Windfalls deferred?
Sue Ladell highlights inconsistencies in guidance on when to recognise legacy income...
Charities have been inconsistent in their accounting for legacies for many years. Our own analysis of the range of year-end legacy debtors accounted for by the top 50 legacy receiving charities shows a huge diversity in practice with some charities recognising literally no debt, whilst others recognise over seven months’ worth1. Within the top 10 charities this can mean a difference of around £30m in the perceived wealth of the organisation.
Author: Sue Ladell
Sue Ladell is a senior manager within BDO Stoy hayward's Charity Unit. She has specialised in the charity sector for over ten years and currently advises a wide range of charities including those operating both nationally and internationally
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