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Post Info TOPIC: Funds brought in through a merger
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Senior Member

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Funds brought in through a merger
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Hi all

I wondered if someone could just let me know their thoughts on the following.

I have a Tennis Club registered as a Community Amateur Sports Club.  They have recently merged with another tennis club through no formal agreement but the other tennis club have inputted a large cash amount.

Am I right in just thinking this should just be recorded as capital input?

Thanks in advance

Valerie



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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
lots to learn


Senior Member

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Just thinking further to this, I have not seen the accounts of the Tennis Club which merged with the one I am dealing with, only the figure that was brought in.

Should I be merging these accounts together?

Sorry, this is not anything I have encountered before so I would be grateful of any advice

Thanks

Valerie



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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Cheshire


Master Book-keeper

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Hi Valerie
Not seen you on here for ages.

First thing I would say is to find the documentation that advises what exactly has been agreed. Members should have had a vote on the course of action and that will have been documented in the minutes at a general meeting at the very least.

Is it a merger or an acquisition? What was the agreement in terms of all of the assets - not just the cash? (assuming there are other assets. Did they won their own building/courts etc? What kind of size or organisation are we talking about?)

Was the closing down CASC registered with HMRC - how will that be unravelled?

Yes the closing down should have produced final accounts so I would get a copy of these as well. Long time since I had something similar (back in 2000) - was for a registered charity at the time, but would suggest they would work along the same lines other than involvement of the charity commission of course.



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
lots to learn


Senior Member

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Hi Joanne

Thanks for your reply and apologies that I have been absent for a while.

I have all good intentions to have a regular check time to the forum but then things get in the way (usually not work related) !!

Your reply has set me thinking so I've requested some further information as you suggested.

I'm confident it is a merger and the club is a much smaller affair than the existing one, which didn't own any buildings/ courts etc so I'm thinking there is probably little in the way of assets other than the accumulated fund which is quite sizeable and being brought into the merged club.

I'll be back in touch when I get some more info

Thanks for now

Valerie

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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
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