Office of Public Sector Information

PART 3 BALANCE SHEET

8.  The balance sheet must show the state of affairs of the investment fund as at the end of the relevant financial year by reference to the information specified—

(a) in the case of a common investment fund to which paragraph 3 does not apply, in paragraph 9;

(b) in the case of a common investment fund to which paragraph 3 applies, in paragraph 10;

(c) in the case of a common deposit fund, in paragraph 11.

9.  In the case of a common investment fund to which paragraph 3 does not apply, the specified information is—

(a) tangible fixed assets for use by the investment fund;

(b) investments;

(c) other assets, divided into—

(i) debtors;

(ii) deposits and loans;

(iii) cash at bank and in hand; and

(iv) others;

(d) total assets calculated by aggregating the amounts entered under of paragraphs (a), (b) and (c);

(e) derivative liabilities;

(f) other liabilities, divided into—

(i) creditors;

(ii) bank overdrafts;

(iii) other loans; and

(iv) distributions payable to participating charities;

(g) total liabilities calculated by aggregating the amounts entered under paragraphs (e) and (f);

(h) net assets which is calculated as follows—

A-B

where

A is the amount entered under paragraph (d),

B is the amount entered under paragraph (g).

10.  In the case of a common investment fund to which paragraph 3 applies, the specified information is—

(a) in relation to the amount of capital and income to be shared between charities participating otherwise than by way of deposit, the information specified in paragraph 9;

(b) in relation to the amount of capital and income that is required in respect of the liabilities of the investment fund for the repayment of deposits and for interest on deposits (including amounts required by way of reserve), the information specified in paragraph 11.

11.  In the case of a common deposit fund, the specified information is—

(a) cash at bank and in hand;

(b) debtors;

(c) deposits and investments, divided into—

(i) deposits at the Bank of England;

(ii) deposits with a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(iii) other bank deposits;

(iv) other deposits; and

(v) other investments;

(d) current assets not included in paragraphs (a) to (c);

(e) tangible fixed assets for use by the common deposit fund;

(f) gross assets which is calculated by aggregating the amounts entered under paragraphs (a) to (e);

(g) sums deposited by participating charities;

(h) other liabilities, divided into—

(i) creditors;

(ii) bank overdrafts;

(iii) other loans; and

(iv) interest accrued or payable to participating charities;

(i) sums held as an income reserve on trust for existing depositors; and

(j) total liabilities which is calculated by aggregating the amounts entered under paragraphs (g), (h) and (i).

12.  Despite the requirement in paragraph 11(c) to divide into separate categories the information to be provided by dividing the information into separate categories, the division of that information into those categories may, if the charity trustees so elect, be effected instead by means of a note to the accounts made in pursuance of Part 5 of this Schedule.

PART 4 METHODS AND PRINCIPLES

13.—(1) The statement of total return must give a true and fair view of the incoming resources and application of the resources of the investment fund in the relevant financial year.

(2) The balance sheet must give a true and fair view of the state of affairs of the investment fund at the end of the relevant financial year.

(3) The statement of changes in net assets must give a true and fair view of the movements in the net assets of the investment fund between their position at the beginning of the relevant financial year and their position at the end of that year.

(4) Where compliance with Part 1, 2, 3 or 5 of this Schedule would not be sufficient to give a true and fair view, the necessary additional information shall be given in the accounts or a note to them.

(5) If in special circumstances compliance with any of the provisions of Parts 1, 2, 3 or 5 of this Schedule is inconsistent with the requirement to give a true and fair view—

(a) the charity trustees must depart from that provision to the extent necessary to give a true and fair view; and

(b) particulars of any such departure, the reasons for it and its effect must be given in a note to the accounts.

14.—(1) Subject to paragraphs (2) and (3), in respect of every amount required—

(a) by paragraph 2 to be shown in the statement of total return,

(b) by paragraph 6 to be shown in the statement of changes in net assets;

(c) by paragraph 9, 10 or 11 to be shown in the balance sheet,

the corresponding amount for the financial year immediately preceding the relevant financial year must also be shown.

(2) Where that corresponding amount is not comparable with the amount to be shown for the item in question in respect of the relevant financial year—

(a) the former amount must be adjusted; and

(b) particulars of any material adjustment under this sub-paragraph must be disclosed in a note to the accounts.

(3) Where the effect of paragraph 13 is—

(a) that in the relevant financial year there nothing required to be shown by one or more of the provisions specified in sub-paragraph (1) above in respect of a particular item; but

(b) an amount was required to be shown by that provision for that item in the statement of accounts prepared for the financial year immediately preceding the relevant financial year,

sub-paragraph (1) has effect as if such an amount were required to be shown in the relevant financial year and that amount were nil.

15.  The values at which assets and liabilities of an investment fund are recorded in the balance sheet, and the recognition bases for gains and losses, must be determined in accordance with the methods and principles set out in the IMA SORP.