- Joined
- May 5, 2023
- Messages
- 4
- Reaction score
- 1
- Country
Hi, grateful if anyone can clarify the following for me - I'm not an accountant but a charity bookkeeper preparing the draft financial statements for audit.
The charity I'm working with uses total return. The charities SORP is clear that both investment income and the investment gains and losses must be shown on the SOFA. But because both the investment income and the capital gains accrue in the investment fund pending allocations to the income fund... the investment income is sitting as part of the investment gains figure. So my question is... is this income (dividend/interest income on the investments during the year) netted off from the investment gains line on the SOFA? Otherwise isn't it being counted twice??
Any advice on how to show/calculate the investment gains line when using total return would be welcome. (I've got a separate line showing the transfer from endowment to unrestricted for the funds that were actually drawn down from the investment fund to the income fund during the year).
TIA
The charity I'm working with uses total return. The charities SORP is clear that both investment income and the investment gains and losses must be shown on the SOFA. But because both the investment income and the capital gains accrue in the investment fund pending allocations to the income fund... the investment income is sitting as part of the investment gains figure. So my question is... is this income (dividend/interest income on the investments during the year) netted off from the investment gains line on the SOFA? Otherwise isn't it being counted twice??
Any advice on how to show/calculate the investment gains line when using total return would be welcome. (I've got a separate line showing the transfer from endowment to unrestricted for the funds that were actually drawn down from the investment fund to the income fund during the year).
TIA