| |
| |
| |
Grant income recognition: The most misunderstood area? | |
Grant income can be one of the more judgemental areas in charity accounts. Even with helpful guidance under the Charities SORP (FRS 102), different funding arrangements can lead to different interpretations in practice, which is why early discussion and clear documentation can be so valuable. In many cases, the challenge is not the accounting principle itself, but rather how the terms of each funding agreement apply to the charity’s particular circumstances. | |
The core principle
Under the SORP, grant income should only be recognised when three criteria are met: - Entitlement – the charity is entitled to the income
- Probability – receipt is more likely than not
- Measurement – the amount can be measured reliably
| | | |
While straightforward in theory, the real challenge lies in assessing entitlement, particularly where grants include conditions. | |
| |
| |
Cultural tax reliefs: An increasingly important source of funding | |
| |
The overall message is encouraging. These reliefs are supporting activity across the cultural sector, enabling organisations to deliver work that might otherwise be difficult to sustain. However, the evaluation highlights a wider issue that many cultural organisations will recognise. | |
| |
| |
| |
James Cowper Kreston is a leading firm of accountants and business advisers, with offices across the South of England. Many of our partners and senior staff are trustees for charitable organisations so have an in-depth understanding of your operations and how to maximise your charities potential.
If you would like to discuss this topic further, then please contact a member of our charities team at James Cowper Kreston.
Kind regards Alexander Tomkinson | Manager T: +44(0)7586 020 718 E: atomkinson@jamescowper.co.uk | | | |
| |
| |
| |
| |
| |
| |
| |
| |
.jpg)
