Section 8 Consolidated accounts

8.1      Consolidated accounts

Some charities are part of a group structure with one or more subsidiaries. Producing consolidated accounts for the whole group provides an accurate picture of the charity and all its undertakings.

Parent charities with subsidiaries that have a combined gross income of £500,000 or more after eliminating consolidation adjustments in any financial year must prepare consolidated accounts using the methods and principles of the SORP. These accounts must be audited and submitted annually to OSCR.

Where charities prepare consolidated accounts (or have their results included in consolidated accounts) they must still produce their own accounts as required by the 2006 Regulations. The parent charities accounts can be included in the group accounts.

8.2      Consolidated Trustees’ Annual Report

Where a parent charity produces consolidated accounts, it may also prepare a consolidated trustees’ annual report for the charity and its subsidiaries.

A subsidiary charity which has been included in a consolidated trustees’ annual report need not prepare a separate trustees’ annual report as long as its own statement of account states:

• that a consolidated Trustees’ Annual Report has been prepared, and
• where copies of the consolidated Trustees’ Annual Report can be obtained.