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Post Info TOPIC: Charity Reporting for Investements
Purple


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Charity Reporting for Investements
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Hi

Could somebody help me to clarify how to report something please?

I have a charity that holds a large amount of investments. During the financial year they sent a cheque for £50,000 to the stockbrokers that has been invested as appropriate alongside the many other investments that they hold.

How would you account for that £50,000? Would you show it as an expense under resources expended then the other side would show as an increase in investments along with any loss or gain overall in the year?

Also, if an accrual was missed in last years accounts and the costs have gone through this year you would show the duplicate cost this year?

 

Thanks in advance

 

 

 



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Trisha
Cheshire


Master Book-keeper

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re 1) hint - Think of your double entry. How are you showing the investment and where in the accounts? (one side)

re 2) no idea what you mean by duplicating the cost, please expand as to why it would be. Also you dont actually provide enough detail on the accrual that was missed. What quantum? What is the overall income to the charity? What is the balance sheet value?

Also very import - what is the status of the charity? Where is it based?

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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
Cheshire


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re duplication - ahh think you may mean - you are carrying actual cost for last year, havent got this year's invoice so want to accrue for this year as well? Clarity would be good, plus still the other questions remain pertinent.

__________________

 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
Purple


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Ignore the accrual bit, Ive put my brain in gear for that! Im still just trying to get my head around the investment. Im thinking it is simply debit investments and credit cash on the balance sheet. No impact on the income and expenditure statement. Would you agree?

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Trisha
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
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Purple wrote:

Ignore the accrual bit, Ive put my brain in gear for that! Im still just trying to get my head around the investment. Im thinking it is simply debit investments and credit cash on the balance sheet. No impact on the income and expenditure statement. Would you agree?

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 1) accrual- assume you've considered materiality/need to re-state prior year accounts for the error?

2) double entry. you are increasing an asset (investment) and decreasing an asset (bank) so yes

3) account Adj. You haven't answered my questions so nothing to add.

 



__________________

 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
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