Page 56 - SyI-Annual-Report

Income Statement for The Year Ended

31 December 2019

2019 2018

Notes £ £
Turnover 601,439 497,309
Cost of Sales 288 (6,963)
Gross Surplus 601,151 504,272
Administrative Expenses 637,583 522,065
Operating Deficit 4 (36,432) (17,793)
Interest Recievable and 260 413
similar Income
(36,172) (17,380)
2019 Annual Accounts
Interest payable and 30 -
similar expenses
Deficit Before Taxation (36,202) (17,380)
Tax on deficit - -

Deficit for the Financial (36,202) (17,380)
Year

Perceived Deficit Due to Deferred Income

Explained

In accordance with Financial Report Standard 102 section 1a, Armstrongs have accounted for deferred income
in the accounts. The principle is to “match” the correct income with the correct expenditure in the correct
period. [NB: Deferred income consists of the money you have received during the year which relates to next
year’s services. For instance, this could be a membership paid in December 2019 which relates to the 2020
year.]

In the normal run of things there would be a deferred income figure bought forward from last year.
Unfortunately, our accounts were not prepared on this basis before and all income received in the year has
been recognised as income in that particular year. This is not correct in accordance with Financial Reporting
Standards. The result of deferring income in these accounts for the first-time results in a greater-than-usual
deficit (due to the fact we had not accounted for deferred income bought forward).

However, whilst noting the increased budget deficit the Audit Committee expects this to decrease/fall in line
with budget following the accountancy realignment and additional reserves to be built up as a percentage
increase against revenue. The Institute remains in a strong fiscal position with total assets of £204,401.00 (as of
31st Dec 2019).

56