Charitable donations

crebel81

Hey folks,

Just a bit confused here as how to deal with charitable donations. If a company which is audited makes for example 5k in donations to an approved charity in the year, can this figure be included somewhere in the P & L? If not, how should it be treated?

Also, I believe a note is required in the directors report detailing the charity and the amounts donated etc. Would I be correct here?

Would appreciate anyones thoughts on this

Cheers

ants09

crebel81 wrote: »

Just a bit confused here as how to deal with charitable donations. If a company which is audited makes for example 5k in donations to an approved charity in the year, can this figure be included somewhere in the P & L? If not, how should it be treated?

It is included in the p & l account under charitable donations

crebel81 wrote: »

Also, I believe a note is required in the directors report detailing the charity and the amounts donated etc. Would I be correct here?

You are correct your meant to disclose it in the directors report the name of the charity, the amount and also a brief discription

crebel81

ants09 wrote: »

It is included in the p & l account under charitable donations



You are correct your meant to disclose it in the directors report the name of the charity, the amount and also a brief discription

Thats great ants. Thanks for that. So in relation to the brief description, im assuming this would entail a description of the charities activities or something along those lines

dbran

Hi

I have checked the company's disclosure checklist that we use (mercia's) which I believe it is up to date.

There is no requirement to disclose a donation to a charity in the directors report of a company or in any of the notes. If you have a source for this which says otherwise perhaps you could post it.

There is a requirement to disclose political donations which exceed €5078 in the directors report. However this is clearly a different kettle of fish altogether.

You can of course opt to disclose it voluntarily but you do not have to.

Kind Regards


dbran

ants09

dbran wrote: »

There is no requirement to disclose a donation to a charity in the directors report of a company or in any of the notes. If you have a source for this which says otherwise perhaps you could post it.

The ASB PN 324 and the FRSSE (effective april 2008) paragraphy 18.1

Regards

Ants09

dbran

Hmmmmm...You are right!!

Although The FRSSE is derived primarily from UK legislation it would presumably be binding if you are producing accounts from it even if it goes beyond the equivalent Irish legislation.

I stand corrected.

Kind Regards


dbran

hivizman

Are we talking about the UK or Ireland? Para. 18.9 of the FRSSE (2008 edition) states: "If the company, or the company and its subsidiaries, has in the financial year given money for charitable purposes and the money given exceeds £2,000 the amount given for each of the purposes for which money has been given must be disclosed." However, this paragraph is printed in small capitals, which means that it applies only in the UK.

In Ireland, the Electoral Act 1997 (s. 26) imposes a duty on companies to disclose certain political donations, but this does not apply to charitable donations. The requirements for the Directors' Report for Irish companies are still largely dependent on s. 158 of the Companies Act 1963, although there have been some additions since then in the disclosure requirements. As far as I can see, however, there is no requirement for Irish companies to disclose charitable donations in the Report of the Directors. This doesn't prevent an Irish company from disclosing information about charitable donations voluntarily.