Year End Accounts - Accounting Policies
This support article provides guidance on how to complete the 'Accounting Policies' section for Year End Accounts.
For information on completing other sections of the Year End Accounts, please see these further support articles:
IMPORTANT: Before creating accounts, you must complete all of the year-end checks needed to ensure the financial data in your accounts is correct - find out more.
Note: If you have any questions about completing any of the fields within this section, you will need to contact your Independent Examiner. Whilst our support team is always happy to help with software-related questions, accounting questions need to go to your Independent Examiner.
IMPORTANT: ExpensePlus does not provide advice on how to create accounts, and it is each organisation's own responsibility to ensure that their charity accounts comply with the law, taking professional advice as necessary.
Note: this is only applicable for churches and charities that create accounts on an Accruals basis
FURTHER INFORMATION COMING SOON
Pensions
IMPORTANT: the note regarding pensions in this 'accounting policies' section is different to the note that relates to pensions in the 'other notes' section.
Note: If you have employees who are part of the Baptist Union Pension scheme, here is some suggested additional text:
The charity is a participating employer in the Baptist Union Pension Scheme which, prior to January 2012, was a multi-employer defined benefit pension scheme. The charity is unable to identify its share of this scheme's assets and liabilities therefore, as permitted by FRS 102, the entire scheme is being treated as if it were a defined contribution scheme. The last actuarial valuation indicated that the obligation to provide defined benefits gives rise to a funding deficit and the charity, along with other participating employers, must make additional contributions to remedy the deficit. The obligation to make deficit reduction contributions in future years has been included as a liability in these financial statements. Further information about this defined benefits scheme, and the charity's obligation to contribute towards its funding deficit, is disclosed elsewhere in the notes to these accounts.
Note: If you have employees who are part of the Church Workers Pension Fund, here is some additional suggested text:
The charity contributes to the Church Workers Pension Fund, which is a multi-employer defined benefits pension scheme as described in Section 28 of FRS 102. The charity is not able to identify its share of the Scheme's assets and liabilities and, therefore, as permitted by FRS 102, the Scheme is accounted for as if it were a defined contribution pension scheme. Contributions to the Scheme are charged to the Statement of Financial Activities as they become payable. Further information about the Scheme is disclosed in the notes to the accounts..
Note: If you have employees who are part of the Church of England Funded Pension Scheme, here is some additional suggested text:
The charity also contributes to the Church of England Funded Pension Scheme, which is a multi-employer defined benefit pension scheme. The charity is unable to identify its share of this scheme's assets and liabilities therefore, as permitted by FRS 102, it is being treated as if it were a defined contribution scheme.
The last actuarial valuation indicated that the obligation to provide defined benefits gives rise to a funding deficit and the charity, along with other participating employers, must make additional contributions to remedy the deficit. The obligation to make deficit reduction contributions in future years has been included as a liability in these financial statements.
Further information about this defined benefits scheme, and the charity's obligation to contribute towards its funding deficit, is disclosed in the notes to the accounts.
[Remove if not required: The last actuarial valuation indicated a funding surplus and the charity will make contributions at a reduced rate in future years until the surplus is eliminated. Further information about this defined benefits scheme, and its funding surplus, is disclosed in the notes to the accounts].
To find answers to other Frequently Asked Questions relating to Year End Accounts check out this help guide article.