The measures put in place by the government to limit the spread of the virus have been changing on a daily basis. It is expected, at least in the shorter term, the limiting of the movement of people by restricting flights and other travel, cancelling events, and closing venues, various business activities and schools will continue and may even increase.
All of these developments and measures may have a broad range of implications for charities. How the impact on individual charities will depend on a number of factors including the charity’s key sources of income, areas of charitable activity, staffing models, contractual relationships, the nature of the charity’s assets and liabilities and the charity’s underlying funds structure.
Charity Trustees will already be facing unexpected challenges to their charities and it will be important that these are reflected into the necessary decisions that have to be made when reporting on the charity’s activities and financial position.
The key areas of focus of this update are as follows, being mindful that charities are diverse in their activities and their income generation and therefore, there may be some areas of focus not specifically addressed.
The key message is that management and Trustees will need to carefully consider the impact of coronavirus on the charity’s report and financial statements to ensure that these continue to reflect the financial activities and position of the charity in accordance with the Charities SORP.
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