Briefing / Consolidation of NHS charities: 2020/21 considerations

12 January 2021
1 CPD hour

The appendix to IFRS 10 Consolidated financial statement defines a subsidiary as ‘an entity that is controlled by another entity’. 

In practical terms, this means that when an NHS organisation is a corporate trustee, and the NHS charity is material to the NHS organisation then local consolidation is highly likely to be required. However, each NHS organisation and NHS charity will have to determine whether this is the case in their individual circumstance. 

If consolidation is required then there are practical issues to considering including timing of the accounts preparation and audit, liaising with auditors for both bodies, difference in accounting policies, intra-group transactions and disclosures. This briefing includes a worked example and discusses these considerations.  

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Keywords
NHS charities