Consolidation of NHS charities: 2020/21 considerations

12 January 2021


Where an NHS body is a corporate trustee of an NHS charity, that charity will be consolidated into the NHS body’s accounts unless it is immaterial to those accounts. Most NHS charities are not material so are not consolidated. In 2020/21, the grants from NHS Charities Together and donations from the public as a result of the Covid-19 pandemic may mean that this is no longer the case. 

This briefing sets out the issues that the NHS body should consider when determining whether consolidation is required and includes a worked example. 

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.  


Consolidation of NHS charities: 2020/21 considerations

January 2021 (PDF 377KB)


Additional documents

Using NHS charitable funds

April 2020 (PDF 305KB)

Impact of Covid19 on charitable funds v2 (1)

April 2020 (PDF 421KB)

CF example accounts 2020

May 2020 (PDF 919KB)

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