We have launched a new consultation on income derived and are inviting comments and feedback from all registered Environmental Bodies (EBs).
Through this consultation exercise we aim to ensure that our guidance on the scope of and the principles for accounting for income derived are clear and concise. We are also inviting EBs to submit project examples where it is not clear if income derived has been generated, which may feed into our guidance and ways to account for and evidence income derived.
The consultation contains two proposals which have been developed following discussions with EBs.
The first proposal is to maintain the current requirements for income derived as set out in the EB Guidance Manual and the Guidance Note issued July 2012.
The second proposal is to seek assurance at project registration that EBs will spend any income derived from the operation of the LCF facility on the maintenance of that facility. EBs will be required to report the amount from: interest on qualifying contributions, sale of assets, royalties and returned funds as income derived on their Statutory Annual Return (Form 4).
Additionally we are also consulting on a number of new questions that could be added to the project application form (Form 2) to help EBs recognise and account for income derived when registering a new project with us.
60 Holly Walk,
Royal Leamington Spa,
The consultation is open until 24 January 2014 and we will also be holding a focus group to discuss this topic in January.
After reviewing the responses to the consultation document, we will publish a summary of responses alongside a next steps report which will outline our position on the way forward. This report will be available on our website.