Part 7Accounts, audit and annual returns
Accounts and balance sheets
79Duty to prepare revenue accounts
A registered society must ensure that there is prepared, in respect of each year of account—
a
a revenue account for that year which deals with the society's affairs as a whole, or
b
two or more revenue accounts for that year which deal separately with particular businesses carried on by the society.
80Accounts and balance sheets to give a true and fair view
1
A revenue account of a registered society must give a true and fair view of—
a
the income and expenditure of the society as a whole (if the account deals with the society's affairs as a whole), or
b
the income and expenditure of the society in respect of a particular business carried on by it (if the account deals with that business),
for the period to which the account relates.
2
Where two or more revenue accounts are prepared in respect of a registered society for a year of account (see section 79(b)), the accounts when considered together must give a true and fair view of the income and expenditure of the society as a whole for that year.
3
A balance sheet of a registered society must give a true and fair view of the state of the society's affairs as at the date of the balance sheet.
4
A member of a registered society's committee commits an offence if the member fails to take all reasonable steps to secure that—
a
a revenue account of the society complies with subsection (1),
b
revenue accounts of the society to which subsection (2) applies comply with that subsection, or
c
a balance sheet of the society complies with subsection (3).
5
No offence is committed if the person had reasonable grounds to believe, and did believe, that a competent and reliable person was charged with the duty of securing that the relevant subsection was complied with and was in a position to discharge that duty.
6
In proceedings for an offence under this section it is for the defendant (in Scotland, the accused) to prove the matters mentioned in subsection (5).
7
A person guilty of an offence under this section is liable on summary conviction—
a
in England and Wales, to a fine;
b
in Scotland, to a fine not exceeding level 5 on the standard scale.
C181Duty to display latest balance sheet at registered office
A registered society must, at all times, display a copy of its latest balance sheet in a conspicuous position at its registered office.
82Restrictions on publication of accounts and balance sheets
1
A registered society must not publish a revenue account or balance sheet unless the account or balance sheet complies with such of the requirements set out in the following table as apply in relation to it.
Accounts and balance sheets to which requirement applies | Requirement | |
---|---|---|
1 | Any revenue account or balance sheet | Must be signed by—
|
2 | Year end revenue account or balance sheet, where section 83 (duty to appoint auditors) applies to the society for the relevant year of account | Must—
|
3 | Year end revenue account or balance sheet, where section 85 (duty to obtain report in certain cases where section 83 disapplied) applies to the society for the relevant year of account | Must—
This ceases to apply if a direction under section 86 is made in respect of the relevant year of account (see row 7). |
4 | Interim revenue account or balance sheet, where section 83 applies to the society for the relevant year of account and the preceding year of account | Must—
|
5 | Interim revenue account or balance sheet, where—
| Must incorporate a report by an appropriate person stating whether, in the person's opinion, it complies with section 80(1) or (3). “Appropriate person” here means—
|
6 | Interim revenue account or balance sheet, where section 85 applies to the society for the year of account preceding the relevant year of account | Must incorporate a report by a qualified auditor stating whether, in the auditor's opinion—
|
7 | Year end or interim revenue account or balance sheet, where—
| Must incorporate a report by the auditors appointed pursuant to the direction stating whether, in their opinion, it complies with section 80(1) or (3). |
2
The requirements in the rows 4 to 7 of the table do not apply to an interim revenue account or balance sheet that—
a
is published together with the latest year end revenue account and balance sheet, which comply with the applicable requirements in row 2, 3 or 7 (as the case may be), and
b
is marked in legible characters in a prominent position “UNAUDITED REVENUE ACCOUNT” or “UNAUDITED BALANCE SHEET” (as the case may be).
3
In this section—
“interim balance sheet” means a balance sheet relating to the position at any time other than the end of a year of account;
“interim revenue account” means a revenue account for any period within a year of account except one ending at the end of that year;
“relevant year of account” means the year of account to which the revenue account or balance sheet relates;
“year end balance sheet” means a balance sheet relating to the position at the end of a year of account;
“year end revenue account” means a revenue account for—
- a
a year of account, or
- b
any period within a year of account which ends at the end of that year.
- a