Part 7Accounts, audit and annual returns
Accounts and balance sheets
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.