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Which date for Financial Commitments

Is the date the accounting year end or the date the accounts are signed

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I am preparing some accounts for audit for a charity under Charities SORP - FRS102 etc.  The charity is negotiating to renew the lease on its premises which it is expected will be signed before the accounts are signed.  In the Other financial commitment note 'Other lease commitments not provided in the financial statements' are listed in a table showing what is due in under one year, in one to two years etc.  Should the new lease commitment be included in this table or should it be excluded on because it was not signed by the year end.  The signing of the lease is presumably going to be a post balance sheet event. 

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By Mike Bath
04th Sep 2019 10:00

The lease commitment that you disclose is the one that existed at the balance sheet date - i.e. that which exists under the current lease. If an updated lease is signed before the accounts are approved which significantly alters the future commitment then that's a non-adjusting event that should probably be explained.

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