Giving: the whole story

Article Abstract:

The standardization of accounting for charities under SORP 2, Accounting by Charities, in May 1988, will aid in identifying illegal operations and give donators a better understanding of where their donations are going. It is important to use different measures for rating the income and expenditure of charities than one would use for rating the income of a commercial corporation. Greater segmentation of voluntary income and its associated costs are needed to appraise a charity's strengths and weaknesses. There should be full disclosure of direct costs, gross sales, rents, salaries, and other direct overheads. Charities can be grouped into grant making, service-providing, or endowed-foundation organizations.

United Kingdom, Charities, Charitable trusts, Charitable societies

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A problem of compatibility

Article Abstract:

Differences between accounting for pension costs under the UK and US standards (SSAP 24 and SFAS 87, respectively) are explained for companies which must satisfy both standards. The UK regulation is mandatory on or after Jul 1, 1988, and the US regulation has been in effect since Dec 15, 1986. Under the UK standard, companies must estimate what the benefits will cost as a steady percentage of salaries in the long term. The US standard, though, requires an estimate of benefits cost over the accounting period, based on a point in time.

Pensions, Financial Accounting Standards Board, Accounting Standards Committee

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Off-balance sheet finance - the legal view

Article Abstract:

The controversy between accountants and lawyers in the UK regarding the use of off-balance sheet finance is discussed from the lawyers' perspective. The Law Society agrees with the objectives of accountants who want to clarify the rules regarding off-balance sheet financing and bring those rules up to date. The Law Society disagrees with the solutions proposed by the Technical Committee.

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