Accounting Standards and Guidance

Statements of Recommended Practice (SORPs)

Accounting and reporting by charities (FRS 102) - effective 1 January 2015

Selection 4: Accounting for branches, charity groups and combinations

25. Branches, linked or connected charities and joint arrangements
Introduction
25.1.All charities that operate through branches must apply this module. This module also applies to charities when accounting for:
 dotbulletspecial trusts and any other non-corporate entities which are administered by, or on behalf of, the reporting charity and whose funds are held for specific purposes which are within the general purposes of the reporting charity;
 dotbulletcharities linked by the Charity Commission (England and Wales);
 dotbulletcharities that are connected (Scotland); and
 dotbulletjoint venture arrangements involving shared assets or shared operations that do not involve a separate joint venture entity being established.
25.2.FRS 102 does not deal with accounting for branches, special trusts, linked or connected charities, and shared operations or assets. This module therefore reflects current accounting practice and the requirements of charity law which charities adopting this SORP must follow.
25.3.This module sets out:
 dotbulletwhat is meant by the term 'branch'?;
 dotbulletaccounting for branches;
 dotbulletwhen to apply branch accounting to other arrangements;
 dotbulletbranch accounting for special trusts (England and Wales) and similar arrangements;
 dotbulletbranch accounting for linked charities (England and Wales);
 dotbulletbranch accounting for connected charities (Scotland); and
 dotbulletaccounting for joint arrangements involving other charities.
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