ABSTRACT
This chapter looks particularly at some of the problems faced by the accountant in producing charity accounts. As we outlined in the previous chapters there are significant differences between accounts prepared for a commercial organization and those prepared for a charity. Many of these differences are enshrined in statute but others have arisen because of the particular needs of charities to express themselves in ways that make the accounts more understandable from a layman’s point of view. In particular we will look at fund accounting, recognition of income, the differing types of expenditure by a charity, branches and trading activities.
