Paragraph 7

(1)

This paragraph applies where—

(a)

group accounts are prepared for a financial year of a parent charity under paragraph 3(2), and

(b)

paragraph 6 does not apply in relation to that year.

(2)

If—

(a)

this paragraph applies in relation to a financial year of a parent charity, and

(b)

sub-paragraph (4) or (5) does not apply in relation to it,

paragraphs (3) to (8) of Article 68 shall apply in relation to the group accounts for that year as they apply in relation to the accounts of a charity for a financial year in relation to which paragraph (2) of that Article does not apply, but subject to the modifications in sub-paragraph (3).

(3)

The modifications are—

(a)

any reference to the charity trustees of the charity is to be construed as a reference to the charity trustees of the parent charity;

(b)

any reference to the charity’s gross income in the financial year in question is to be construed as a reference to the aggregate gross income of the group in that year; and

(c)

any reference to the funds of the charity is to be construed as a reference to the funds of the parent charity.

(4)

If the group accounts for a financial year of a parent charity are to be examined or audited in accordance with Article 68(3) (as applied by sub-paragraph (2) above), Article 68(3) shall apply in relation to the parent charity’s own accounts for that year (whether or not it would otherwise so apply).