FRC proposes accounting amendments for gift aid payments

The Financial Reporting Council is proposing amendments to FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, which would allow the tax effects of gift aid payments made by subsidiaries to their charitable parents to be taken into account at the reporting date, where it is probable that the payment will be made in the nine months following the reporting date.

The proposed amendments are intended to address the significant differences in accounting treatment of such payments that arise in practice. The effective date of the changes is expected to be accounting periods beginning on or after 1 January 2019.

Comments are invited on the exposure draft, FRED 68, by 20 October 2017. See http://bit.ly/2jI3M46.