The Covid 19 pandemic coincides with the financial year-end for many VCS organisations.
For others, the year-end will fall during or soon after this period of disruption for virus control.
Publicly accountable organisations including registered charities and social enterprises are still obliged to file and publish their annual accounts, but the disruption and financial impacts arising from the current situation have major implications for what and how they report.
Don’t assume that the disruption will excuse late filing!
The charities SORP committee has published guidance for charities on reporting the impact of the virus control measures on their operations and on whether they can report on a going concern basis. This guidance should be read alongside the Charity Commission’s guidance for the charity sector, which also covers practicalities such as trustees’ decision making during social distancing.
- COVID-19 control measures and financial reporting by charities (opens in a new tab)
- Charity Commission Covid 19 guidance for the charity sector (opens in a new tab)
Non-charity publicly accountable organisations such as Companies, CICs and Community Benefit Societies should refer to the Financial Reporting Council’s guidance on the Going Concern basis of accounting.
- FRC Guidance on the going concern basis of accounting (opens in a new tab)