TB figures so I don't think the auditors will be too upset - most auditors are nice people - not dragons that will roast you alive for this.

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By lionofludesch
26th Mar 2020 16:40

Disclose it to the auditors and take their advice.

Surely that's what you pay their fee for, not to mention that, ultimately, it's their agreement you seek.

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By DouglasN
26th Mar 2020 16:59

Not sure I agree, you pay the auditor to audit the accounts, not for accounts preparation. But yes, they will have an opinion and tell you what they think.

Although - when the OP says auditor, do they actually mean auditor or independent examiner?

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By lionofludesch
26th Mar 2020 17:07

If the charity fancies having a "clean" audit report, my advice remains to ask them.

Why would you stick with your call if the auditors are going to qualify their report ?

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By DouglasN
26th Mar 2020 17:18

I'm not disagreeing with your advice, but to suggest that the auditor would qualify their report is nonsense.

There would be a discussion about it, the auditor would suggest what they considered to be correct, and the charity would take this suggestion and amend the accounts, the auditor is now happy and issues a clean report.

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By lionofludesch
26th Mar 2020 17:21

Good.

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