Watch Tower Bible and Tract Society of Britain

Report of the trustees

For the year ended 31

August 2007

Structure, governance and management (continued)

Recruitment and appointment, induction and training of trustees
The  recruitment  and induction of  new  trustees  is  arranged  as  follows:  On  an  annual basis  the  trustees  review  potential  candidates.
These are required to be appointed as elders in congregations of Jehovah's Witnesses. Their abilities are evaluated by means of the
trustees'  personal  knowledge  of  the  candidates  or  by  a  "personal  qualifications  report"  provided  by  elders  with  knowledge  of  the
individuals. Trustees are given appropriate Charity Commission publications and training is arranged as part of the meetings of the
trustees when the charity's policies are discussed. This is supplemented by an annual training session provided by Calcutt Matthews.
Additionally, arrangements are made for new trustees to attend a comprehensive course that includes training in legal, organisational,
and financial matters.

The trustees of the charity also have key managerial roles at the charity headquarters. They meet several times each month, and are in
regular contact from day to day. Trustees are elected annually, by a simple majority of the members present at the AGM.

Organisational structure
The charity is a UK Company limited by guarantee.

The trustees organise the charity into a number of departments.  Each department has an experienced, trained overseer who makes
regular reports to the trustees.

Wider network
The charity is responsible for the spiritual welfare of Jehovah's Witnesses and those studying the Christian faith in Britain. Similar
charities  exist  in  many  countries  around  the  world.  Co-ordination  of  spiritual  affairs  is  through  the  Governing  Body  of  Jehovah's
Witnesses, located at their headquarters in the United States.

Related parties
Watch Tower Bible and Tract Society of Britain (the Society) works closely with International Bible Students Association (IBSA),
which  permits  the  Society  to  use  its  facilities  for  the  Society's  charitable  activities,  and  provides  accommodation  for  volunteers.
IBSA makes a monthly service and maintenance charge to the Society for the facilities it uses and for providing accommodation for
volunteers connected with the Society's activities. The Society passes to IBSA the cost incurred in printing and distributing the Bible-
based religious literature manufactured and delivered to destinations on its behalf, and all other overhead costs.

Risk management
The major risks to which the charity is exposed have been reviewed, with particular focus on events that would seriously impede the
operations of the charity. Strategies and safeguards are in place to reduce, as far as possible, the impact of those risks. Serious risks
include catastrophic loss and failure of internal controls.

Objectives and activities

Watch Tower Bible and Tract Society of Britain

Report of the trustees

For the year ended 31

August 2007

Objectives and activities (continued)

Grant making
The  charity’s  grant  making  policy  is  as  follows:  From  time  to  time  the  charity  is  asked  by  the  Governing  Body  of  Jehovah's
Witnesses  to  consider  helping  Jehovah's  Witnesses  in  countries  where  a  need  exists.  The  charity  first  satisfies  itself  that  the
expenditure  will  further  the  religious  work  of  Jehovah's  Witnesses,  and  after  confirming  that  sufficient  funds  are  available,  it  then
sends  the  money  to  the  organisation  caring  for  Jehovah's  Witnesses  in  that  country.  Finally,  reports  are  obtained  to  confirm  the
money was properly used.

Volunteers
The charity is run entirely by volunteers.

Achievement and performance

Charitable activities - Promoting Christian Missionary work
In assisting congregations of Jehovah's Witnesses and others in Britain with their spiritual and material welfare, the charity supports
over  80  travelling  ministers.    These  visit  the  congregations  on  a  regular  basis,  usually  twice  a  year,  during  which  they  provide
pastoral care. One of the primary objectives of these visits is for the travelling minister to promote the Christian missionary work by
providing  leadership  in  the  public  ministry  of  Jehovah's  Witnesses.  Additionally,  the  charity  supports  over  140  full-time  ministers
who  assist  congregations  to  which  the  charity  has  assigned  them.  The  assistance  provided  by  these  ministers  enables  local
congregations  of  Jehovah's  Witnesses  to  share  fully  in  promoting  and  preaching  the  good  news  of  God's  Kingdom  and  teaching
principles  of  Christian  living.  Such  principles  include  respect  for  secular  authority,  persons,  and  property,  and  the  maintenance  of
personal morality and family values and other facets of Christianity.

The  charity  also  runs  a  training  school  for  qualified  ministers  to  better  equip  them  to  render  spiritual  and  pastoral  care  in  the
community.  This  school,  the  Ministerial  Training  School,  gives  instruction  in  Bible  teachings  and  in  organisational  matters.  As  a
result  of  such  training,  some  are  assigned  to  serve  where  there  is  a  need  for  ministers  here  in  Britain,  whereas  others  receive
assignments in foreign countries. During the year 23 students graduated, bringing to 753 the number who have graduated since the
school was inaugurated.

Charitable activities - Making donations to further religious education overseas
During the year the charity continued to support the construction of places of worship in Africa and areas of Asia through making
grants totalling over £800,000. The completed places of worship will be centres for both local congregations of Jehovah's Witnesses
and members of the local community who wish to benefit from the practical values contained in the Holy Bible, which promotes both
the moral and spiritual edification of mankind.

The charity also provided material and financial assistance to Associations of Jehovah's Witnesses in several developing countries,
who are responsible for the general oversight of the activities of  Jehovah's Witnesses in that country.  The  funds, over £840,000 in
total,  were  given  to  promote  missionary  activity,  to  support  general  oversight  costs  of  the  local  Association,  and  to  assist  in  the
operation  of  local  congregations  of  Jehovah's  Witnesses.  Additionally,  literature  with  a  value  of  over  £2,400,000  was  donated
overseas, mainly to Africa, for use in advancing religious education.

Humanitarian aid of £90,000 was provided by the charity to those in need. This included funds to assist refugees returning to Burundi
from refugee camps in Tanzania. Specifically, the funds were for the purchase of roof sheets, doors and shutters so that the refugees
could construct modest homes for themselves.  Some 100 families benefited from this aid.  Clearly, much has been accomplished by
the charity in the year to advance its objects. The activities confirm that the work of the charity continues to benefit both Jehovah's
Witnesses and members of the community.

Fundraising activities
The  charity’s  rotary  presses  have  continued  to  produce  The  Watchtower  and  Awake!  magazines,  as  well  as  other  items  of  Bible-
based literature. A total of 280 million publications were printed, which included 140 million copies of The Watchtower and Awake!
magazines. The number of languages printed increased to 31 for The  Watchtower  and 12 for Awake! In total, the charity has sent
Bible-based  literature  to  69  countries  in  31  languages.  There  have  been  no  major  printing  machinery  purchases  this  year,  as  the
charity has adequate equipment to meet its production needs. Machines run at approximately 80% capacity. All of this literature is
used to advance religious education and educate the general public in spiritual and moral values. Funds are generated through the sale
of a sizeable proportion of this production to IBSA.

The charity carries out all its activities in harmony with Christian principles, and thus aims to minimise the impact its printing
activities have on the environment. It has thus launched a raft of energy saving measures which have resulted in an 8% decrease in
its carbon footprint despite a 1.4% increase in production.

Watch Tower Bible and Tract Society of Britain

Report of the trustees

For the year ended 31

August 2007

Achievement and performance (continued)

Internal controls
To  ensure  the  charity  is  able  to  achieve  its  objectives,  appropriate  internal  controls  have  been  established.  These  ensure  that  the
monthly  financial  reports  accurately  represent  all  transactions,  provide  reasonable  assurance  that  finances  are  being  used  for  their
intended purpose, and verify that proper controls and procedures are in place, and adhered to, so that figures are recorded accurately
and the accounts are in balance.

The internal audit programme has been achieved. The internal auditor and his assistant, both drawn from the volunteer work force,
have a set agenda to pursue throughout the year, and reported in writing to the trustees in October 2007. Approved recommendations
were implemented.

Financial review

Reserves policy
Because  of  the  nature  and  sources  of  the  charity's  income,  the  charity  can  plan  confidently  with  relatively  small  reserves.  The
established policy is to ensure that it has on hand in liquid funds at least 3 months working expenditure. At the year-end, the liquid
assets on hand were equivalent to 4.2 months of expenditure (2006: 4.2 months).

Principal funding sources
The  primary  funding  activity  is  the  manufacture  and distribution of  Bible-based  religious  literature  on behalf  of  IBSA,  the  cost of
which is passed on. The charity also relies to a large extent on voluntary donations to support its work, and has a consistent income
base  through  Gift  Aid.  In  addition,  the  charity  has  an  active  treasury  management  department  to  handle  investments  it  has  been
bequeathed or converted.

Investment policy and objectives
In harmony with paragraphs 4.18 and 4.19 of the Memorandum and Articles, which give power to invest funds in any lawful manner
having full regard to the suitability of the investments and the need for diversification, investments are selected with consideration
for  Christian  principles.  The  objective  is  to  preserve  capital  and  achieve  a  real  return  of  4%  plus  inflation.  This  has  not  been
achieved.  The  trustees  after  considering  the  facts  and  noting  that  the  investments  comprise  largely  of  fixed  income  and  cash
instruments  have  taken  advice  on  diversifying  the  investments  further  both  by  asset  class,  currency  and  region  in  order  to  achieve
their objectives in coming years.

Future developments

The  charity  has  been  asked  by  the  world  headquarters  of  Jehovah's  Witnesses  to  take  the  lead  in  supporting  the  maintenance  of
Hantscho presses in Argentina, Australia, Brazil, Canada, Colombia, Mexico, Nigeria, Philippines, and South Africa. These presses,
as with the charity’s own, are used to print Bible-based literature. Due to the age of these machines, and the difficulties in obtaining
spare parts, many components are manufactured in-house and shipped to these branches. The charity is, therefore, strengthening its
engineering workshop facilities and has on order two new lathes at a cost of £75,000.

Also on order for January 2008 are several new trucks and vans to the Euro 4 specification. These vehicles are necessary to satisfy
the London Emissions Zone legislation coming on stream in February 2008. It is estimated that the charity shall spend £300,000 on
these vehicles, which will be used to distribute the literature it produces.

The  charity  anticipates  being  able  to  continue  to  have  a  full  share  in  funding  the  activities  of  Jehovah's  Witnesses  in  developing
countries  and  sharing  in  the  construction of  much  needed  places  of  worship  in these  countries.   For  example,  it  is  anticipated  that
upwards of £400,000 worth of construction supplies will be donated to the Association of Jehovah's Witnesses in Liberia next year.

Watch Tower Bible and Tract Society of Britain

Report of the trustees

For the year ended 31

August 2007

Statement of trustees responsibilities

The trustees are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally
Accepted Accounting Practice.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to
prepare the financial statements in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of
affairs of the charitable company and of the surplus or deficit of the charitable company for that period. In preparing those financial
statements, the trustees are required to

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company
will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 1985.
They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the trustees are aware, there is no relevant information (as defined by Section 234ZA of the Companies Act 1985) of which
the  charitable  Society`s  auditors are  unaware,  and  each  trustee has  taken  all  the  steps  that  they  ought  to  have  taken  as  a  trustee  in
order  to  make  them  aware  of  any  audit  information  and  to  establish  that  the  charitable  Society`s  auditors  are  aware  of  that
information.

Auditors

The auditors, Calcutt Matthews, will be proposed for re-appointment in accordance with Section 385 of the Companies Act 1985.

On behalf of the board:

B Vigo
Trustee

Date: 16 January 2008

Watch Tower Bible and Tract Society of Britain

Report of the independent auditors to the members of
Watch Tower Bible and Tract Society of Britain

For the year ended 31

August 2007

We  have  audited  the  financial  statements  of  Watch  Tower  Bible  and  Tract  Society  of  Britain  for  the  year  ended  31  August  2007
which comprise the Statement of Financial Activities, the Balance Sheet, the Charity Cash Flow Statement and the notes 1 to 20 on
pages seven to fifteen.

This report is made solely to the Society's trustees, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit
work has been undertaken so that we might state to the Society's trustees those matters we are required to state to them in an auditors'
report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the Society and the Society's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors
The  trustees'  responsibilities  for  preparing  the  financial  statements  in  accordance  with  applicable  law  and  United  Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out on pages one to five.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International
Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view in accordance with the relevant financial
reporting framework and are properly prepared in accordance with the Companies Act 1985. We also report to you whether in our
opinion the information given in the Report of the Trustees is consistent with the financial statements.

In addition, we report to you if, in our opinion, the Society has not kept proper accounting records, if we have not received all the
information and explanations we require for our audit, or if information specified by law regarding trustees' remuneration and other
transactions is not disclosed.

We read the Report of the Trustees and consider the implications for our report if we become aware of any apparent misstatements
within it.

Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements.
It  also  includes  an  assessment  of  the  significant  estimates  and  judgements  made  by  the  trustees  in  the  preparation  of  the  financial
statements,  and  of  whether  the  accounting  policies  are  appropriate  to  the  Society’s  circumstances,  consistently  applied  and
adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us  with  sufficient  evidence  to  give  reasonable  assurance  that  the  financial  statements  are  free  from  material  misstatement,
whether caused by fraud or other irregularity or error.

In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion
In our opinion:

the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting
Practice, of the state of the Society’s affairs as at 31 August 2007 and of incoming resources and application of resources
including its income and expenditure for the year then ended;

the financial statements have been properly prepared in accordance with the Companies Act 1985; and

the information given in the Report of the Trustees is consistent with the financial statements.

Calcutt Matthews
Chartered Accountants and Registered Auditors
2nd Floor Cardine House
30 North Street
Ashford
Kent
TN24 8JR

Date: 17 January 2008

Watch Tower Bible and Tract Society of Britain

Statement of financial activities

For the year ended 31

August 2007

31.8.07

31.8.06

Unrestricted

Restricted

Total

Total

funds

funds

Notes

£'000

£'000

Incoming resources

Incoming resources from generated funds

Voluntary income

13,125

2,103

15,228

11,259

Activities for generating funds

9,204

7,487

Investment income

1,628

1,711

1,360

Total incoming resources

23,957

2,186

26,143

20,106

Resources expended

Costs of generating funds

Fundraising trading: cost of goods sold and other costs 5

11,521

10,916

Charitable activities

Promoting Christian Missionary work

659

271

930

770

Making donations to further religious education
overseas

5,386

900

6,286

5,313

Governance costs

Total resources expended

17,594

1,171

18,765

17,034

Net incoming resources

6,363

1,015

7,378

3,072

Other recognised gains/losses

Gains/losses on investment assets

(187)

(716)

Net movement in funds

6,176

1,015

7,191

2,356

Reconciliation of funds

Total funds brought forward

26,898

9,180

36,078

33,722

Total funds carried forward

33,074

10,195

43,269

36,078

Continuing operations

All incoming resources and resources expended arise from continuing activities.

None of the charity’s activities were acquired or discontinued during the current and previous years. All gains and losses recognised
in the year are included above. The surplus for the year for Companies Act purposes comprises the net incoming resources for the
year together with the realised gains on investments of £7,267,980 (2006: £2,589,728).

Watch Tower Bible and Tract Society of Britain

Balance sheet

For the year ended 31

August 2007

31.08.07

31.08.06

Unrestricted

Restricted

Total

Total

funds

funds

Notes

£'000

£'000

Fixed assets

Tangible assets

5,777

468

6,245

6,673

Investments

10,170

18,668

15,947

468

16,415

25,341

Current assets

Stocks

1,118

869

Debtors

1,054

3,287

4,341

5,235

Investments

35,116

6,439

41,555

27,682

Cash at bank

514

964

37,802

9,726

47,528

34,750

Creditors

Amounts falling due within one year

(15,375)

(15,374)

(14,339)

Net current assets

22,427

9,727

32,154

20,411

Total assets less current liabilities

38,374

10,195

48,569

45,752

Creditors

Amounts falling due after more than one year

(5,300)

(9,674)

Net assets

33,074

10,195

43,269

36,078

Funds

Unrestricted funds

33,074

26,898

Restricted funds

10,195

9,180

Total funds

43,269

36,078

The financial statements were approved by the Board of Trustees on 16 January 2008 and were signed on its behalf by:

P S Gillies
Trustee

B Vigo
Trustee

Watch Tower Bible and Tract Society of Britain

Cash flow statement

For the year ended 31

August 2007

2007

2006

Notes

£’000

Net cash inflow from operating activities

9,694

4,572

Returns on investments and servicing of finance

8,666

(1,700)

Capital expenditure & financial investment

(18,810)

(2,656)

(Decrease)/Increase in cash in the period

(450)

216

Reconciliation Of Net Cash Flow To

Movement In Net Funds

Movement In Net Funds In The Period

Net Funds At 1st September 2006

964

748

Net Funds At 31st August 2007

514

964

(Decrease)/Increase in cash in the period

(450)

216

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements

For the year ended 31

August 2007

Accounting policies

Accounting convention
The financial statements have been prepared under the historical cost convention, with the exception of investments which
are included at market value, and in accordance with applicable accounting standards the Companies Act 1985 and the
requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.

Donations receivable
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to
the income and the amount can be quantified with reasonable accuracy. No income is deferred. Donations are from the
public, congregations of Jehovah’s Witnesses and other connected charities.

Activities for generating funds
Income from literature arises from literature sold to International Bible Students Association (IBSA), a connected charity on
a cost basis in line with the charity’s objects.

Legacies
Legacies are recognised at the earlier of the date of notification or being received.

Resources expended
All  expenditure  is  accounted  for  on  an  accruals  basis  and  has  been  classified  under  the  headings  with  all  aggregate  costs
related  to  that  category.    Where  costs  cannot  be  directly  attributed  to  particular  headings  they  have  been  allocated  to
activities on a basis consistent with the use of resources.  The trustees are of the opinion that support costs are best allocated
to the cost of producing literature as a fund raising cost.

Cost of generating funds
This represents the cost of printing magazines, Bibles and other literature sold to IBSA.

Grant Making
Our  grant  making  policy  (donations)  is  as  follows.    From  time  to  time  the  charity  is  asked  by  the  Governing  Body  of
Jehovah's  Witnesses to consider helping Jehovah's  Witnesses in countries where  a need exists.   The charity  first considers
whether sufficient funds are available to proceed with the request from the Governing Body.  Grants payable are recognised
in the accounts at the date at which funds are approved by the trustees to be sent.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Items are
capitalised when their cost is greater than £1,000.

Land & Buildings

-2% on cost

Plant and machinery

-10% on cost

Motor vehicles

-25% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving
items.

Current Asset Investments

All investments are carried at market value and at the year end comprised cash, U.K. bonds and U.K. equities. The surplus
or deficit arising from revaluations is recognised through the SOFA.

Taxation
The charity is exempt from corporation tax on its charitable activities. The charity is registered for VAT.

Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when
specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Conditional Donations
The charity receives some donations where the donor reserves the right to receive the funds back. Experience has shown that
only a small percentage are returned, but prudently the charity provides for fifty percent.

Connected Charities
Transactions are on an arms length and accruals basis. Note 9 sets out the relationship with IBSA. Most other countries
have a branch office of Jehovah’s Witnesses.

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements - Continued

For the year ended 31

August 2007

Voluntary income

31.8.07

31.8.06

£'000

£'000

Donations of cash and goods

11,118

6,182

Donations of literature

1,576

1,318

Legacies

2,534

3,759

15,228

11,259

Donations of cash and goods in 2007 includes a loan from Spain branch office of Jehovah’s Witnesses that was converted to
a donation on the 31st December 2006.

Activities for generating funds

31.8.07

31.8.06

£'000

£'000

Income from literature donated overseas

2,710

1,906

Income from literature sold to IBSA

6,494

5,581

9,204

7,487

Investment income

31.8.07

31.8.06

£'000

£'000

Interest and dividends receivable

1,711

1,360

Fundraising trading: cost of goods sold and other costs

31.08.07

31.08.06

Direct costs

Support costs

Total costs

Total costs

£000

£000

Cost of producing literature

7,446

4,075

11,521

10,916

Support cost comprise accommodation charges and administration costs.

Charitable activities costs

31.08.07

31.08.06

£'000

£'000

Promoting Christian Missionary work

930

770

Making donations to further religious education overseas

6,286

5,313

7,216

6,083

Governance costs

31.8.07

31.8.06

£'000

£'000

Legal fees

Auditors' remuneration

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements - Continued

For the year ended 31

August 2007

Net incoming/(outgoing) resources

Net resources are stated after charging/(crediting):

31.8.07

31.8.06

£'000

£'000

Auditors' remuneration

Depreciation - owned assets

823

873

Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 August 2007 nor for the year ended
31 August 2006.

The trustees confirm that they have not been involved with any transactions of the charity. The Society has close connections
with International Bible Students Association charity number 216647 (IBSA)  which is a registered charity  and has similar
objects. This charity has the same registered office as that of the Society.

The  trustees  of  Watch  Tower  receive  no  payments  or  reimbursements  in  their  capacity  as  trustees.  The  trustees  are  also
volunteer workers at IBSA’s premises, they receive personal expense allowances of £82 per month and a personal expense
gift of £300 per year with free board and lodging as indeed do all volunteers.

Trustees' Expenses
There were no trustees' expenses paid for the year ended 31 August 2007 or for the year ended 31 August 2006.

10.

Tangible fixed assets

Land &

Buildings

Plant and

machinery

Motor vehicles

Totals

£'000

Cost

At 1 September 2006

286

8,717

1,680

10,683

Additions

154

409

563

Disposals

(68)

(449)

(517)

At 31 August 2007

286

8,803

1,640

10,729

Depreciation

At 1 September 2006

3,257

730

4,010

Charge for year

557

261

823

Eliminated on disposal

(57)

(292)

(349)

At 31 August 2007

3,757

699

4,484

Net book value

At 31 August 2007

258

5,046

941

6,245

At 31 August 2006

263

5,460

950

6,673

11.

Fixed asset investments

31.8.07

31.8.06

£'000

£'000

Loans to a connected charity - IBSA

10,170

18,668

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements - Continued

For the year ended 31

August 2007

11.

Fixed asset investments - continued

Loan to

connected

charity-IBSA

Totals

£'000

At 1 September 2006

18,668

Repayments in year

(8,498)

At 31 August 2007

10,170

There were no investment assets outside the UK.

The loan comprises monies advanced to a connected charity, IBSA, to assist in the purchase of buildings.  During the year
IBSA sold some of its buildings and therefore repaid part of this loan.

The trustees have made no interest charge to IBSA on the loan.  This is on the basis that both charities have similar objects
and the interest is to be treated as a donation to the charity.

12.

Stocks

31.8.07

31.8.06

£'000

£'000

Bibles and other literature

1,118

869

13.

Debtors: amounts falling due within one year

31.8.07

31.8.06

£'000

£'000

Trade debtors

Due from congregations

3,287

3,882

Other debtors

302

334

Due from connected charity

329

521

Due from overseas branches

156

156

Prepayments and accrued income

258

326

4,341

5,235

The £3,287,000 due from congregations (2006: £3,882,000) comprises £647,060 due in the next 12 months and £2,640,333
due after more than one year.

14.

Current asset investments

31.8.07

31.8.06

£'000

£'000

Bonds and cash

25,896

10,338

Equities

15,659

17,344

41,555

27,682

31.8.07

31.8.06

£'000

£'000

Historic cost

41,742

28,398

Unrealised loss

(187)

(716)

Market value 41,555

27,682

During the year the charity received investments from IBSA as payment to satisfy loans made by the charity. Title to these
investments has been transferred.

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements - Continued

For the year ended 31

August 2007

15.

Creditors: amounts falling due within one year

31.8.07

31.8.06

£'000

£'000

Trade creditors

256

253

Other creditors

297

277

Deposits

13,999

12,841

Conditional donations (note 19)

742

556

Due to connected charities

329

Accrued expenses

15,374

14,339

16.

Creditors: amounts falling due after more than one year

31.8.07

31.8.06

£'000

£'000

Deposits (see note 17)

5,300

9,674

17.

Loans

An analysis of the maturity of loans is given below:

31.8.07

31.8.06

£'000

£'000

Amounts falling between one and two years:

Loan from Spain branch office of Jehovah’s Witnesses

4,374

Deposits

5,300

5,300

5,300

9,674

The loan from Spain branch office of Jehovah’s Witnesses was cancelled on the 31st December 2006 and was converted to a
donation as recognised in note 2.

Deposits  comprise  monies  received  from  individuals  and  congregations  and  held  with  the  Society  until  they  have  a  need.
Deposits  due  after  more  than  one  year  comprise  deposits  where  the  lender  has  agreed  to  forego  the  right  to  receive  funds
back within 12 months.

18.

Movement in funds

At 1.9.06

Net movement

in funds

At 31.8.07

£'000

Unrestricted funds

General fund

26,898

6,176

33,074

Restricted funds

Travelling Overseers Assistance Arrangement

321

379

700

Kingdom Hall Assistance Arrangement

3,475

275

3,750

The Society Kingdom Hall Fund

5,172

427

5,599

Distress Relief Fund

212

(66)

146

9,180

1,015

10,195

Total funds

36,078

7,191

43,269

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements - Continued

For the year ended 31

August 2007

18.

Movement in funds - continued

Net movement in funds, included in the above are as follows:

Incoming

resources

Resources

expended

Gains and

losses

Movement in

funds

£'000

Unrestricted funds

General fund

23,957

(17,594)

(187)

6,176

Restricted funds

Travelling Overseers Assistance Arrangement

516

(137)

379

Kingdom Hall Assistance Arrangement

408

(133)

275

The Society Kingdom Hall Fund

1,237

(810)

427

Distress Relief Fund

(91)

(66)

2,186

(1,171)

1,015

Total funds

26,143

(18,765)

(187)

7,191

19.

Contingent liabilities

Note 15 includes creditors of £742,000 (2006: £556,000). This represents 50% of the value of deposits made by individuals
or  congregations  of  Jehovah’s  Witnesses  where  they  have  reserved  a  right  to  have  the  monies  returned  to  them  if  a  crisis
arises.  The reason that the charity only provides for 50% to be repayable is because in reality a very low percentage of funds
are  requested  back  -  in  recent  years  an  average  of  only  13%  has  been  requested  back.    The  trustees  acknowledge  that  in
theory, however, there is a contingent liability for the other 50% of conditional donations.

20.

Net cash inflow from operating activities

31.08.07

31.08.06

£000

£000

Net incoming resources and investment gains/(losses)

7,191

2,356

(Increase) in Stocks

(249)

(45)

Decrease in Debtors

894

249

Increase in Creditors

1,035

1,139

Depreciation

823

873

9,694

4,572

Watch Tower Bible and Tract Society of Britain

Report of the trustees

For the year ended 31

August 2008

The trustees who are also directors of the charity for the purposes of the Companies Act 1985, present their report with the financial
statements of the charity for the year ended 31 August 2008. The trustees have adopted the provisions of the Statement of
Recommended Practice (SORP) 'Accounting and Reporting by Charities' issued in March 2005.

Reference and administrative details

Registered Company number
3858051 (England and Wales)

Registered Charity number
1077961

Registered office
IBSA House
The Ridgeway
London
NW7 1RN

Trustees

R Drage

J Dowson

P Ellis

B Vigo

P S Gillies

Auditors
Calcutt Matthews
Chartered Accountants and Registered Auditors
2nd Floor Cardine House
30 North Street
Ashford
Kent
TN24 8JR

Bankers
Barclays Bank plc
PO Box 12820
London
BX3 2BB

Investment Advisers
Merrill Lynch International Bank Ltd
2 King Edward Street
London
EC1A 1HQ

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Structure, governance and management

Governing document
The charity is controlled by its governing document, the memorandum and articles of the company dated 25th October 1999.

Recruitment and appointment, induction and training of trustees
The  recruitment  and  induction of  new  trustees  is  arranged  as  follows:  On  an  annual  basis  the  trustees  review  potential  candidates.
These are required to be appointed as elders in congregations of Jehovah's Witnesses. Their abilities are evaluated by means of the
trustees'  personal  knowledge  of  the  candidates  or  by  a  "personal  qualifications  report"  provided  by  elders  with  knowledge  of  the
individuals. Trustees are given appropriate Charity Commission publications and training is arranged as part of the meetings of the
trustees when the charity's policies are discussed. This is supplemented by an annual training session provided by Calcutt Matthews.
Additionally, arrangements are made for new trustees to attend a comprehensive course that includes training in legal, organisational,
and financial matters.

The trustees of the charity also have key managerial roles at the charity headquarters. They meet several times each month, and are in
regular contact from day to day. Trustees are elected annually, by a simple majority of the members present at the AGM.

Watch Tower Bible and Tract Society of Britain

Report of the trustees

For the year ended 31

August 2008

Structure, governance and management

Organisational structure
The charity is a UK Company limited by guarantee.

The trustees organise the charity into a number of departments.  Each department has an experienced, trained overseer  who makes
regular reports to the trustees.

Wider network
Charities with similar objects exist in many countries around the world. Co-ordination is through the Governing Body of Jehovah's
Witnesses, located at their headquarters in the United States.

Related parties
Watch Tower Bible and Tract Society of Britain (the Society) works closely with International Bible Students Association (IBSA),
which  permits  the  Society  to  use  its  facilities  for  the  Society's  charitable  activities,  and  provides  accommodation  for  volunteers.
IBSA makes a monthly service and maintenance charge to the Society for the facilities it uses and for providing accommodation for
volunteers connected with the Society's activities. The Society passes to IBSA the cost incurred in printing and distributing the Bible-
based religious literature manufactured and delivered to destinations on its behalf, and all other overhead costs.

Risk management
The major risks to which the charity is exposed have been reviewed, with particular focus on events that would seriously impede the
operations of the charity. Strategies and safeguards are in place to reduce, as far as possible, the impact of those risks.  Serious risks
include catastrophic loss and failure of internal controls.

Objectives and activities

Objectives and aims
The objects of the Society, contained in its Memorandum and Governing document, are to advance the Christian religion as practiced
by the body of Christians known as Jehovah's Witnesses. This is accomplished by the following specific sub-objects:
a.  promoting  the  preaching  of  the  gospel  of  God's  Kingdom  under  Jesus  Christ  in  all  nations  as  a  witness  to  the  name,  word  and
supremacy of the Almighty God, JEHOVAH;
b. producing and distributing Bibles and other religious literature, in any medium, and educating the public in respect thereof;
c. promoting religious worship;
d. promoting Christian missionary work;
e. advancing religious education;
f. maintaining one or more religious orders or communities of special ministers of Jehovah's Witnesses.

The major areas of activities for the year in question have been:
1. printing and distributing Bibles and Bible-based literature in several languages, which has served to advance religious education
and educate the general public in spiritual and moral values.
2. supporting congregations of Jehovah's Witnesses and others in Britain with their spiritual and material welfare, by advancing the
Christian missionary work, which has promoted religious worship in local communities.
3.  supporting  congregations  of  Jehovah's  Witnesses  and  others  abroad,  primarily  in  developing  countries,  with  their  spiritual  and
material  welfare,  by  making  donations  to  local  associations  of  Jehovah's  Witnesses.  The  donations  have  been  in  the  form  of
literature, goods, and services, as  well as of  funding for the construction of places of  worship.   All such donations have promoted
religious education overseas.

Grantmaking
The  charity's  grant  making  policy  is  as  follows:  From  time  to  time  the  charity  is  asked  by  the  Governing  Body  of  Jehovah's
Witnesses  to  consider  helping  Jehovah's  Witnesses  in  countries  where  a  need  exists.    The  charity  first  satisfies  itself  that  the
expenditure  will  further  the  religious  work  of  Jehovah's  Witnesses,  and  after  confirming  that  sufficient  funds  are  available,  it  then
sends  the  money  to  the  organisation  caring  for  Jehovah's  Witnesses  in  that  country.  Finally,  reports  are  obtained  to  confirm  the
money was properly used.

Volunteers
The charity is run entirely by volunteers kindly provided by IBSA.

Watch Tower Bible and Tract Society of Britain

Report of the trustees

For the year ended 31

August 2008

Achievement and performance

Charitable activities - Producing and distributing Bible literature
The charity's rotary presses have continued to produce The Watchtower and Awake! magazines, as well as other items of Bible-based
literature.  In  the  year,  300  million  publications  were  printed.  These  included  130  million  copies  of  The  Watchtower  and  Awake!
magazines,  which  were  printed  in  30  and  12  languages  respectively.  In  total,  the  charity  has  sent  Bible-based  literature  to  69
countries in 72 languages. Machines run at approximately 80% capacity. A Heidelberg Saddle Stitcher was purchased this year at a
cost of £45,000 as a replacement for the previous stitcher that could no longer be repaired. All of the literature produced is used to
advance religious education and educate the general public in spiritual and moral values.

With increasing awareness of local and global environmental issues the charity has been taking steps to improve the sustainability of
its operations. As a result in July 2008 the charity was granted the "EcoStep Award--for environmental commitment" which offers
recognition for organisations improving their environmental performance.

Charitable activities - Promoting Christian Missionary work
In assisting congregations of Jehovah's Witnesses and others in Britain with their spiritual and material welfare, the charity supports
over 80 travelling ministers. These visit the congregations on a regular basis, usually twice a year, during which they provide pastoral
care.  One  of  the  primary  objectives  of  these  visits  is  for  the  travelling  minister  to  promote  the  Christian  missionary  work  by
providing  leadership  in  the  public  ministry  of  Jehovah's  Witnesses.  Additionally,  the  charity  supports  over  130  full-time  ministers
who  assist  congregations  to  which  the  charity  has  assigned  them.  The  assistance  provided  by  these  ministers  enables  local
congregations  of  Jehovah's  Witnesses  to  share  fully  in  promoting  and  preaching  the  good  news  of  God's  Kingdom  and  teaching
principles  of  Christian  living.  Such  principles  include  respect  for  secular  authority,  persons,  and  property,  and  the  maintenance  of
personal morality and family values and other facets of Christianity.

The  charity  also  runs  a  training  school  for  qualified  ministers  to  better  equip  them  to  render  spiritual  and  pastoral  care  in  the
community.  This  school,  the  Ministerial  Training  School,  gives  instruction  in  Bible  teachings  and  in  organisational  matters.  As  a
result  of  such  training,  some  are  assigned  to  serve  where  there  is  a  need  for  ministers  here  in  Britain,  whereas  others  receive
assignments in foreign countries. During the year there were two classes held from which 47 students graduated, bringing to 800 the
number who have graduated since the school was inaugurated.

Charitable activities - Making donations to further religious education overseas
During the year the charity continued to support the construction of places of worship in Africa and areas of Asia through making
grants totalling over £900,000. The completed places of worship will be centres for both local congregations of Jehovah's Witnesses
and members of the local community who wish to benefit from the practical values contained in the Holy Bible, which promotes both
the moral and spiritual edification of mankind.

The charity also provided material and financial assistance to Associations of Jehovah's Witnesses in several developing countries,
who are responsible for the general oversight of the activities of Jehovah's Witnesses in that country. The funds, over £3,400,000 in
total,  were  given  to  promote  missionary  activity,  to  support  general  oversight  costs  of  the  local  Association,  and  to  assist  in  the
operation  of  local  congregations  of  Jehovah's  Witnesses.  Additionally,  literature  with  a  value  of  over  £3,200,000  was  donated
overseas, mainly to Africa, for use in advancing religious education.

Humanitarian aid of more than £75,000 was provided by the charity to those in need. This included funds to assist those affected by
natural disasters in Myanmar. Clearly, much has been accomplished by the charity in the year to advance its objects. The activities
confirm that the work of the charity continues to benefit both Jehovah's Witnesses and members of the community.

Internal controls
To  ensure  the  charity  is  able  to  achieve  its  objectives,  appropriate  internal  controls  have  been  established.  These  ensure  that  the
monthly  financial  reports  accurately  represent  all  transactions,  provide  reasonable  assurance  that  finances  are  being  used  for  their
intended purpose, and verify that proper controls and procedures are in place, and adhered to, so that figures are recorded accurately
and the accounts are in balance.

The internal audit programme has been achieved. The internal auditor and his assistant, both drawn from the volunteer work force,
have a set agenda to pursue throughout the year, and reported in writing to the trustees in October 2008. Approved recommendations
were implemented.

Financial review

Watch Tower Bible and Tract Society of Britain

Report of the trustees

For the year ended 31

August 2008

Financial review

Investment policy and objectives
In harmony with paragraphs 4.18 and 4.19 of the Memorandum and Articles, which give power to invest funds in any lawful manner
having full regard to the suitability of the investments and the need for diversification, investments are selected with consideration
for Christian principles. The objective is to preserve capital and achieve a real return of 4% plus inflation. The value of the portfolio
increased  by  7.31%  achieving  a  return  over  inflation  on  August  31,  2008  of  1.81%.  The  global  financial  problems  over  the  past
twelve months are well documented, and the foresight of the trustees to diversify the portfolio into several asset classes globally has
contributed towards a positive return for the year. The return compares favourably with the market in general.

Since  the  end  of  the  financial  year,  global  financial  markets  continue  to  be  volatile  prompting  intervention  on  a  global  scale  by
national  governments.  To  protect  the  value  of  the  portfolio  we  continue  to  increase  our  cash  holdings  ensuring  that  these  are  in
appropriately diversified high credit quality instruments.

Ex-gratia payments
During  the  year  the  Charity  Commission  approved  an  ex-gratia  payment  of  £10,000.    The  details  are  explained  in  note  9  to  the
accounts.

Future developments

The  charity  anticipates  being  able  to  continue  to  have  a  full  share  in  funding  the  activities  of  Jehovah's  Witnesses  in  developing
countries  and  sharing  in  the  construction  of  much  needed  places  of  worship  in  these  countries.  For  example,  it  is  anticipated  that
upwards of £2,000,000 in funds, along with construction supplies, will be donated to assist with the expansion of the administrative
facilities of Jehovah's Witnesses in Nigeria next year.

Statement of trustees’ responsibilities

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company
will continue in business.

Statement as to disclosure of information to auditors

So far as the trustees are aware, there is no relevant information (as defined by Section 234ZA of the Companies Act 1985) of which
the charitable company’s auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in
order to make them aware of any audit information and to establish that the charitable company’s auditors are aware of that
information.

On behalf of the board:

R Drage
Trustee

Date: 21 January 2009

Watch Tower Bible and Tract Society of Britain

Report of the independent auditors to the members of
Watch Tower Bible and Tract Society of Britain

For the year ended 31

August 2008

We have audited the financial statements of Watch Tower Bible and Tract Society of Britain for the year ended 31 August 2008 on
pages six to sixteen.  These financial statements have been prepared under the accounting policies set out therein.

This report is made solely to the charitable company's  members,  as a body, in accordance with Section 235 of the Companies Act
1985. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to
state  to  them  in  an  auditors'  report  and  for  no  other  purpose.  To  the  fullest  extent  permitted  by  law,  we  do  not  accept  or  assume
responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for
this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors
The  trustees'  responsibilities  for  preparing  the  financial  statements  in  accordance  with  applicable  law  and  United  Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out on page four.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International
Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance
with the Companies Act 1985. We also report to you whether in our opinion the information given in the Report of the Trustees is
consistent with the financial statements.

In  addition,  we  report  to  you  if,  in  our  opinion,  the  charitable  company  has  not  kept  proper  accounting  records,  if  we  have  not
received  all  the  information  and  explanations  we  require  for  our  audit,  or  if  information  specified  by  law  regarding  trustees'
remuneration and other transactions is not disclosed.

We read the Report of the Trustees and consider the implications for our report if we become aware of any apparent misstatements
within it.

Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements.
It  also  includes  an  assessment  of  the  significant  estimates  and  judgements  made  by  the  trustees  in  the  preparation of  the  financial
statements,  and  of  whether  the  accounting  policies  are  appropriate  to  the  charitable  company's  circumstances,  consistently  applied
and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us  with  sufficient  evidence  to  give  reasonable  assurance  that  the  financial  statements  are  free  from  material  misstatement,
whether  caused  by  fraud  or  other  irregularity  or  error.    In  forming  our  opinion  we  also  evaluated  the  overall  adequacy  of  the
presentation of information in the financial statements.

Opinion
In our opinion:

the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting
Practice, of the state of the charitable company's affairs as at 31 August 2008 and of its incoming resources and application
of resources, including its income and expenditure for the year then ended;

the financial statements have been properly prepared in accordance with the Companies Act 1985; and

the information given in the Report of the Trustees is consistent with the financial statements.

Calcutt Matthews

Calcutt Matthews
Chartered Accountants and Registered Auditors
2nd Floor Cardine House
30 North Street
Ashford
Kent
TN24 8JR

Date: 22 January 2009

Watch Tower Bible and Tract Society of Britain

Statement of financial activities

For the year ended 31

August 2008

31.8.08

31.8.07

Unrestricted

Restricted

Total

funds

as restated

Notes

£'000

Incoming resources

Incoming resources from generated funds

Voluntary income

9,615

1,811

11,426

15,228

Investment income

2,041

113

2,154

1,711

Incoming resources from charitable activities

Producing and distributing Bible literature

10,004

9,204

Total incoming resources

21,660

1,924

23,584

26,143

Resources expended

Charitable activities

Producing and distributing Bible literature

12,173

11,521

Promoting Christian missionary work

566

298

864

930

Making donations to further religious education
overseas

6,690

982

7,672

6,286

Governance costs

Total resources expended

19,454

1,280

20,734

18,765

Net incoming resources

2,206

644

2,850

7,378

Other recognised gains/losses

Gains/(losses) on investment assets

1,020

(187)

Net movement in funds

3,226

644

3,870

7,191

Reconciliation of funds

Total funds brought forward

33,074

10,195

43,269

36,078

Total funds carried forward

36,300

10,839

47,139

43,269

Continuing operations

Watch Tower Bible and Tract Society of Britain

Balance sheet

For the year ended 31

August 2008

31.8.08

31.8.07

Unrestricted

Restricted

Total

funds

as restated

Notes

£'000

Fixed assets

Tangible assets

5,470

675

6,145

6,245

Investments

26,028

25,829

31,498

675

32,173

32,074

Current assets

Stocks

982

1,118

Debtors: amounts falling due within one year

930

3,229

4,159

4,341

Investments

24,644

6,935

31,579

25,896

Cash at bank

1,339

514

27,895

10,164

38,059

31,869

Creditors

Amounts falling due within one year

(16,789)

(15,374)

Net current assets

11,106

10,164

21,270

16,495

Total assets less current liabilities

42,604

10,839

53,443

48,569

Creditors

Amounts falling due after more than one year

(6,304)

(5,300)

Net assets

36,300

10,839

47,139

43,269

Funds

Unrestricted funds

36,300

33,074

Restricted funds

10,839

10,195

Total funds

47,139

43,269

The financial statements were approved by the Board of Trustees on 21 January 2009 and were signed on its behalf by:

P Ellis
Trustee

B Vigo
Trustee

Watch Tower Bible and Tract Society of Britain

Cash flow statement

For the year ended 31

August 2008

31.8.08

31.8.07

as restated

Notes

£'000

Net cash (outflow)/inflow from operating activities

(1,377)

7,347

Returns on investments and servicing of finance

2,154

1,711

Capital expenditure and financial investment

(9,508)

Increase/(decrease) in cash in the period

825

(450)

Reconciliation of net cash flow to movement in net
debt

Increase/(decrease) in cash in the period

825

(450)

Cash (outflow)/inflow from increase/(decrease) in liquid
resources

5,683

(1,786)

Cash inflow/(outflow) from increase/(decrease) in debt
and lease financing

(1,004)

4,374

Change in net debt resulting from cash flows

5,504

2,138

Movement in net debt in the period

5,504

2,138

Net debt at 1 September

21,110

18,972

Net debt at 31 August

26,614

21,110

Watch Tower Bible and Tract Society of Britain

Notes to the cash flow statement

For the year ended 31

August 2008

Reconciliation of net incoming resources to net cash (outflow)/inflow from operating activities

31.8.08

31.8.07

as restated

£'000

Net incoming resources

2,850

7,378

Depreciation charges

873

823

Interest received

(2,154)

(1,711)

(Increase) in current asset investments

(5,683)

Decrease/(increase) in stocks

136

(249)

Decrease in debtors

182

894

Increase in creditors

2,419

212

Net cash (outflow)/inflow from operating activities

(1,377)

7,347

Analysis of cash flows for headings netted in the cash flow statement

31.8.08

31.8.07

as restated

£'000

Returns on investments and servicing of finance

Interest received

2,154

1,711

Net cash inflow for returns on investments and servicing of finance

2,154

1,711

Capital expenditure and financial investment

Purchase of tangible fixed assets

(987)

(563)

Purchase of fixed asset investments

(199)

(15,659)

Sale of tangible fixed assets

214

168

Sale of investment property

1,020

6,546

Net cash inflow/(outflow) for capital expenditure and financial
investment

(9,508)

Analysis of changes in net debt

At 1.9.07

Cash flow

At 31.8.08

£'000

Net cash:

Cash at bank

514

825

1,339

Liquid resources:

Current asset investments

25,896

5,683

31,579

Debt:

Debts falling due after one year

(5,300)

(1,004)

(6,304)

Total

21,110

5,504

26,614

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements

For the year ended 31

August 2008

Accounting policies

Donations receivable
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to
the income and the amount can be quantified with reasonable accuracy. No income is deferred. Donations are from the
public, congregations and other connected charities.

Income from Bible Literature
Income from literature arises from literature sold to International Bible Students Association (IBSA), a connected charity on
a cost basis in line with the charity’s objects.

Legacies
Legacies are recognised at the earlier of the date of notification or being received.

Tangible fixed assets
Fixed assets are valued at cost less depreciation. Depreciation is provided at the following annual rates in order to write off
each asset over its estimated useful life.

Land & Buildings

-2% on cost

Plant and machinery

-10% on cost

Motor vehicles

-25% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving
items.

Investments
Investments are valued at Market Value. All investments listed on a recognised Stock Exchange are carried at this value.
Unlisted investments are valued using the latest valuation information received.

Taxation
The charity is exempt from corporation tax on its charitable activities.

Deposits from congregations
One  third  of  the  deposits  are  classified  in  creditors  due  after  more  than  one  year.    Experience  shows  that  only  a  small
percentage  of  deposits  will  be  called  upon  in  any  one  year.    The  trustees  therefore  feel  it  appropriate  to  re-classify  this
percentage as falling due after more than one year.

Conditional Donations
The charity receives some donations where the donor reserves the right to receive the funds back. Experience has shown that
only a small percentage is returned, but prudently the charity provides for fifty percent.

Connected Charities
Transactions are on an arms length and accruals basis.  Note 22 sets out the relationship with IBSA.  Most other countries
have a branch office of Jehovah’s Witnesses.

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements

For the year ended 31

August 2008

Voluntary income

31.8.08

31.8.07

£'000

Donations of cash and goods

6,752

11,118

Donations of literature

1,862

1,576

Legacies

2,812

2,534

11,426

15,228

Donations of cash and goods in 2007 includes a loan from Spain that was converted to a donation on the 31st December
2006.

Investment income

31.8.08

31.8.07

£'000

Interest

2,048

1,645

UK Dividends

106

2,154

1,711

Incoming resources from charitable activities

31.8.08

31.8.07

as restated

Activity

£'000

Income from literature donated
overseas

Producing and distributing Bible
literature

3,091

2,710

Income from literature sold to
IBSA

Producing and distributing Bible
literature

6,913

6,494

10,004

9,204

Charitable activities costs

Direct costs

Support costs

Totals

£'000

Producing and distributing Bible literature

8,232

3,941

12,173

Promoting Christian missionary work

864

Making donations to further religious education overseas

7,672

16,768

3,941

20,709

Support costs of £3,941,000 (2007: £4,075,000) have been allocated to producing and distributing Bible literature.

Governance costs

31.8.08

31.8.07

£'000

Legal fees

Auditors' remuneration

Other services provided by the external auditors

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements

For the year ended 31

August 2008

Net incoming/(outgoing) resources

Net resources are stated after charging/(crediting):

31.8.08

31.8.07

as restated

£'000

Auditors' remuneration
Other services provided by external auditors

5
4

Depreciation

873

823

Trustees’ remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 August 2008 nor for the year ended
31 August 2007.

The trustees confirm that they have not been involved with any transactions of the charity.

The  trustees  of  Watch  Tower  receive  no  payments  or  reimbursements  in  their  capacity  as  trustees.  The  trustees  are  also
volunteer workers at IBSA’s premises, they receive personal expense allowances of £82 per month and a personal expense
gift of £300 per year with free board and lodging as indeed do all volunteers.

Trustees' Expenses
There were no trustees' expenses paid for the year ended 31 August 2008 nor for the year ended 31 August 2007.

Ex-gratia payments

In the estate of Ada White deceased, the trustees requested approval in extended correspondence with the Charity
Commission to make an ex-gratia payment of £10,000, and this was approved in a sealed Order from the Commission dated
December 3, 2007, under case ref. 596634 and sealing No. 374/2007.

10.

Prior year adjustment

Producing and distributing Bible literature
The  2007  accounts  showed  these  under  'fundraising  trading'.    The  trustees  believe  these  should  be  correctly  reclassified
under charitable expenditure in 2008.  The comparative figures have also been amended.

Classification of Investments
The charity has built up a portfolio of current asset investments to meet the liability to repay deposits that congregations have
lodged with the charity. During the year the trustees have set up an investment team with a view to holding investments to
generate  funds longer term  and the holding of fixed rate securities and equity investments have been re-classified as  fixed
asset  investments  designed  to  yield  returns  to  fund  charitable  activities.  The  corresponding  amounts  for  fixed  rate
investments and equities held at 31 August 2007 have also been amended

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements

For the year ended 31

August 2008

11.

Tangible fixed assets

Land &

Buildings

Plant and

machinery

Motor vehicles

Totals

£'000

Cost

At 1 September 2007

286

8,803

1,640

10,729

Additions

252

735

987

Disposals

(143)

(559)

(702)

At 31 August 2008

286

8,912

1,816

11,014

Depreciation

At 1 September 2007

3,757

699

4,484

Charge for year

584

283

873

Eliminated on disposal

(118)

(370)

(488)

At 31 August 2008

4,223

612

4,869

Net book value

At 31 August 2008

252

4,689

1,204

6,145

At 31 August 2007

258

5,046

941

6,245

12.

Fixed asset investments

31.8.08

31.8.07

as restated

£'000

a. Loan to connected charity - IBSA

10,170

b. UK and overseas investments at market value

15,858

15,659

26,028

25,829

a. Loan to connected charity - IBSA
The loan comprises monies advanced to a connected charity, IBSA, to assist in the purchase of buildings.

The trustees have made no interest charge to IBSA on the loan. This is on the basis that both charities have similar objects.

In October 2008 the charity received a loan repayment of £2 million.

b. UK and overseas investments at market value:

Overseas

Fixed Rate

Securities

Equity & Other

Securities

Fixed Rate

Securities

Equity & Other

Securities

Totals

£'000

Market value at September 2007

6,621

553

5,040

3,445

15,659

Acquired

6,165

20,105

26,270

Sale Proceeds

(2,161)

(5,386)

(1,099)

(16,823)

(25,469)

Net investment gains/(losses)

(43)

(171)

417

(805)

(602)

Market value at 31 August 2008

4,417

1,161

4,358

5,922

15,858

Equity investments are valued at £1,160,875 at 31 August 2008 (£553,180 at 31 August 2007)

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements

For the year ended 31

August 2008

13.

Stocks

31.8.08

31.8.07

£'000

Bibles and other literature

982

1,118

14.

Debtors: amounts falling due within one year

31.8.08

31.8.07

£'000

Trade debtors

Due from congregations

3,229

3,287

Other debtors

311

302

Due from connected charity

278

329

Due from overseas branches

156

Prepayments and accrued income

169

258

4,159

4,341

The £3,229,000 due from congregations (2007: £3,287,000) comprises £531,000 due in the next 12 months and £2,698,000
due after more than one year.

15.

Current asset investments

Short term

Deposits

£'000

Market value at 1 September 2007 as restated

25,896

Acquired - new cash accounts

14,754

- interest received

1,052

15,806

Disposals

(10,123)

Market value at 31 August 2008

31,579

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements

For the year ended 31

August 2008

16.

Creditors: amounts falling due within one year

31.8.08

31.8.07

£'000

Trade creditors

237

256

Other creditors

307

297

Deposits

15,195

13,999

Conditional donations

820

742

Accrued expenses

230

16,789

15,374

17.

Creditors: amounts falling due after more than one year

31.8.08

31.8.07

£'000

Deposits (see note 18)

6,304

5,300

18.

Loans

An analysis of the maturity of loans is given below:

31.8.08

31.8.07

£'000

Amounts falling between one and two years:

Deposits

6,304

5,300

Deposits comprise monies received from individuals and congregations and held with the Society until they have a need.

19.

Movement in funds

At 1.9.07

Net movement

in funds

At 31.8.08

£'000

Unrestricted funds

General fund

33,074

3,226

36,300

Restricted funds

Travelling Overseers Assistance Arrangement

700

(116)

584

Kingdom Hall Assistance Arrangement

3,750

341

4,091

The Society Kingdom Hall Fund

5,599

329

5,928

Relief Fund

146

(46)

100

Missionary Convention Travel

136

10,195

644

10,839

Total funds

43,269

3,870

47,139

Watch Tower Bible and Tract Society of Britain

Notes to the financial statements

For the year ended 31

August 2008

19.

Movement in funds - continued

Net movement in funds, included in the above are as follows:

Incoming

resources

Resources

expended

Gains and

losses

Movement in

funds

£'000

Unrestricted funds

General fund

21,660

(19,454)

1,020

3,226

Restricted funds

Travelling Overseers Assistance Arrangement

116

(232)

(116)

Kingdom Hall Assistance Arrangement

407

(66)

341

The Society Kingdom Hall Fund

1,234

(905)

329

Relief Fund

(77)

(46)

Missionary Convention Travel

136

1,924

(1,280)

644

Total funds

23,584

(20,734)

1,020

3,870

20.

Contingent liabilities

Note 16 includes creditors of £820,000 (2007: £742,000) this represents 50% of the value of deposits made by individuals or
congregations where they have reserved a right to have the monies returned to them if a crisis arises.  The reason that the
charity only provides for 50% to be repayable is because in reality  a very low percentage of  funds are requested back - in
2007 and 2008 an average of £9,000 only has been requested back. The trustees acknowledge that in theory, however, there
is a contingent liability for the other 50% of conditional donations.

21.

Post balance sheet events

The trustees are pleased to be able to report that at the date of approving the accounts, none of the bank accounts in which
the charity's investments are held have been lost. The trustees are very much aware of the global financial crisis and have
made an assessment of the charity's current exposure. The trustees believe that the charity will be able to continue to carry
out its current projects and meet its obligations in the light of the assessment it has made.

22.

Related parties

The charity has close connections with IBSA, which provides accommodation for volunteers of Watch Tower and which is a
registered charity with similar objects. IBSA also has the same registered office as that of Watch Tower.

Watch Tower Bible and Tract Society of Britain
Trustees’ Report

For the Year Ended 31

August 2009

Structure, governance and management

Organisational structure
The charity is a UK company limited by guarantee.

The  trustees  organise  the  charity  into  a number  of  departments.  Each  department  has  an  experienced,  trained  overseer  who  makes
regular reports to the trustees.

Wider network
Charities with similar objects exist in many countries around the world. Co-ordination is through the Governing Body of Jehovah’s
Witnesses, located at their headquarters in the United States.

Related parties
Watch Tower Bible and Tract Society of Britain (the Society) works closely with International Bible Students Association (IBSA),
which  permits  the  Society  to  use  its  facilities  for  the  Society’s  charitable  activities,  and  provides  accommodation  for  volunteers.
IBSA makes a monthly service and maintenance charge to the Society for the facilities it uses and for providing accommodation for
volunteers  connected  with  the  Society’s  activities.  The  Society  passes  to  IBSA  the  cost  incurred  in  printing  and  distributing  the
Bible-based religious literature manufactured and delivered to destinations on its behalf, and all other overhead costs.

Risk management
The major risks to which the charity is exposed have been reviewed, with particular focus on events that would seriously impede the
operations of the charity. Serious risks include catastrophic loss and failure of internal controls. Strategies and safeguards are in place
to reduce, as far as possible, the impact of those risks.

Objectives and activities

Objectives and aims
The objects of the Society, contained in its Memorandum and Governing document, are to advance the Christian religion as practiced
by the body of Christians known as Jehovah’s Witnesses. This is accomplished by the following specific sub-objects:
a.  promoting  the  preaching  of  the  gospel  of  God’s  Kingdom  under  Jesus  Christ  in  all  nations  as  a  witness  to  the  name,  word  and
supremacy of the Almighty God, JEHOVAH;
b. producing and distributing Bibles and other religious literature, in any medium, and educating the public in respect thereof;
c. promoting religious worship;
d. promoting Christian missionary work;
e. advancing religious education;
f. maintaining one or more religious orders or communities of special ministers of Jehovah’s Witnesses.

The major areas of activities for the year in question have been:
1. printing and distributing Bibles and Bible-based literature in several languages, which has served to advance religious education
and educate the general public in spiritual and moral values.
2. supporting congregations of Jehovah’s Witnesses and others in Britain with their spiritual and material welfare, by advancing the
Christian missionary work, which has promoted religious worship in local communities.
3.  supporting  congregations  of  Jehovah’s  Witnesses  and  others  abroad,  primarily  in  developing  countries,  with  their  spiritual  and
material  welfare,  by  making  donations  to  local  associations  of  Jehovah’s  Witnesses.  The  donations  have  been  in  the  form  of
literature,  goods,  and  services,  as  well  as  of  funding  for  the  construction  of  places  of  worship.  All  such  donations  have  promoted
religious education overseas.

Grantmaking
The  charity’s  grant  making  policy  is  as  follows:  From  time  to  time  the  charity  is  asked  by  the  Governing  Body  of  Jehovah’s
Witnesses  to  consider  helping  Jehovah’s  Witnesses  in  countries  where  a  need  exists.  The  charity  first  satisfies  itself  that  the
expenditure will further the religious work of  Jehovah’s Witnesses, and after  confirming that sufficient funds are available, it then
sends  the  money  to  the  organisation  caring  for  Jehovah’s  Witnesses  in  that  country.  Finally,  reports  are  obtained  to  confirm  the
money was properly used.

Volunteers
The charity is run entirely by volunteers kindly provided by IBSA.

Programme related investments
Note 12 to the financial statements explains that at 31 August 2009, £14.3m (2008 £13.4m) had been lent to a connected charity and
to congregations of Jehovah’s Witnesses in Britain. These interest free loans have been advanced because the objects these charities
are supporting accord with the objects of the Society, as shown above.

Watch Tower Bible and Tract Society of Britain
Trustees’ Report

For the Year Ended 31

August 2009

Achievement and performance

Charitable activities - Producing and distributing Bible literature
The charity’s rotary presses have continued to produce The Watchtower and Awake! magazines, as well as other items of Bible-based
literature.  In  the  year,  300  million  publications  were  printed.  These  included  130  million  copies  of  The  Watchtower  and  Awake!
magazines,  which  were  printed  in  33  and  11  languages  respectively.  In  total,  the  charity  has  sent  Bible-based  literature  to  80
countries in 96 languages. There has recently been a 24% increase in production, which has made it necessary to run partial double
shifts.  All  of  the  literature  produced  is  used  to  advance  religious  education  and  educate  the  general  public  in  spiritual  and  moral
values.

Charitable activities - Promoting Christian Missionary work
In assisting congregations of Jehovah’s Witnesses and others in Britain with their spiritual and material welfare, the charity supports
over 80 travelling ministers. These visit the congregations on a regular basis, usually twice a year, during which they provide pastoral
care.  One  of  the  primary  objectives  of  these  visits  is  for  the  travelling  minister  to  promote  the  Christian  missionary  work  by
providing leadership in the public  ministry of Jehovah’s Witnesses.  Additionally, the charity supports over 140 full-time  ministers
who  assist  congregations  to  which  the  charity  has  assigned  them.  The  assistance  provided  by  these  ministers  enables  local
congregations  of  Jehovah’s  Witnesses  to  share  fully  in  promoting  and  preaching  the  good  news  of  God’s  Kingdom  and  teaching
principles  of  Christian  living.  Such  principles  include  respect  for  secular  authority,  persons,  and  property,  and  the  maintenance  of
personal morality and family values and other facets of Christianity.

The  charity  also  runs  a  training  school  for  qualified  ministers  to  better  equip  them  to  render  spiritual  and  pastoral  care  in  the
community.  This  school,  the  Ministerial  Training  School,  gives  instruction  in  Bible  teachings  and  in  organisational  matters.  As  a
result  of  such  training,  some  are  assigned  to  serve  where  there  is  a  need  for  ministers  here  in  Britain,  whereas  others  receive
assignments in foreign countries. During the year there were three classes held from which 67 students graduated, bringing to 867 the
number who have graduated since the school was inaugurated.

Charitable activities - Making donations to further religious education overseas
During the year the charity continued to support the construction of places of worship in Africa, Asia, and Europe through making
grants totalling over £520,000. The completed places of worship will be centres for both local congregations of Jehovah’s Witnesses
and members of the local community who wish to benefit from the practical values contained in the Holy Bible, which promotes both
the moral and spiritual edification of mankind.

The charity also provided material and financial assistance to Associations of Jehovah’s Witnesses in several developing countries,
who are responsible for the general oversight of the activities of Jehovah’s Witnesses in that country. The funds, over £4,700,000 in
total,  were  given  to  promote  missionary  activity,  to  support  general  oversight  costs  of  the  local  Association,  and  to  assist  in  the
operation  of  local  congregations  of  Jehovah’s  Witnesses.  Additionally,  literature  with  a  value  of  over  £3,900,000  was  donated
overseas, mainly to Africa, for use in advancing religious education.

Public benefit
As evidenced above, much has been accomplished by the charity in the year to advance its objects for the public benefit. Literature
has  been  produced  to  educate  the  general  public  in  spiritual  and  moral  values.  Ministers  have  been  supported  in  aiding  others  to
develop personal morality and family values. Places of worship have been financed which are open to all who wish to benefit from
the  practical  values  contained  in  the  Holy  Bible.  These  activities  bear  out  that  the  work  of  the  charity  continues  to  benefit  both
Jehovah’s  Witnesses  and  members  of  the  community.  The  trustees  confirm  that  they  have  taken  into  consideration  Charity
Commission guidance on public benefit in exercising their powers or duties.

Internal controls
To  ensure  the  charity  is  able  to  achieve  its  objectives,  appropriate  internal  controls  have  been  established.  These  ensure  that  the
monthly  financial  reports  accurately  represent  all  transactions,  provide  reasonable  assurance  that  finances  are  being  used  for  their
intended purpose, and verify that proper controls and procedures are in place, and adhered to, so that figures are recorded accurately
and the accounts are in balance.

The internal audit programme has been achieved. The internal auditor and his assistant, both drawn from the volunteer work force,
have a set agenda to pursue throughout the year, and reported in writing to the trustees in October 2009. Approved recommendations
were implemented.

Financial review

Impact of increase in work
As explained above under the heading ‘Charitable activities – Producing and distributing Bible literature,’ the charity’s workload has
recently  increased  by  24%.  The  trustees  have  considered  the  financial  and  non-financial  impact  of  this  increase,  and  have  taken
appropriate action to ensure the charity can continue to operate successfully.

Reserves policy
In  light  of  recent  economic  conditions,  the  trustees  have  reviewed  the  reserves  policy  and  have  increased  the  required  level  of
reserves  to  be  held  from  the  equivalent  of  3  months  expenditure  to  6  months  expenditure.  At  the  year-end,  reserves  stood  at
£19,776,000, which represented 11 months of expenditure (2008: £20,661,000 and 12 months).

Watch Tower Bible and Tract Society of Britain
Trustees’ Report

For the Year Ended 31

August 2009

Principal funding sources
The primary funding activity is the manufacture and distribution of Bible-based religious literature on behalf of IBSA, the cost of
which is passed on. The charity also relies to a large extent on voluntary donations to support its work, and has a consistent income
base through Gift Aid. In addition, the charity has an active treasury management department to handle investments it has been
bequeathed or converted.

Future developments

The  charity  anticipates  being  able  to  continue  to  have  a  full  share  in  funding  the  activities  of  Jehovah’s  Witnesses  in  developing
countries  and  sharing  in  the  construction  of  much  needed  places  of  worship  in  these  countries.  For  example,  it  is  anticipated  that
upwards of £2,000,000 in funds, along with construction supplies, will be donated to assist with the expansion of the administrative
facilities  of  Jehovah’s  Witnesses  in  Nigeria  next  year.  Also,  the  charity  is  now  providing  Bible  literature  for  more  countries  in
Europe, including Denmark, the Netherlands, Spain, and Portugal. This represents a 24% increase in the charity’s work.

Statement of trustees’ responsibilities

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company
will continue in business.

Statement as to disclosure of information to auditors

So far as the trustees are aware, there is no relevant information of which the charitable company’s auditors are unaware, and each
trustee has taken all the steps that they ought to have taken as a trustee in order to make themselves aware of any audit information
and to establish that the charitable company’s auditors are aware of that information.

On behalf of the board:

J. Dowson

Trustee

Date: 17 March 2010

Independent Auditors’ Report to the Members of
Watch Tower Bible and Tract Society of Britain
For the Year Ended 31st August 2009

We  have  audited  the  financial  statements  of  Watch  Tower  Bible  and  Tract  Society  of  Britain  for  the  year  ended  31 August 2009
which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash
Flow Statement and related notes.  These financial statements have been prepared under the accounting policies set out therein.

This  report  is  made  solely  to  the  charitable  company’s  members,  as  a  body,  in  accordance  with  Sections  495  and  496  of  the
Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s trustees those matters
we are required to state to them  in an auditors’ report and for no other purpose. To the fullest extent permitted by law,  we do not
accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our
audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors
The  trustees’  responsibilities  for  preparing  the  financial  statements  in  accordance  with  applicable  law  and  United  Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out on page 6.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International
Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance
with  United  Kingdom  Generally  Accepted  Accounting  Principles  and  have  been  prepared  in  accordance  with  the  Companies  Act
2006.  We  also  report  to  you  whether  in  our  opinion  the  information  given  in  the  Trustees  Annual  Report  is  consistent  with  the
financial statements.

In  addition,  we  report  to  you  if,  in  our  opinion,  the  charitable  company  has  not  kept  adequate  accounting  records,  if  the  charity’s
financial  statements  are  not  in  agreement  with  the  accounting  records  and  returns,  if  we  have  not  received  all  the  information  and
explanations we require for our audit, or if certain disclosures of  trustees’ remuneration specified by law are not made.

We read the Trustees Annual Report and consider the implications for our report if we become aware of any apparent misstatements
within it.

Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements.
It  also  includes  an  assessment  of  the  significant  estimates  and  judgements  made  by  the  trustees  in  the  preparation of  the  financial
statements, and of  whether the accounting policies are appropriate to the charitable company’s  circumstances, consistently applied
and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us  with  sufficient  evidence  to  give  reasonable  assurance  that  the  financial  statements  are  free  from  material  misstatement,
whether  caused  by  fraud  or  other  irregularity  or  error.  In  forming  our  opinion  we  also  evaluated  the  overall  adequacy  of  the
presentation of information in the financial statements.

Opinion
In our opinion:

-

-

the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting
Practice, of the state of the charitable company’s affairs as at 31 August 2009 and of its incoming resources and application
of resources, including its income and expenditure for the year then ended;
the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice;

the financial statements have been properly prepared in accordance with the Companies Act 2006; and

the information given in the Trustees Annual Report is consistent with the financial statements.

N M Hume

N M Hume
Senior Statutory Auditor
For and on behalf of Calcutt Matthews, Statutory Auditors
Chartered Accountants and Registered Auditors
2nd Floor Cardine House
30 North Street
Ashford
Kent
TN24 8JR

Date: 18 March 2010

Watch Tower Bible and Tract Society of Britain
Statement of Financial Activities

(incorporating an income and expenditure account)

For the Year Ended 31

August 2009

The notes on pages 11 to 20 form part of these financial statements

2009

2008

Unrestricted

Restricted

Total

funds

as restated

Notes

£'000

Incoming resources

Incoming resources from generated funds

Voluntary income

9,986

2,242

12,228

11,426

Investment income

1,182

1,239

2,154

Incoming resources from charitable activities

Producing and distributing Bible literature

11,944

10,004

Other incoming resources

1,671

2,773

Total incoming resources

24,783

2,299

27,082

26,357

Resources expended

Charitable activities

Producing and distributing Bible literature

13,497

12,173

Promoting Christian missionary work

597

390

987

864

Making donations to further religious education
overseas

8,704

514

9,218

7,672

Governance costs

Total resources expended

22,811

904

23,715

20,734

Net incoming resources before transfers

1,972

1,395

3,367

5,623

Transfers

Gross transfers between funds

(10)

Net incoming resources before other recognised
gains and losses

1,982

1,385

3,367

5,623

Other recognised gains/losses

Realised losses on investment assets

(899)

(888)

Unrealised losses on investment assets

(1,844)

(865)

Net movement in funds

(761)

1,385

624

3,870

Reconciliation of funds

Total funds brought forward

36,300

10,839

47,139

43,269

Total funds carried forward

35,539

12,224

47,763

47,139

Continuing operations

All incoming resources and resources expended arise from continuing activities.

None of the charity’s activities were acquired or discontinued during the current and previous years. All gains and losses recognised
in the year are included above. The surplus for the year for Companies Act purposes, comprising the net incoming resources for the
year together with the realised losses on investments, was £2,469,148 (2008:£ 4,734,658).

Watch Tower Bible and Tract Society of Britain
Balance Sheet

As at 31

August 2009

The notes on pages 11 to 20 form part of these financial statements

2009

2008

Unrestricted

Restricted

Total

funds

as restated

Creditors

Amounts falling due within one year

(407)

(774)

Net current assets/liabilities

2,630

8,224

10,854

10,827

Total assets less current liabilities

65,478

12,224

77,702

69,458

Creditors

Amounts falling due after more than one year

(29,079)

(21,499)

Provisions for liabilities and charges

(860)

(820)

Net assets

35,539

12,224

47,763

47,139

Funds

Unrestricted funds

35,539

36,300

Restricted funds

12,224

10,839

Total funds

47,763

47,139

The financial statements were approved by the Board of Trustees on 17 March 2010 and were signed on its behalf by:

R. Drage

Trustee

J. Dowson

Trustee

Notes

£'000

Fixed assets

Tangible assets

4,893

543

5,436

6,145

Investments:

Investments

47,086

39,087

Programme related investments

10,869

3,457

14,326

13,399

62,848

4,000

66,848

58,631

Current assets

Stocks

1,024

982

Debtors: amounts falling due within one year

1,456

930

Investments

3,845

Cash at bank

557

8,224

8,781

5,844

3,037

8,224

11,261

11,601

Watch Tower Bible and Tract Society of Britain
Cash Flow Statement

For the Year Ended 31

August 2009

The notes on pages 11 to 20 form part of these financial statements

2009

2008

as restated

Notes

£'000

Net cash (outflow)/inflow from operating activities

516

2,369

Returns on investments and servicing of finance

121

394

Capital expenditure and financial investment

(9,127)

(722)

Management of liquid resources

3,845

1,625

Financing

7,582

1,912

Increase/(decrease) in cash in the period

2,937

5,578

Reconciliation of net cash flow to movement in net
debt

Increase in cash in the period

2,937

5,578

Cash flow from decrease in liquid resources

(3,845)

(1,625)

Cash flow from increase in financing

(7,582)

(2,200)

Other non-cash change to financing

Change in net debt

(8,488)

1,753

Net debt at 1 September 2008

(11,810)

(13,563)

Net debt at 31 August 2009

(20,298)

(11,810)

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2009

Accounting policies

Accounting convention
The financial statements have been prepared under the historical cost convention, with the exception of investments which
are included at market value, and in accordance with applicable accounting standards, the Companies Act 2006 and the
requirements of the Statement of Recommended Practice, “Accounting and Reporting by Charities”, revised 2005.

Donations receivable
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to
the income and the amount can be quantified with reasonable accuracy. No income is deferred. Donations are from the
public, congregations and other connected charities. Donations in the form of assets are included at the market value on the
date of the gift.

Income from Bible literature
Income from literature arises from literature sold to International Bible Students Association (IBSA), a connected charity, on
a cost basis, in line with the charity’s objects.

Legacies

Legacies are recognised at the earlier of the date of notification or being received.

Resources expended
All expenditure is accounted for on an accruals basis and has been classified under the headings with all aggregate costs
related to that category. The trustees are of the opinion that support costs are best allocated to the cost of producing literature.

Governance costs
Governance costs comprise external audit fees and other fees from consultants. All other administrative costs are re-charged.

Tangible fixed assets
Fixed assets are valued at cost less depreciation. Assets costing less than £1,000 are not capitalised. Depreciation is provided
at the following annual rates in order to write off each asset over its estimated useful life:

Land & Buildings

2% on cost

Plant and machinery

10% on cost

Motor vehicles

25 % on reducing balance

Impairment reviews are carried out on individual assets when there is some indication that the recoverable amount of a fixed
asset is below its net book value.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving
items.

Investments
Investments are valued at market value. All investments listed on a recognised stock exchange are carried at this value.
Unlisted investments are valued using the latest valuation information received from the financial institutions managing the
funds.

Taxation
The charity is exempt from corporation tax on its charitable activities.

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2009

Conditional Donations
The charity receives some donations where the donor reserves the right to receive the funds back. Experience has shown that
only a small percentage is returned, but prudently the charity provides for fifty percent.

Connected charities
Transactions  are  on  an  arms  length  and  accruals  basis.  Note  20  sets  out  the  relationship  with  IBSA.  Most  other  countries
have a branch office of Jehovah’s Witnesses.

Grants payable
Grants payable to other institutions are recognised at the point when their payment has been approved by the trustees.

Other recognised gains and losses
These comprise unrealised and realised gains and losses on investments.

Foreign exchange gains and losses
Foreign  currency  balances  have  been  translated  at  the  prevailing  rate  on  the  balance  sheet  date.  Income  and  expenditures
during the year have been translated at the prevailing rate on the day of the transaction.

Voluntary income

2009

2008

£'000

Donations of cash and goods

7,317

6,752

Donations of literature

2,156

1,862

Legacies

2,815

2,812

12,288

11,426

Investment income

2009

2008

£'000

Interest

1,231

2,048

UK Dividends

106

1,239

2,154

Incoming resources from charitable activities

2009

2008

£'000

Activity

Income from literature donated overseas

Producing and distributing Bible literature

3,907

3,091

Income from literature sold to IBSA

Producing and distributing Bible literature

8,037

6,913

11,944

10,004

Charitable activities costs

Direct costs

Support costs

Totals

£'000

Producing and distributing Bible literature

8,881

4,616

13,497

Promoting Christian missionary work

987

Making donations to further religious education overseas

9,218

19,086

4,616

23,702

Support costs of £4,616,000 (2008: £3,941,000) have been allocated to producing and distributing Bible literature.

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2009

Grants

During the year, grants paid to overseas institutions with congruous objectives can be analysed as follows:

By continent:

Cash

Goods

Literature

Totals

£'000

Europe

211

261

Africa

2,558

3,712

6,348

Asia

2,000

2,107

Americas

189

Other

119

120

313

2,409

2,902

3,907

9,218

By activity:

Cash

Goods

Literature

Totals

£'000

Promoting Christian missionary work via the
construction of places for worship

525

Promoting Christian missionary work via the
construction of regional headquarters

1,383

Distribution of Bibles and Bible-based literature

3,907

Supporting regional headquarters’ in their
administration of Christian missionary work

1,884

1,519

3,403

2,409

2,902

3,907

9,218

Governance costs

2009

2008

£'000

Legal fees

Auditors’ remuneration

Other services provided by the external auditors

Net incoming resources

Net incoming resources are stated after charging:

2009

2008

£'000

Auditors’ remuneration
Other services provided by external auditors

5
4

Loss on disposal of fixed assets

Depreciation

858

873

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2009

Trustees’ remuneration and benefits

There were no trustees’ remuneration or other benefits for the year ended 31 August 2009 nor for the year ended
31 August 2008.

The trustees confirm that they have not been involved with any transactions of the charity.

The trustees of the Society receive no payments or reimbursements in their capacity as trustees. The trustees are also
volunteer workers for IBSA, and as such they receive personal expense allowances of £82 per month and a personal expense
gift of £300 per year with free board and lodging from IBSA as indeed do all volunteers.

Trustees’ expenses
There were no trustees’ expenses paid for the year ended 31 August 2009 nor for the year ended 31 August 2008.

10.

Prior year adjustments

Classification of investments
Cash assets and short-term deposits allocated for future reinvestment have been reclassified from current asset investments to
fixed asset investments in accordance with the SORP paragraph 295. Funds held on deposit for operational purposes that are
available  on  demand  within  twenty-four  hours  have  been  reclassified  to  cash  from  current  asset  investments.  This  is  to
comply with the SORP paragraph 295, that only investment assets that will be realised without reinvestment of the proceeds
should be classified as current asset investments.

Provisions for liabilities and charges
Provisions  for  repayment  of  conditional  donations  (as  described  in  note  18)  have  been  reclassified  from  being  a  current
liability to being shown in the section for provisions for liabilities and charges on the balance sheet, in accordance with the
SORP, paragraphs 321 to 324.

Programme related investments
Loans  to  congregations  and  individuals  made  for  the  purpose  of  furthering  the  charity’s  objectives  have  been  reclassified
from short- term debtors to programme related investments. This is in accordance with the SORP, paragraph 308.

Long term creditors
The true and fair override applied to creditors in the current year (see note 17) has been extended to apply to the previous
year also. Deposits from individuals, circuits and congregations of Jehovah’s Witnesses have been reclassified from current
liabilities to long term liabilities on the basis that the assets deposited with the Society are held as fixed asset investments. To
show a current liability would be prejudicial to the charity’s liquidity.

Exchange rate gains and losses
In the prior year, gains and losses on currency exchange had been included in gains and losses on investment assets. These
have been reclassified as other incoming resources, as the recommended application of Statement of Standard Accounting
Practice (“SSAP”) 21 given by Appendix 2 of the SORP. This has not impacted on the net movement in funds for the year.

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2009

11.

Tangible fixed assets

Land &

Buildings

Plant &

machinery

Motor vehicles

Totals

£'000

Cost

At 1 September 2008

286

8,912

1,816

11,014

Additions

158

153

311

Disposals

(438)

(262)

(700)

At 31 August 2009

286

8,632

1,707

10,625

Depreciation

At 1 September 2008

4,223

612

4,869

Charge for year

576

277

858

Eliminated on disposal

(375)

(163)

(538)

At 31 August 2009

4,424

726

5,189

Net book value

At 31 August 2009

247

4,208

981

5,436

At 31 August 2008

252

4,689

1,204

6,145

12.

Fixed asset investments

2009

2008

as restated

£'000

a. Programme related investments

14,326

13,399

b. UK and overseas investments at market value

47,086

39,087

61,412

52,486

a. Programme related investments
Loan to IBSA
These investments comprise  monies advanced as a loan to a connected charity, IBSA, to assist in the purchase of buildings,
thus helping IBSA in achieving its objective of the provision of facilities for the printing and distribution of Bibles and Bible
based literature and the housing of the volunteers engaged in this activity.  The trustees have made no interest charge to IBSA
on the loan, on the basis that both charities have similar objects.

Congregation loans
These investments comprise  funds loaned to congregations of Jehovah’s Witnesses in Britain for the purpose of purchasing,
constructing  or  renovating  buildings  as  places  of  worship.  The  ability  of  the  congregation  to  repay  such  monies  is  assessed
prior to the funds being extended. All such loans are on an interest free basis. These loans enable the Society to further its aims
of promoting religious education and worship.

Loan to

IBSA

Congregation

loans

Total

£'000

At 1

September 2008

10,170

3,229

13,399

Advanced

2,699

1,237

3,936

Repaid

(2,000)

(1,009)

(3,009)

At 31

August 2009

10,869

3,457

14,326

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2009

b. UK and overseas investments at market value:

Total market values of investment assets held at 31 August 2009 are analysed as follows:

Cash and liquid

assets

Listed

investments

Unlisted

investments

Totals

£'000

Investment assets in the UK

2,849

2,867

Investment assets outside the UK

36,329

4,139

3,751

44,219

Market value at 31 August 2009

36,347

6,988

3,751

47,086

Unlisted investments are comprised of various funds and derivatives managed by professional firms and banks. The
valuations are based on the external fund managers’ estimates of the underlying assets of the investment vehicle.

Movements on investment assets were as follows:

£'000

Market value at 1

September 2008

39,087

Additions

28,110

Disposals

(17,418)

Net loss on revaluation

(2,693)

At 31

August 2009

47,086

13.

Stocks

2009

2008

£'000

Bibles and other literature

888

855

Raw materials

118

Motor vehicle spares and consumables

1,024

982

14.

Debtors: amounts falling due within one year

2009

2008

As restated

£'000

Trade debtors

281

294

Other debtors

1,062

467

Prepayments and accrued income

113

169

1,456

930

15.

Current asset investments

UK Short

Term Deposits

£'000

Market value at 1 September 2008 as restated

3,845

Acquired - new cash accounts

1,690

Disposals

(5,535)

Market value at 31 August 2009

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2009

16.

Creditors: amounts falling due within one year

2009

2008

As restated

£'000

Trade creditors

237

Other creditors

339

307

Accrued expenses

230

407

774

17.

Creditors: amounts falling due after more than one year

2009

2008

As restated

£'000

Deposits

29,079

21,499

18.

Provisions for liabilities and charges and contingent liabilities

2009

2008

As restated

£'000

Conditional donations

860

820

Conditional donations are donations made by individuals on the understanding that they  may be recalled should the donor
require such funds in the future. The donor retains an option over their donation until they die or write to convert it into an
outright  donation.  While  it  is  considered  probable  that  some  of  these  conditional  donations  will  need  to  be  repaid,  it  is
unknown when this liability will crystallise or how large it will be. The trustees have therefore prudently made a provision
for  50%  of  the  balance  of  conditional  donations  as  shown  above.  In  2008  and  2009,  an  average  of  £23,862  has  been
requested back. The remaining £860,000 is a contingent liability.

19.

Movement in funds

At 1.9.08

Net movement

in funds

At 31.8.09

£'000

Unrestricted funds

General fund

36,300

(761)

35,539

Restricted funds

Travelling Overseers Assistance Arrangement

584

109

693

Kingdom Hall Assistance Arrangement

4,091

336

4,427

The Society Kingdom Hall Fund

5,928

800

6,728

Relief Fund

100

138

Missionary Convention Travel

136

102

238

10,839

1,385

12,224

Total funds

47,139

624

47,763

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2009

Net movement in funds, included in the above, are as follows:

Incoming
resources

Resources

expended

Gains and

losses

Transfers

Movement in

funds

£'000

Unrestricted funds

General fund

24,783

22,811

(2,743)

(761)

Restricted funds

Travelling Overseers Assistance
Arrangement

351

242

109

Kingdom Hall Assistance
Arrangement

449

113

336

The Society Kingdom Hall Fund

1,325

525

800

Relief Fund

Missionary Convention Travel

136

(10)

102

2,299

904

(10)

1,385

Total funds

27,082

23,715

(2,743)

624

Travelling Overseers Assistance Arrangement
This  fund  was  formerly  named  the  Ministers  car  fund  and  was  set  up  for  the  provision  of  motor  vehicles  for  travelling
ministers in the British field.

Kingdom Hall Assistance Arrangement
The Kingdom Hall upkeep and assistance arrangement exists to give aid where losses  and damages have been suffered by
congregations or individuals.

The Society Kingdom Hall Fund
The Society Kingdom Hall fund was set up to provide monies to assist with the purchase of places of worship.

Relief Fund
This fund exists for the purpose of giving support to areas experiencing distress or natural disaster.

Missionary Convention Travel
This  fund  has  been  set  up  to  assist  missionaries  and  others  serving  in  foreign  lands  to  travel  to  conventions  to  be  held  in
2009. All donations to this fund are made on the understanding that any excess remaining in the fund once all expenses have
been cared for may be transferred to the “Worldwide work”- the unrestricted funds of the charity. A transfer of £10,000 was
made to unrestricted reserves during the year to cover expenses made on behalf of the Missionary Convention Travel fund.

20.

Related parties

The  charity  has  close  connections  with  IBSA,  which  provides  accommodation  for  volunteers  of  Watch  Tower  and  is  a
registered charity with similar objects. IBSA also has the same registered office as that of Watch Tower.

During the year, IBSA purchased literature from Watch Tower amounting to £8,037,143. As an integral part of the charitable
activities  of  IBSA,  it  allowed  Watch  Tower  to  use  IBSA’s  fixed  assets  and  supplied  volunteer  workers  to  enable  Watch
Tower to carry out its charitable activities. All services were provided at cost. During the year, IBSA charged Watch Tower
£4,176,521 for these services.

At the year end, IBSA owed Watch Tower £271,541 in respect of the above transactions.

During the year, IBSA carried out work on a property on behalf of Watch Tower,  with costs amounting to £141,526. The
costs were paid in full by Watch Tower to IBSA. No balance was outstanding at the year end in respect of this transaction.

IBSA also has a beneficial loan from Watch Tower to assist it in achieving its objectives. At the year end the balance stood
at £10,869,474. This loan is on an interest free basis, with no pay back date. The interest that would be due under normal,
commercial rates has been estimated at £400,000.

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2009

21.

Reconciliation of net incoming resources to net cash inflow from operating activities

2009

2008

as restated

£'000

Net incoming resources

3,367

5,623

Currency translation gains relating to investments

(1,629)

(2,738)

Depreciation charges

858

873

Loss on disposal of fixed assets

Interest received

(1,239)

(2,154)

Interest paid

363

(Increase)/Decrease in stocks

(42)

136

(Increase)/Decrease in debtors

(526)

124

(Decrease)/Increase in creditors

(367)

141

Increase in provisions

(40)

(77)

Fixed assets donated

(2)

(8)

Other non-cash donations received

(221)

(176)

Expenses paid from fixed asset investments rather than cash

Decrease in interest accrual related to investment assets

(56)

(77)

Conditional donations advanced

252

265

Conditional donations repaid

(38)

Net cash (outflow)/inflow from operating activities

516

2,369

22.

Analysis of cash flows for headings netted in the cash flow statement

2009

2008

as restated

£'000

Returns on investments and servicing of finance

Interest received

121

394

Net cash inflow for returns on investments and servicing of finance

121

394

Capital expenditure and financial investment

Purchase of tangible fixed assets

(309)

(987)

Transferred to long term investments

(6,000)

Programme related investments advanced- congregations

(1,237)

(887)

IBSA

(2,699)

Programme related investments repaid

1,006

944

Sale of tangible fixed assets

112

208

Net cash inflow/(outflow) for capital expenditure and financial
investment

(9,127)

(722)

Management of liquid resources

Cash inflows from the disposal or redemption of investments

3,845

1,625

Net cash inflow for returns on investments and servicing of finance

3,845

1,625

Financing

Loans advanced by depositors

11,055

3,793

Loans repaid to depositors on demand

(3,473)

(1,881)

Net cash inflow for financing

7,582

1,912

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2009

23.

Analysis of changes in net debt

At 1.9.08

Cash flow

Other changes

At 31.8.09

£'000

Net cash:

Cash at bank

5,844

2,937

8,781

Liquid resources:

Current asset investments

3,845

(3,845)

Financing:

Debts falling due after one year

(21,499)

(7,582)

(29,079)

(11,810)

(8,490)

(20,298)

24.

Going concern

Following the banking crisis in 2008, the trustees have carried out a review of the stability of assets held with banks and
other financial institutions at the year end. They are satisfied that assets are held in institutions with only the highest ratings,
and no provisions other than those made in the accounts are required.

The trustees are satisfied that they have sufficient liquid funds to run the charity for the foreseeable future.

Watch Tower Bible and Tract Society of Britain
Trustees’ Report

For the Year Ended 31

August 2010

Structure, governance and management

Organisational structure
The charity is a UK company limited by guarantee.

The  trustees  organise  the  charity  into  a number  of  departments.  Each  department  has  an  experienced,  trained  overseer  who  makes
regular reports to the trustees.

Wider network
Charities with similar objects exist in many countries around the world. Co-ordination is through the Governing Body of Jehovah’s
Witnesses, located at their headquarters in the United States.

Related parties
Watch Tower Bible and Tract Society of Britain (the Society) works closely with International Bible Students Association (IBSA),
which  permits  the  Society  to  use  its  facilities  for  the  Society’s  charitable  activities,  and  provides  accommodation  for  volunteers.
IBSA makes a monthly service and maintenance charge to the Society for the facilities it uses and for providing accommodation for
volunteers  connected  with  the  Society’s  activities.  The  Society  passes  to  IBSA  the  cost  incurred  in  printing  and  distributing  the
Bible-based religious literature manufactured and delivered to destinations on its behalf, and all other overhead costs.

Risk management
The major risks to which the charity is exposed were reviewed by the trustees in February 2010, with particular focus on events that
would  seriously  impede  the  operations  of  the  charity.  Serious  risks  include  catastrophic  loss  and  failure  of  internal  controls.
Strategies and safeguards are in place to reduce, as far as possible, the impact of those risks.

Objectives and activities

Objectives and aims
The objects of the Society, contained in its Memorandum and Governing document, are to advance the Christian religion as practiced
by the body of Christians known as Jehovah’s Witnesses. This is accomplished by the following specific sub-objects:
a.  promoting  the  preaching  of  the  gospel  of  God’s  Kingdom  under  Jesus  Christ  in  all  nations  as  a  witness  to  the  name,  word  and
supremacy of the Almighty God, JEHOVAH;
b. producing and distributing Bibles and other religious literature, in any medium, and educating the public in respect thereof;
c. promoting religious worship;
d. promoting Christian missionary work;
e. advancing religious education;
f. maintaining one or more religious orders or communities of special ministers of Jehovah’s Witnesses.

The major areas of activities for the year in question have been:
1. printing and distributing Bibles and Bible-based literature in several languages, which has served to advance religious education
and educate the general public in spiritual and moral values.
2. supporting congregations of Jehovah’s Witnesses and others in Britain with their spiritual and material welfare, by advancing the
Christian missionary work, which has promoted religious worship in local communities.
3.  supporting  congregations  of  Jehovah’s  Witnesses  and  others  abroad,  primarily  in  developing  countries,  with  their  spiritual  and
material  welfare,  by  making  donations  to  local  associations  of  Jehovah’s  Witnesses.  The  donations  have  been  in  the  form  of
literature,  goods,  and  services,  as  well  as  of  funding  for  the  construction  of  places  of  worship.  All  such  donations  have  promoted
religious education overseas.

Grantmaking
The  charity’s  grant  making  policy  is  as  follows:  From  time  to  time  the  charity  is  asked  by  the  Governing  Body  of  Jehovah’s
Witnesses  to  consider  helping  Jehovah’s  Witnesses  in  countries  where  a  need  exists.  The  charity  first  satisfies  itself  that  the
expenditure will further the religious work of  Jehovah’s Witnesses, and after  confirming that sufficient funds are available, it then
sends  the  money  to  the  organisation  caring  for  Jehovah’s  Witnesses  in  that  country.  Finally,  reports  are  obtained  to  confirm  the
money was properly used.

Volunteers
The charity is run entirely by volunteers kindly provided by IBSA.

Programme related investments
Note 12 to the financial statements explains that at 31 August 2010, £10.7m (2009 £14.3m) had been lent to a connected charity and
to congregations of Jehovah’s Witnesses in Britain. These interest free loans have been advanced because the objects these charities
are supporting accord with the objects of the Society, as shown above.

Watch Tower Bible and Tract Society of Britain
Trustees’ Report

For the Year Ended 31

August 2010

Achievement and performance

Charitable activities - Producing and distributing Bible literature
The charity’s rotary presses have continued to produce The Watchtower and Awake! magazines, as well as other items of Bible-based
literature. In the year, over 350 million publications were printed. These included 157 million copies of The Watchtower and Awake!
magazines,  which  were  printed  in  27  and  15  languages  respectively.  In  total,  the  charity  has  sent  Bible-based  literature  to  97
countries  in  232  languages.  All  of  the  literature  produced  is  used  to  advance  religious  education  and  educate  the  general  public  in
spiritual and moral values.

We  continue  to  be  committed  to  complying  with  relevant  legal  requirements  to  reduce  as  far  as  possible  any  impacts  on  the
environment from our operations. On August 18, 2010, the printworks was inspected under the “Environmental Permitting (England
and  Wales)  Regulations  2010.”  The  inspector’s  risk  assessment  for  Local  Air  Pollution  Control  reported  that  “Emissions  control
exceeds  BATNEEC  Requirements.”  In  a  follow-up  letter  the  inspector  wrote:  “All  of  your  permit  conditions  are  being  complied
with.  .  .  .The  printworks  is  obviously  well  managed  with  respect  to  its  environmental  impact.”  The  Risk  Assessment  Score  Sheet
shows that the printworks continues to retain its “low risk category.”

Charitable activities - Promoting Christian Missionary work
In assisting congregations of Jehovah’s Witnesses and others in Britain with their spiritual and material welfare, the charity supports
over 80 travelling ministers. These visit the congregations on a regular basis, usually twice a year, during which they provide pastoral
care.  One  of  the  primary  objectives  of  these  visits  is  for  the  travelling  minister  to  promote  the  Christian  missionary  work  by
providing  leadership  in  the public  ministry  of  Jehovah’s  Witnesses.  Additionally,  the  charity  supports 140  full-time  ministers  who
assist congregations to which the charity has assigned them. The assistance provided by these ministers enables local congregations
of  Jehovah’s  Witnesses  to  share  fully  in  promoting  and  preaching  the  good  news  of  God’s  Kingdom  and  teaching  principles  of
Christian  living.  Such  principles  include  respect  for  secular  authority,  persons,  and  property,  and  the  maintenance  of  personal
morality and family values and other facets of Christianity.

The  charity  also  runs  a  training  school  for  qualified  ministers  to  better  equip  them  to  render  spiritual  and  pastoral  care  in  the
community.  This  school,  the  Ministerial  Training  School,  gives  instruction  in  Bible  teachings  and  in  organisational  matters.  As  a
result  of  such  training,  some  are  assigned  to  serve  where  there  is  a  need  for  ministers  here  in  Britain,  whereas  others  receive
assignments in foreign countries. During the year there were three classes held from which 70 students graduated. Since the school
was inaugurated, 937 students from over 30 countries have graduated.

Charitable activities - Making donations to further religious education overseas
During the year the charity continued to support the construction of places of worship in Europe through making grants totalling over
£111,000. The completed places of worship will be centres for both local congregations of Jehovah’s Witnesses and members of the
local  community  who  wish  to  benefit  from  the  practical  values  contained  in  the  Holy  Bible,  which  promotes  both  the  moral  and
spiritual edification of mankind.

The charity also provided material and financial assistance to Associations of Jehovah’s Witnesses in several developing countries,
who are responsible for the general oversight of the activities of Jehovah’s Witnesses in that country. The funds, over £6.8m in total,
were given to promote missionary activity, to support general oversight costs of the local Association, and to assist in the operation
of local congregations of Jehovah’s Witnesses. Additionally, literature with a value of over £4.9m was donated overseas, mainly to
Africa, for use in advancing religious education.

Humanitarian aid of £32,000 was provided by the charity to assist those affected by the earthquake that struck Haiti.  These funds
were  used  towards  the  provision  of  meals  and  tents,  the  building  of  provisional  housing  units,  and  the  operation  of  a  temporary
hospital, complete with a portable operating room.

Public benefit
As evidenced above, much has been accomplished by the charity in the year to advance its objects for the public benefit. Literature
has  been  produced  to  educate  the  general  public  in  spiritual  and  moral  values.  Ministers  have  been  supported  in  aiding  others  to
develop personal morality and family values. Places of worship have been financed which are open to all who wish to benefit from
the  practical  values  contained  in  the  Holy  Bible.  These  activities  bear  out  that  the  work  of  the  charity  continues  to  benefit  both
Jehovah’s  Witnesses  and  members  of  the  community.  The  trustees  confirm  that  they  have  taken  into  consideration  Charity
Commission guidance on public benefit in exercising their powers or duties.

Internal controls
To  ensure  the  charity  is  able  to  achieve  its  objectives,  appropriate  internal  controls  have  been  established.  These  ensure  that  the
monthly  financial  reports  accurately  represent  all  transactions,  provide  reasonable  assurance  that  finances  are  being  used  for  their
intended purpose, and verify that proper controls and procedures are in place, and adhered to, so that figures are recorded accurately
and the accounts are in balance.

The internal audit programme has been achieved. The internal auditor and his assistant, both drawn from the volunteer work force,
have a set agenda to pursue throughout the year, and reported in writing to the trustees in October 2010. Approved recommendations
were implemented.

Watch Tower Bible and Tract Society of Britain
Trustees’ Report

For the Year Ended 31

August 2010

Financial review

Impact of increase in work
The charity’s  workload continues to increase. The trustees have  considered the financial and non-financial impact of this increase,
and have taken appropriate action to ensure the charity can continue to operate successfully.

Reserves policy
Although the charity has a consistent income base, in light of economic conditions, the trustees reviewed the reserves policy last year
and increased the required level of reserves to be held to the equivalent of 6 months expenditure. At the year-end, free reserves stood
at £20,068,000, which represented 10 months of expenditure (2009: £14,815,000 and 9 months).

Principal funding sources
The  primary  funding  activity  is  the  manufacture  and  distribution of  Bible-based  religious  literature  on behalf  of  IBSA,  the  cost  of
which is passed on. The charity also relies to a large extent on voluntary donations to support its work, and has a consistent income
base  through  Gift  Aid.  In  addition,  the  charity  has  an  active  treasury  management  department  to  handle  investments  it  has  been
bequeathed or converted.

Investment policy and objectives
Paragraphs 4.18 and 4.19 of the Memorandum and Articles, give power to invest funds in any lawful manner having full regard to the
suitability of the investments, the need for diversification, and to be a socially responsible investor having due consideration to the
beliefs  of  Jehovah’s  Witnesses.  The  objective  is  to  preserve  capital  and  achieve  a  real  return  of  4%  plus  inflation.  The  portfolio
achieved a return on August 31, 2010 of 5.00%. The UK Retail Price Index which is an overall measure of inflation showed a YOY
rate  of  3.1%  representing  an  upward  move  during  the period  of  1.5%.  Global  Consumer  Prices  index  of  leading  industrial  nations
compiled by the IMF shows global inflation for the period as 1.31%. The portfolio did not achieve the target of 4% above inflation.
However, the period in question continued to be very volatile, with central governments endeavouring to stimulate their economies
using  various  fiscal  and  economic  initiatives.  The  effect  was  to  make  it  difficult  to  determine  which  investment  strategies  would
result  in  modest  gains  while  preserving  the  overall  portfolio  value.  As  a  result,  during  the  period,  only  investments  which  had
liquidity were purchased. This allowed for investments to be sold if required quickly and held as cash. To end the period with a real
return (above inflation) continues to reinforce the foresight of the trustees to diversify the portfolio into several asset classes globally
and to take a very conservative stance, holding cash instruments when deemed necessary rather than investing in other asset classes.
The return compares favourably with the market in general.

Since the end of the financial year, global financial markets are increasingly becoming positive. However, to protect the value of the
portfolio the trustees continue to adopt a cautious approach to investing, until they see a genuine financial recovery in place.

Future developments

The  charity  anticipates  being  able  to  continue  to  have  a  full  share  in  funding  the  activities  of  Jehovah’s  Witnesses  in  developing
countries  and  sharing  in  the  construction  of  much  needed  places  of  worship  in  these  countries.  For  example,  it  is  anticipated  that
further  funds  and  construction  supplies  will  be  donated  to  assist  with  the  expansion  of  the  administrative  facilities  of  Jehovah’s
Witnesses  in  Nigeria  next  year.  It  is  also  expected  that  the  production  of  Bible-based  publications  will  continue  to  increase.
Additionally, the charity is increasingly involved in providing technical assistance to similar charities overseas.

Statement of trustees’ responsibilities

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company
will continue in business.

Independent Auditors’ Report to the Members of
Watch Tower Bible and Tract Society of Britain
For the Year Ended 31

August 2010

We  have  audited  the  financial  statements  of  Watch  Tower  Bible  and  Tract  Society  of  Britain  for  the  year  ended  31 August 2010,
which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash
Flow Statement and related notes.  The financial reporting framework that has been applied in their preparation is applicable law and
United Kingdom Accounting Standards.

Respective responsibilities of trustees and auditors
As explained more fully in the Trustees’ Responsibilities Statement set out on page 6, the trustees (who are also the directors of the
charitable company  for the purposes of company law) are responsible for the preparation of the financial statements and for being
satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board (APB’s) Ethical
Standards for Auditors.

Scope of the Audit of the Financial Statements

An  audit  involves  obtaining  evidence  about  the  amounts  and  disclosures  in  the  financial  statements  sufficient  to  give  reasonable
assurance  that  the  financial  statements  are  free  from  material  misstatement,  whether  caused  by  fraud  or  error.  This  includes  an
assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently
applied  and  adequately  disclosed;  the  reasonableness  of  significant  accounting  estimates  made  by  the  trustees;  and  the  overall
presentation of the financial statements.

Opinion
In our opinion the financial statements:

-

-

give a true and fair view of the state of the charitable company’s affairs as at 31 August 2010 and of its incoming resources
and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are
prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our
opinion:

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not
visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

N. M. Hume

Watch Tower Bible and Tract Society of Britain
Statement of Financial Activities

(incorporating an income and expenditure account)

For the Year Ended 31

August 2010

The notes on pages 12 to 22 form part of these financial statements

2010

2009

Unrestricted

Restricted

Total

funds

Notes

£'000

Incoming resources

(As restated)

Incoming resources from generated funds

Voluntary income

9,658

1,958

11,616

12,228

Investment income

693

735

1,239

Incoming resources from charitable activities

Producing and distributing Bible literature

11,341

8,037

Other incoming resources

746

1,711

Total incoming resources

22,438

2,000

24,438

23,215

Resources expended

Costs of generating funds

Investment management costs

312

Charitable activities

Producing and distributing Bible literature

10,382

9,630

Promoting Christian missionary work

685

308

993

987

Making donations to further religious education
overseas

11,764

143

11,907

9,218

Governance costs

Total resources expended

23,155

451

23,606

19,848

Net incoming/(outgoing) resources before transfers

(717)

1,549

832

3,367

Transfers

Gross transfers between funds

238

(238)

Net incoming/(outgoing) resources before other
recognised gains and losses

(479)

1,311

832

3,367

Other recognised gains/losses

Realised losses on investment assets

(675)

(899)

Unrealised gains/(losses) on investment assets

2,244

(1,844)

Net movement in funds

1,090

1,311

2,401

624

Reconciliation of funds

Total funds brought forward

35,539

12,224

47,763

47,139

Total funds carried forward

36,629

13,535

50,164

47,763

Continuing operations

All incoming resources and resources expended arise from continuing activities.

None of the charity’s activities were acquired or discontinued during the current and previous years. All gains and losses recognised
in the year are included above. The surplus for the year for Companies Act purposes, comprising the net incoming resources for the
year together with the realised losses on investments, was £157,094 (2009:£ 2,469,148).

Watch Tower Bible and Tract Society of Britain
Balance Sheet

As at 31

August 2010

The notes on pages 12 to 22 form part of these financial statements

2010

2009

Unrestricted

Restricted

Total

funds

Creditors

Amounts falling due within one year

(5,454)

(3,315)

Net current assets

659

1,591

2,250

7,946

Total assets less current liabilities

64,021

13,535

77,556

74,794

Creditors

Amounts falling due after more than one year

(26,244)

(26,171)

Provisions for liabilities and charges

(1,148)

(860)

Net assets

36,629

13,535

50,164

47,763

Funds

Unrestricted funds

36,629

35,539

Restricted funds

13,535

12,224

Total funds

50,164

47,763

The financial statements were approved by the Board of Trustees on 16 February 2011 and were signed on its behalf by:

P. Ellis

Trustee

B. Vigo

Trustee

Notes

£'000

(as restated)

Fixed assets

Tangible assets

4,535

410

4,945

5,436

Investments:

Investments

52,702

7,000

59,702

47,086

Programme related investments

6,125

4,534

10,659

14,326

63,362

11,944

75,306

66,848

Current assets

Stocks

1,148

1,024

Debtors: amounts falling due within one year

1,985

1,456

Cash at bank

2,980

1,591

4,571

8,781

6,113

1,591

7,704

11,261

Watch Tower Bible and Tract Society of Britain
Cash Flow Statement

For the Year Ended 31

August 2010

The notes on pages 12 to 22 form part of these financial statements

2010

2009

Notes

£'000

Net cash inflow from operating activities

2,153

516

Returns on investments and servicing of finance

121

Capital expenditure and financial investment

(6,754)

(9,127)

Management of liquid resources

3,845

Financing

362

7,582

(Decrease)/increase in cash in the period

(4,210)

2,937

Reconciliation of net cash flow to movement in net
debt

(Decrease)/Increase in cash in the period

(4,210)

2,937

Cash flow from decrease in liquid resources

(3,845)

Cash flow from increase in financing

(362)

(7,582)

Other non-cash change to financing

281

Change in net debt

(4,291)

(8,488)

Net debt at 1 September 2009

(20,298)

(11,810)

Net debt at 31 August 2010

(24,589)

(20,298)

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

Accounting policies

Accounting convention
The financial statements have been prepared under the historical cost convention, with the exception of investments which
are included at market value, and in accordance with applicable accounting standards, the Companies Act 2006 and the
requirements of the Statement of Recommended Practice, “Accounting and Reporting by Charities”, revised 2005.

Donations receivable
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to
the income and the amount can be quantified with reasonable accuracy. No income is deferred. Donations are from the
public, congregations and other connected charities. Donations in the form of assets are included at the market value on the
date of the gift.

Income from Bible literature
Income from literature arises from literature sold to International Bible Students Association (IBSA), a connected charity, on
a cost basis, in line with the charity’s objects.

Legacies

Legacies are recognised at the earlier of the date of notification or being received.

Land

Not depreciated

Buildings

2% on cost

Plant and machinery

10% on cost

Motor vehicles

25 % on reducing balance

Impairment reviews are carried out on individual assets when there is some indication that the recoverable amount of a fixed
asset is below its net book value.

Stocks
Stocks  are  valued  at  the  lower  of  cost  and net  realisable  value,  after  making  due  allowance  for  obsolete  and  slow  moving
items.

Investments
Investments  are  valued  at  market  value.  All  investments  listed  on  a  recognised  stock  exchange  are  carried  at  this  value.
Unlisted investments are valued using the latest valuation information received from the financial institutions managing the
funds.

Taxation
The charity is exempt from corporation tax on its charitable activities.

Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when
specified by the donor or when funds are raised for particular restricted purposes. Where a restricted fund has fulfilled its
purpose and excess funds remain, the balance will be transferred into unrestricted funds, provided that this was understood
by the donors at the time of their donation.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

Deposits
The Society has an arrangement whereby individuals or congregations of Jehovah’s Witnesses can deposit funds so that the
Society can benefit, on the understanding that these funds can be requested back whenever the depositor wishes. Experience
shows that only a small percentage of deposits (approximately 10%) will be called upon in any one year. In addition, much
of  the  cash  received  has  been  moved  into  fixed  asset  investments.  To  show  the  total  amount  of  deposits  as  short-term
liabilities would indicate that the charity did not have sufficient liquid assets to meet its short-term liabilities, which is not
the case. The trustees therefore feel it appropriate to reclassify these as falling due after more than one year.  10% of the total
amount on deposit is classed as a short term creditor.

Conditional Donations

The charity receives some donations where the donor reserves the right to receive the funds back. Experience has shown that
only a small percentage is returned, but prudently the charity provides for fifty percent.

Connected charities
Transactions  are  on  an  arms  length  and  accruals  basis.  Note  19  sets  out  the  relationship  with  IBSA.  Most  other  countries
have a branch office of Jehovah’s Witnesses.

Grants payable
Grants payable to other institutions are recognised at the point when their payment has been approved by the trustees.

Other recognised gains and losses
These comprise unrealised and realised gains and losses on investments. Unrealised gains and losses represent the difference
between the market value brought forward (or cost, for assets bought within this financial year) and the market value at the
balance  sheet  date.  Realised  gains  and  losses  represent  the  difference  between  sales  proceeds  and  market  value  brought
forward (or cost, for assets bought within this financial year.)

Foreign exchange gains and losses
Foreign  currency  balances  have  been  translated  at  the  prevailing  rate  on  the  balance  sheet  date.  Income  and  expenditures
during the year have been translated at the prevailing rate on the day of the transaction.  Gains and losses arise when foreign
currency assets change in value between their purchase and the balance sheet date.

Donated literature received
Literature received is recognised as a donation when it is received, valued at the equivalent of production cost. It is then held
in stock until it is sold.

Irrecoverable VAT
Irrecoverable VAT is included in the relevant cost headings on the face of the Statement of Financial Activities and is not
shown as a separate item.

Voluntary income

2010

2009

£'000

Donations of cash and goods

7,108

7,257

Donations of literature

2,433

2,156

Legacies

2,075

2,815

11,616

12,228

Investment income

During the year, investment income was derived as follows:

2010

2009

£'000

(as restated)

Investments listed on a recognised stock exchange

266

446

Other unlisted securities

329

Interest from bank deposits

140

792

735

1,239

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

Incoming resources from charitable activities

2010

2009

£'000

Activity

Income from literature sold to IBSA

Producing and distributing Bible literature

11,341

8,037

Other incoming resources

2010

2009

£'000

Foreign currency gains

635

1,671

Income from recycling

109

Rental

746

1,711

Charitable activities costs

Direct costs

Support costs

Totals

£'000

Producing and distributing Bible literature

7,376

3,006

10,382

Promoting Christian missionary work

993

Making donations to further religious education overseas

11,907

20,276

3,006

23,282

Support costs of £3,006,000 (2009: £4,616,000) have been allocated to producing and distributing Bible literature.

The equivalent figures for the 2009 year end were as follows (as restated):

Direct costs

Support costs

Totals

£'000

Producing and distributing Bible literature

5,014

4,616

9,630

Promoting Christian missionary work

947

Making donations to further religious education overseas

9,218

15,179

4,616

19,795

Analysis of costs of producing and distributing Bible literature

2010

2009

£'000

Total cost of all literature for distribution

15,345

13,537

Of which, donated overseas (see note 7)

(4,963)

(3,907)

Net cost of goods sold

10,382

9,630

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

Grants

During the year, grants paid to overseas institutions with congruous objectives can be analysed as follows:

By continent:

Cash

Goods

Literature

Totals

£'000

Europe

169

184

355

Africa

5,619

4,737

10,356

Asia

252

368

651

Americas

309

192

533

Other

453

6,491

4,963

11,907

By activity:

Cash

Goods

Literature

Totals

£'000

Promoting Christian missionary work via the
construction of places for worship

111

Promoting Christian missionary work via the
construction of regional headquarters

1,784

Distribution of Bibles and Bible-based literature

4,963

Supporting regional headquarters’ in their
administration of Christian missionary work

342

4,707

5,049

453

6,491

4,963

11,907

Material grants (in the context of grant-making) were made to the following institutions:

Watch Tower Bible & Tract Society of South Africa
Watch Tower Bible & Tract Society, Ghana
Watch Tower Society of Jehovah's Witnesses, Nigeria
Association Les Témoins de Jéhovah, Democratic Republic of Congo

The equivalent figures for the 2009 year end were as follows:

By continent:

Cash

Goods

Literature

Totals

£'000

Europe

211

261

Africa

2,558

3,712

6,348

Asia

2,000

2,107

Americas

189

Other

119

120

313

2,409

2,902

3,907

9,218

By activity:

Cash

Goods

Literature

Totals

£'000

Promoting Christian missionary work via the
construction of places for worship

525

Promoting Christian missionary work via the
construction of regional headquarters

1,383

Distribution of Bibles and Bible-based literature

3,907

Supporting regional headquarters’ in their
administration of Christian missionary work

1,884

1,519

3,403

2,409

2,902

3,907

9,218

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

Governance costs

2010

2009

£'000

Legal fees

Auditors’ remuneration

Net incoming resources

Net incoming resources are stated after charging:

2010

2009

£'000

Auditors’ remuneration
Other services provided by external auditors

Loss on disposal of fixed assets

Depreciation

769

858

10.

Trustees’ remuneration and benefits

There were no trustees’ remuneration or other benefits for the year ended 31 August 2010 nor for the year ended
31 August 2009.

The trustees confirm that they have not been involved with any transactions of the charity.

The trustees of the Society receive no payments or reimbursements in their capacity as trustees. The trustees are also
volunteer workers for IBSA, and as such they receive personal expense allowances of £95 per month and a personal expense
gift of £300 per year with free board and lodging from IBSA as indeed do all volunteers.

Trustees’ expenses
There were no trustees’ expenses paid for the year ended 31 August 2010 nor for the year ended 31 August 2009.

11.

Tangible fixed assets

Land &

Buildings

Plant &

machinery

Motor

vehicles

Totals

£'000

Cost

At 1 September 2009

286

8,632

1,707

10,625

Additions

317

322

Disposals

(134)

(6)

(140)

At 31 August 2010

286

8,815

1,706

10,807

Depreciation

At 1 September 2009

4,424

726

5,189

Charge for year

549

215

769

Eliminated on disposal

(92)

(4)

(96)

At 31 August 2010

4,881

937

5,862

Net book value

At 31 August 2010

242

3,934

769

4,945

At 31 August 2009

247

4,208

981

5,436

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

12.

Fixed asset investments

2010

2009

£'000

a. Programme related investments

10,659

14,326

b. UK and overseas investments at market value

59,702

47,086

70,361

61,412

Loan to

IBSA

Congregation

loans

Total

£'000

At 1 September 2009

10,869

3,457

14,326

Advanced

2,219

Repaid

(4,744)

(1,142)

(5,886)

At 31 August 2010

6,125

4,534

10,659

b. UK and overseas investments at market value:

Total market values of investment assets held at 31 August 2010 are analysed as follows:

Cash and liquid

assets

Listed

investments

Unlisted

investments

Total

£'000

Investment assets in the UK

11,000

Investment assets outside the UK

8,684

29,474

10,544

48,702

Market value at 31 August 2010

19,684

29,474

10,544

59,702

£'000

Market value at 1

September 2009

47,086

Additions

26,805

Disposals

(16,444)

Net gain on revaluation

2,255

At 31

August 2010

59,702

13.

Stocks

2010

2009

£'000

Bibles and other literature

1,020

888

Raw materials

100

118

Motor vehicle spares and consumables

1,148

1,024

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

14.

Debtors: amounts falling due within one year

2010

2009

£'000

Trade debtors

1,206

281

Other debtors

677

1,062

Prepayments and accrued income

102

113

1,985

1,456

15.

Creditors: amounts falling due within one year

2010

2009

£'000

(as restated)

Trade creditors

2,184

Other creditors

343

339

Deposits- due within 1 year (note 16)

2,916

2,908

Accrued expenses

5,454

3,315

16.

Creditors: amounts falling due after more than one year

2010

2009

£'000

(as restated)

Deposits- due between 1 and 5 years

29,160

29,079

Less- 10% transferred to short term creditors

(2,916)

(2,908)

26,244

26,171

Deposits comprise monies received from individuals, circuits and congregations and held with the Society until they have a
need.  Based  on  previous  experience,  it  is  considered  highly  unlikely  that  the  entire  balance  of  deposits  will  be  demanded
within the next financial year.

The deposits are given on the understanding that the Society will repay them on demand. This would normally lead to them
being classified as current liabilities. If all of the cash received in respect of these loans was held as a current asset, then this
would be the accounting policy  adopted. However, as cash accumulates (from all sources, including deposits received) the
trustees  consider  it  prudent  and  cost  effective  to  make  transfers  into  fixed  asset  investments,  both  to  improve  security  of
principal and return on investment.

The trustees believe that it would be prejudicial to the charity’s liquidity to show a current liability for the creditor (for which
no repayment date is known) and to show most of the resultant asset as a fixed asset investment. The trustees have therefore
classified the deposits as long-term creditors in order to show a true and fair view.

Based on requests for repayment over recent financial years, it is anticipated that approximately 10% of deposits held will be
requested back in the next 12 months. The trustees therefore consider it prudent to class 10% of the balance of deposits as
short term creditors.

In  the  4  months  post  year  end,  a  total  of  £1.2  million  has  been  requested  back,  and  an  additional  £3  million  has  been
deposited.

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

17.

Provisions for liabilities and charges and contingent liabilities

Conditional donations

£'000

Provision at 1 September 2009

860

Provision on new conditional donations received

349

Provision released on conditional donations converted into donations

(57)

Provision released on conditional donations repaid

(4)

Provision at 31 August 2010

1,148

Conditional donations are donations made by individuals on the understanding that they may be recalled should the donor
require such funds in the future. The donor retains an option over their donation until they die or write to convert it into an
outright donation. While it is considered probable that some of these conditional donations will need to be repaid, it is
unknown when this liability will crystallise or how large it will be. The trustees have therefore prudently made a provision
for 50% of the balance of conditional donations as shown above. £8,000 was requested back in 2010 (2009: £37,500). The
remaining £1.1million is a contingent liability.

18.

Movement in funds

At 1.9.09

Net movement

in funds

At 31.8.10

£'000

Unrestricted funds

General fund

35,539

1,090

36,629

Restricted funds

Travelling Overseers Assistance Arrangement

693

162

855

Kingdom Hall Assistance Arrangement

4,427

278

4,705

The Society Kingdom Hall Fund

6,728

1,059

7,787

Relief Fund

138

188

Missionary Convention Travel

238

(238)

12,224

1,311

13,535

Total funds

47,763

2,401

50,164

Net movement in funds, included in the above, are as follows:

Incoming
resources

Resources

expended

Gains and

losses

Transfers

Movement in

funds

£'000

Unrestricted funds

General fund

22,438

(23,155)

1,569

238

1,090

Restricted funds

Travelling Overseers Assistance
Arrangement

355

(193)

162

Kingdom Hall Assistance
Arrangement

393

(115)

278

The Society Kingdom Hall Fund

1,170

(111)

1,059

Relief Fund

(32)

Missionary Convention Travel

(238)

2,000

(451)

(238)

1,311

Total funds

24,438

(23,606)

1,569

2,401

Travelling Overseers Assistance Arrangement
This fund was formerly named the Ministers car fund and was set up for the provision of motor vehicles for travelling
ministers in the British field.

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

Kingdom Hall Assistance Arrangement
The  Kingdom  Hall  upkeep  and  Assistance  Arrangement  (KHAA)  exists  to  give  aid  where  losses  and  damages  have  been
suffered by congregations or individuals. Many congregations and certain individuals pay into this fund on the understanding
that the Society will give them financial assistance in the event of loss or damage to their property. This fund operates world
wide,  so  that  if  any  one  local  branch  office  of  Jehovah’s  Witnesses  is  unable  to  meet  the  demands  on  its  Kingdom  Hall
Assistance Arrangement, it can request other branches to contribute from their own KHAA funds. This creates a contingent
liability within the Society’s accounts, limited to the value of the fund locally, currently £4.7 million.

The Society Kingdom Hall Fund
The Society Kingdom Hall fund was set up to provide monies to assist with the purchase of places of worship.

Relief Fund
This fund exists for the purpose of giving support to areas experiencing distress or natural disaster.

Missionary Convention Travel
This  fund  was  set  up  to  assist  missionaries  and  others  serving  in  foreign  lands  to  travel  to  conventions  that  were  held  in
2009. All donations to this fund were made on the understanding that any excess remaining in the fund once all expenses had
been cared for may be transferred to the “Worldwide work”- the unrestricted funds of the charity. As all costs had been cared
for  prior  to the  start  of  this  financial  year,  the  fund  has  been  closed  down  and  the  balance  held transferred  to  unrestricted
reserves.

19.

Related parties

The  charity  has  close  connections  with  IBSA,  which  provides  accommodation  for  volunteers  of  Watch  Tower  and  is  a
registered charity with similar objects. IBSA also has the same registered office as that of Watch Tower.

During  the  year,  IBSA  purchased  literature  from  Watch  Tower  amounting  to  £11,340,917  (2009:£8,037,143).  At  the  year
end,  IBSA  owed  Watch  Tower  £1,204,150  (2009:  £271,541),  being  the  invoice  for  August  2010.  Post  year  end,  it  was
discovered that Watch Tower had overcharged IBSA for literature by approximately £1.4 million over the past two years. A
creditor of this amount has been provided for in the current year.

As  an  integral  part  of  the  charitable  activities  of  IBSA,  it  allowed  Watch  Tower  to  use  IBSA’s  fixed  assets  and  supplied
volunteer workers to enable Watch Tower to carry out its charitable activities. All services were provided at cost. During the
year,  IBSA  charged  Watch  Tower  £4,330,053  (2009:£4,176,521)  for  these  services.  At  the  year  end,  Watch  Tower  owed
IBSA £391,556 (2009:£nil) in respect of the above transactions.

During the prior year, IBSA carried out work on a property on behalf of Watch Tower, with costs amounting to £141,526.
The  costs  were  paid  in  full  by  Watch  Tower  to  IBSA.  No  balance  was  outstanding  at  the  year  end  in  respect  of  this
transaction.

IBSA also has a beneficial loan from Watch Tower to assist it in achieving its objectives. At the year end the balance stood
at £6,125,000 (2009:£10,869,474). This loan is on an interest free basis, with no pay back date. The interest that would be
due under normal, commercial rates has been estimated at £400,000 (2009: £400,000).

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

20.

Reconciliation of net incoming resources to net cash inflow from operating activities

2010

2009

£'000

Returns on investments and servicing of finance

Interest received

121

Net cash inflow for returns on investments and servicing of finance

121

Capital expenditure and financial investment

Purchase of tangible fixed assets

(322)

(309)

Transferred to long term investments

(10,000)

(6,000)

Programme related investments advanced- congregations

(2,220)

(1,237)

IBSA

(2,699)

Programme related investments repaid

5,787

1,006

Sale of tangible fixed assets

112

Net cash inflow/(outflow) for capital expenditure and financial
investment

(6,754)

(9,127)

Management of liquid resources

Cash inflows from the disposal or redemption of investments

3,845

Net cash inflow for returns on investments and servicing of finance

3,845

Financing

Loans advanced by depositors

4,095

11,055

Loans repaid to depositors on demand

(3,733)

(3,473)

Net cash inflow for financing

362

7,582

2010

2009

£'000

Net incoming resources

832

3,367

Currency translation gains relating to investments

(687)

(1,629)

Depreciation charges

769

858

Loss on disposal of fixed assets

Fixed assets donated to cooperating societies at net book value

Interest received

(735)

(1,239)

Interest paid

(Increase)/Decrease in stocks

(124)

(42)

(Increase)/Decrease in debtors

(529)

(526)

(Decrease)/Increase in creditors

2,139

(367)

Movement in short term creditors provision

(8)

Increase in provisions

(288)

(40)

Donations received in the form of fixed assets

(2)

Other non-cash donations received

(240)

(221)

Expenses paid from fixed asset investments rather than cash

358

Decrease in interest accrual related to investment assets

(12)

(56)

Conditional donations advanced

643

252

Conditional donations repaid

(8)

(38)

Net cash (outflow)/inflow from operating activities

2,153

516

21.

Analysis of cash flows for headings netted in the cash flow statement

Watch Tower Bible and Tract Society of Britain
Notes to the Financial Statements

For the Year Ended 31

August 2010

22.

Analysis of changes in net debt

At 1.9.09

Cash flow

Other changes

At 31.8.10

£'000

Net cash:

Cash at bank

8,781

(4,210)

4,571

Financing:

Debts falling due within one year

(2,908)

(8)

(2,916)

Debts falling due after one year

(26,171)

(362)

289

(26,244)

(20,298)

(4,572)

281

24,589

23.

24.

Prior year adjustment

Long term creditors
The charity has adopted a policy of showing a proportion of funds on deposit as current liabilities, this being the amount that
is expected to be repaid in the course of the next financial year (see note 16). This policy has also been applied to the prior
year. There is no change to the surplus for the year due to this policy being applied.

Watch Tower Bible and Tract Society of
Britain

Report of the Trustees
for the Year Ended 31st August 2011

STRUCTURE, GOVERNANCE AND MANAGEMENT
Recruitment and appointment, induction and training of new trustees
The recruitment and induction of new trustees is arranged as follows: On an annual basis the trustees review potential
candidates.  These  are  required  to  be  appointed  as  elders  in  congregations  of  Jehovah's  Witnesses.  Their  abilities  are
evaluated  by  means  of  the  trustees'  personal  knowledge  of  the  candidates  or  by  a  "personal  qualifications  report"
provided by elders with knowledge of the individuals. Trustees are given appropriate Charity Commission publications
and  training  is  arranged  as  part  of  the  meetings  of  the  trustees  when  the  charity's  policies  are  discussed.  This  is
supplemented  by  periodic  training  provided  by  Calcutt  Matthews  when  new  legislation  affecting  the  charity  is
introduced.  Additionally,  arrangements  are  made  for  new  trustees  to  attend  a  comprehensive  course  that  includes
training in legal, organisational, and financial matters.

The  trustees  of  the  charity  also  have  key  managerial  roles  at  the  charity  headquarters.  They  meet  several  times  each
month, and are in regular contact from day to day. Trustees are elected annually, by a simple majority of the members
present at the AGM.

Organisational structure
The charity is a UK company limited by guarantee.

The trustees organise the charity into a number of departments. Each department has an experienced, trained overseer
who makes regular reports to the trustees.

Wider network
Charities with similar objects exist in many countries around the world. During the year, Watch Tower Bible and Tract
Society  of  Britain  (the  Society)  started  to  work  more  closely  with  one  such  charity  in  Germany.  Co-ordination  is
through the Governing Body of Jehovah's Witnesses, located at their headquarters in the United States.

Related parties
In Britain, the Society works closely with International Bible Students Association (IBSA), which provides the Society
with  serviced  facilities  for  its  charitable  activities.  The  Society  passes  to  IBSA  the  cost  incurred  in  printing  and
distributing  the  Bible-based  religious  literature  manufactured  and  delivered  to  destinations  in  the  UK  and  EU  on  its
behalf, and all other overhead costs.

Risk management
The major risks to which the charity is exposed were reviewed by the trustees in December 2010, and again in October
2011,  when  the  risk  register  was  updated. The  update  focused  particularly  on  events  that  would  seriously  impede  the
operations  of  the  charity.  Serious  risks  include  catastrophic  loss  and  failure  of  internal  controls.  Strategies  and
safeguards are in place to reduce, as far as possible, the impact of those risks.

OBJECTIVES AND ACTIVITIES
Objectives and aims
The  objects  of  the  Society,  contained  in  its  Memorandum  and  Governing  document,  are  to  advance  the  Christian
religion as practiced by the body of  Christians  known as Jehovah's Witnesses. This is accomplished by the  following
specific sub-objects:
a. promoting the preaching of the gospel of God's Kingdom under Jesus Christ in all nations as a witness to the name,
word and supremacy of the Almighty God, JEHOVAH;
b. producing and distributing Bibles and other religious literature, in any medium, and educating the public in respect
thereof;
c. promoting religious worship;
d. promoting Christian missionary work;
e. advancing religious education;

Watch Tower Bible and Tract Society of
Britain

Report of the Trustees
for the Year Ended 31st August 2011

OBJECTIVES AND ACTIVITIES
Objectives and aims
The major areas of activities for the year in question have been:
1. printing and distributing Bibles and Bible-based literature in several languages, which has served to advance religious
education and educate the general public in spiritual and moral values.
2.  supporting  congregations  of  Jehovah's  Witnesses  and  others  in  Britain  with  their  spiritual  and  material  welfare,  by
advancing the Christian missionary work, which has promoted religious worship in local communities.
3.  supporting  congregations  of  Jehovah's  Witnesses  and  others  abroad,  primarily  in  developing  countries,  with  their
spiritual  and  material  welfare,  by  making  donations  to  local  associations  of  Jehovah's  Witnesses.  The  donations  have
been in the form of literature, goods, and services, as well as of funding for the construction of places of worship. All
such donations have promoted religious education overseas.

Grantmaking
The  charity's  grant  making  policy  is  as  follows:  From  time  to  time  the  charity  is  asked  by  the  Governing  Body  of
Jehovah's Witnesses to consider helping Jehovah's Witnesses in countries where a need exists. The charity first satisfies
itself  that  the  expenditure  will  further  the  religious  work  of  Jehovah's  Witnesses,  and  after  confirming  that  sufficient
funds are available, it then sends the money to the organisation caring for Jehovah's Witnesses in that country. Finally,
reports are obtained to confirm the money was properly used.

Programme related investments
Note  16  to  the  financial  statements  explains  that  at  31  August  2011,  £5.3m  (2010  £10.7m)  had  been  lent  to
congregations of Jehovah's Witnesses in Britain. These interest free loans have been advanced because the objects these
congregations are supporting accord with the objects of the Society, as shown above. During the year the loan to IBSA
was repaid in full.

Workers and volunteers
The  charity  is  run  entirely  by  workers  and  volunteers  drawn  from  the  Christian  body  of  persons  known  as  Jehovah's
Witnesses.

ACHIEVEMENT AND PERFORMANCE
Charitable activities - Producing and distributing Bible literature
The charity's rotary presses have continued to produce The Watchtower and Awake! magazines, as well as other items
of Bible-based literature. In the year, over 428 million publications were printed. These included 153 million copies of
The Watchtower and Awake! magazines, which were printed in 25 and 15 languages respectively. In total, the charity
has  sent  Bible-based  literature  to  124  countries  in  240  languages.  All  of  the  literature  produced  is  used  to  advance
religious education and educate the general public in spiritual and moral values.

Despite a statutory requirement for print works setting a limit of 30% fugitive volatile organic compound emissions into
the  atmosphere  in  a  12-month  period,  the  Society  achieved  a  reduction  from  an  already  low  level  value  of  3.48%
fugitive emissions in 2009 to 2.07% in 2010.

Charitable activities - Promoting Christian Missionary work
In  assisting  congregations  of  Jehovah's  Witnesses  and  others  in  Britain  with  their  spiritual  and  material  welfare,  the
charity  supports  over  80  travelling  ministers.  These  visit  the  congregations  on  a  regular  basis,  usually  twice  a  year,
during  which they provide pastoral care. One of the primary objectives of these  visits is  for the travelling  minister to
promote  the  Christian  missionary  work  by  providing  leadership  in  the  public  ministry  of  Jehovah's  Witnesses.
Additionally,  the  charity  supports  140  full-time  ministers  who  assist  congregations  to  which  the  charity  has  assigned
them. The assistance provided by these ministers enables local congregations of Jehovah's Witnesses to share fully in
promoting and preaching the good news of God's Kingdom and teaching principles of Christian living. Such principles
include respect for secular authority, persons, and property, and the maintenance of personal morality and family values
and other facets of Christianity.

The charity also runs a training school for qualified ministers to better equip them to render spiritual and pastoral care in
the community. This school, the Bible School for Single Brothers, formerly known as the Ministerial Training School,
gives  instruction  in  Bible  teachings  and  in  organisational  matters.  As  a  result  of  such  training,  some  are  assigned  to
serve  where  there  is  a  need  for  ministers  here  in  Britain,  whereas  others  receive  assignments  in  foreign  countries.
During the year there were two classes held from which 49 students graduated. 9 of these students came from European
countries. Since the school was inaugurated, 986 students have graduated.

Watch Tower Bible and Tract Society of
Britain

Report of the Trustees
for the Year Ended 31st August 2011

Charitable activities - Making donations to further religious education overseas
During  the  year  the  charity  continued  to  provide  material  and  financial  assistance  to  Associations  of  Jehovah's
Witnesses in several countries, who are responsible for the general oversight of the activities of Jehovah's Witnesses in
that country. The aid, over £20m in total, was given to promote missionary activity, to support general costs of the local
Association, and to assist in the operation of local congregations of Jehovah's Witnesses. Additionally, literature with a
value of over £4.1m was donated overseas, mainly to Africa, for use in advancing religious education.

Humanitarian  aid  of  £107,000  was  provided  to  support  the  on-going  reconstruction  after  the  earthquake  that  struck
Haiti.  These  funds  were  used  towards  the  construction  of  1,700  temporary  shelters  and  Kingdom  Halls,  and  the
replacement of those that were destroyed.

Public benefit
As  evidenced  above,  much  has  been  accomplished  by  the  charity  in  the  year  to  advance  its  objects  for  the  public
benefit. Literature has been produced to educate the general public in spiritual and moral values. Ministers have been
supported in aiding others to develop personal morality and family values. Places of worship have been financed which
are open to all who wish to benefit from the practical values contained in the Holy Bible. These activities bear out that
the  work  of  the  charity  continues  to  benefit  both  Jehovah's  Witnesses  and  members  of  the  community.  The  trustees
confirm  that  they  have  taken  into  consideration  Charity  Commission  guidance  on  public  benefit  in  exercising  their
powers or duties.

Internal controls
To ensure the charity is able to achieve its objectives, appropriate internal controls have been established. These ensure
that  the  monthly  financial  reports  accurately  represent  all  transactions,  provide  reasonable  assurance  that  finances  are
being  used  for their intended  purpose, and verify that proper controls and procedures are in place, and adhered to, so
that figures are recorded accurately and the accounts are in balance.

The  internal  audit  programme  has  been  achieved.  The  internal  auditor  and  his  assistant  have  a  set  agenda  to  pursue
throughout  the  year,  and  reported  in  writing  to  the  trustees  in  October  2011.  Approved  recommendations  were
implemented.

FINANCIAL REVIEW
Reserves policy
Although the charity has a consistent income base, in light of economic conditions, the trustees have arranged to work
more closely with a similar charity overseas. In view of the resultant good cooperation, it will be possible to reduce the
level  of  reserves  held,  while  improving  the  service  provided  to  beneficiaries.  At  the  year-end,  free  reserves  stood  at
£21,288,000, which represented 7 months of expenditure (2010: £20,068,000 and 10 months). Because the arrangement
has worked so well, the trustees aim over the current year to reduce the level of reserves held. The trustees feel that such
a policy makes best use of the charity's income, and are confident that it in no way adversely affects the charity's ability
to both sustain and increase its activity.

Principal funding sources
The primary funding activity is the manufacture and distribution of Bible-based religious literature on behalf of IBSA,
the cost of which is passed on. The charity also relies to a large extent on voluntary donations to support its work, and
has a consistent income base through Gift Aid. As mentioned above, the charity has also started working more closely
with a similar charity overseas, and has received substantial grants from this charity, which has committed itself to
provide further funding, as both charities work towards fulfilling their common objectives and aims. In addition, the
charity has an active treasury management department to handle investments it has been bequeathed or converted.

Investment policy and objectives
The Memorandum and Articles, give power to invest funds in any lawful manner having full regard to the suitability of
the investments, the need for diversification, and to be a socially responsible investor having due consideration to the
beliefs of Jehovah's Witnesses. The objective is to preserve capital and achieve a real return of 4% plus inflation. The
portfolio  had  a  negative  performance  on  August  31,  2010  of  -4.24%.  Given  the  requirement  to  be  prudent  in  our
investment approach, achieving a target real return above UK inflation of 4% would have increased risk to the Portfolio.
To  reduce  risk  the  Portfolio  was  diversified  by  currency  and  asset  class.  The  Trustees  continue  to  see  the  wisdom  in
holding  to  the  current  strategy  favouring  portfolio  diversification  both  by  asset  class  and  currency  exposure,  having
adequate liquidity and investment quality.

Watch Tower Bible and Tract Society of
Britain

Report of the Trustees
for the Year Ended 31st August 2011

FUTURE DEVELOPMENTS
The  charity  anticipates  being  able  to  continue  to  have  a  full  share  in  funding  the  activities  of  Jehovah's  Witnesses  in
other countries and in producing Bible-based publications.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The trustees (who are also the directors of Watch Tower Bible and Tract Society of Britain for the purposes of company
law)    are  responsible  for  preparing  the  Report  of  the  Trustees  and  the  financial  statements  in  accordance  with
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company  law  requires  the  trustees  to  prepare  financial  statements  for  each  financial  year  which  give  a  true  and  fair
view  of  the  state  of  affairs  of  the  charitable  company  and  of  the  incoming  resources  and  application  of  resources,
including  the  income  and  expenditure,    of  the  charitable  company  for  that  period.    In  preparing  those  financial
statements, the trustees are required to

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charity SORP;

make judgements and estimates that are reasonable and prudent;

state whether applicable accounting standards have been followed, subject to any material departures disclosed
and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time
the financial position of the charitable company and to enable them to ensure that the financial statements comply with
the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for
taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006)
of which the charitable company`s auditors are unaware, and each trustee has taken all the steps that they ought to have
taken as a trustee in order to make them aware of any audit information and to establish that the charitable company`s
auditors are aware of that information.

ON BEHALF OF THE BOARD:

P. Bell
Trustee

Date: 13 March 2012

Report of the Independent Auditors to the Members of
Watch Tower Bible and Tract Society of
Britain

We  have  audited  the  financial  statements  of  Watch  Tower  Bible  and  Tract  Society  of  Britain  for  the  year  ended
31st August 2011  on  pages  seven  to  twenty  four.  The  financial  reporting  framework  that  has  been  applied  in  their
preparation  is  applicable  law  and  United  Kingdom  Accounting  Standards  (United  Kingdom  Generally  Accepted
Accounting Practice).

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of
the  Companies  Act  2006.  Our  audit  work  has  been  undertaken  so  that  we  might  state  to  the  charitable  company's
members those  matters  we are required to state to them in an auditors' report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the
charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors
As  explained  more  fully  in  the  Statement  of  Trustees'  Responsibilities,  the  trustees  (who  are  also  the  directors  of  the
charitable company for the purposes of company law) are responsible for the preparation of the financial statements and
for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices
Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements
An  audit  involves  obtaining  evidence  about  the  amounts  and  disclosures  in  the  financial  statements  sufficient  to  give
reasonable  assurance  that  the  financial  statements  are  free  from  material  misstatement,  whether  caused  by  fraud  or
error.  This  includes  an  assessment  of:  whether  the  accounting  policies  are  appropriate  to  the  charitable  company's
circumstances  and  have  been  consistently  applied  and  adequately  disclosed;  the  reasonableness  of  significant
accounting  estimates  made  by  the  trustees;  and  the  overall  presentation  of  the  financial  statements.    In  addition,  we
read  all  the  financial  and  non-financial  information  in  the  Report  of  the  Trustees  to  identify  material  inconsistencies
with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we
consider the implications for our report.

Opinion on financial statements
In our opinion the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31st August 2011 and of its
incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Report of the Trustees for the financial year for which the financial
statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to
you if, in our opinion:

adequate accounting records have not been kept or returns adequate for our audit have not been received from
branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

N. M. Hume

Nicholas Hume FCA (Senior Statutory Auditor)
for and on behalf of Calcutt Matthews Ltd
Chartered Accountants and Statutory Auditor
19 North Street
Ashford
Kent
TN24 8LF

Date: 13 March 2012

The notes form part of these financial statements

Watch Tower Bible and Tract Society of
Britain

Statement of Financial Activities
(Incorporating an Income and Expenditure Account)
for the Year Ended 31st August 2011

2011

2010

Unrestricted

Restricted

Total

funds

Notes

INCOMING RESOURCES

Incoming resources from generated funds

Voluntary income

15,426,699

1,963,016

17,389,715

11,616,131

Investment income

1,050,572

46,299

1,096,871

736,910

Incoming resources from charitable activities 4

Producing and distributing Bible literature

11,757,244

11,340,917

Other incoming resources

189,752

743,980

Total incoming resources

28,424,267

2,009,315

30,433,582

24,437,938

RESOURCES EXPENDED

Costs of generating funds

Investment management costs

262,088

312,081

Charitable activities

Producing and distributing Bible literature

12,024,261

10,382,266

Promoting Christian missionary work

579,445

297,716

877,161

992,603

Making donations to further religious education
overseas

24,188,290

107,767

24,296,057

11,907,391

Governance costs

11,550

12,000

Total resources expended

37,065,634

405,483

37,471,117

23,606,341

NET INCOMING/(OUTGOING)
RESOURCES

(8,641,367)

1,603,832

(7,037,535)

831,597

Realised gains/(losses) on fixed asset
investments

(2,339,473)

(674,502)

Net income/(expenditure)

(10,980,840)

1,603,832

(9,377,008)

157,095

Unrealised gains/losses on investment assets

(436,068)

2,244,134

Net movement in funds

(11,416,908)

1,603,832

(9,813,076)

2,401,229

RECONCILIATION OF FUNDS

Total funds brought forward

36,630,092

13,534,315

50,164,407

47,763,178

TOTAL FUNDS CARRIED FORWARD

25,213,184

15,138,147

40,351,331

50,164,407

CONTINUING OPERATIONS
All incoming resources and resources expended arise from continuing activities.

None of the charity's activities were acquired or discontinued during the current and previous years. All gains and losses
recognised  in  the  year  are  included  above.  The  deficit  for  the  year  for  Companies  Act  purposes,  comprising  the  net
outgoing  resources  for  the  year  together  with  the  realised  losses  on  investments,  was  £9,377,008  (2010:  surplus
£157,095).

The notes form part of these financial statements

Watch Tower Bible and Tract Society of
Britain

Balance Sheet
At 31st August 2011

2011

2010

Unrestricted

Restricted

Total

funds

Notes

FIXED ASSETS

Tangible assets

3,924,815

446,962

4,371,777

4,945,286

Investments

Investments

50,149,804

7,000,000

57,149,804

59,701,825

Investment property

180,000

Programme related investments

5,347,289

10,659,381

54,254,619

12,794,251

67,048,870

75,306,492

CURRENT ASSETS

Stocks

1,288,839

1,147,785

Debtors: amounts falling due within one year

1,302,810

1,985,490

Cash at bank and in hand

3,923,169

2,343,896

6,267,065

4,570,785

6,514,818

2,343,896

8,858,714

7,704,060

CREDITORS

Amounts falling due within one year

(4,891,579)

(5,454,456)

NET CURRENT ASSETS

1,623,239

2,343,896

3,967,135

2,249,604

TOTAL ASSETS LESS CURRENT
LIABILITIES

55,877,858

15,138,147

71,016,005

77,556,096

CREDITORS

Amounts falling due after more than one year

(29,333,633)

(26,244,147)

PROVISIONS FOR LIABILITIES

(1,331,041)

(1,147,542)

NET ASSETS

25,213,184

15,138,147

40,351,331

50,164,407

FUNDS

Unrestricted funds:

General fund

25,109,689

36,630,092

Revaluation Reserve

103,495

25,213,184

36,630,092

Restricted funds

15,138,147

13,534,315

TOTAL FUNDS

40,351,331

50,164,407

The notes form part of these financial statements

Watch Tower Bible and Tract Society of
Britain

Cash Flow Statement
for the Year Ended 31st August 2011

2011

2010

Notes

Net cash (outflow)/inflow from operating
activities

(6,933,958)

2,154,136

Returns on investments and servicing of finance

34,348

27,435

Capital expenditure and financial investment

5,122,808

(6,754,143)

(1,776,802)

(4,572,572)

Financing

3,473,082

362,190

Increase/(decrease) in cash in the period

1,696,280

(4,210,382)

Reconciliation of net cash flow to movement in
net debt

Increase/(decrease) in cash in the period

1,696,280

(4,210,382)

Cash inflow/(outflow) from increase/(decrease) in
debt and lease financing

(3,432,763)

(362,190)

Change in net debt resulting from cash flows

(1,736,483)

(4,572,572)

Other non cash change to net debt

281,078

Movement in net debt in the period

(1,736,483)

(4,291,494)

Net debt at 1st September

(24,589,378)

(20,297,884)

Net debt at 31st August

(26,325,861)

(24,589,378)

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements
for the Year Ended 31st August 2011

ACCOUNTING POLICIES

Accounting convention
The  financial  statements  have  been  prepared  under  the  historical  cost  convention,  with  the  exception  of
investments  which  are  included  at  market  value,  and  in  accordance  with  applicable  accounting  standards,  the
Companies  Act  2006  and  the  requirements  of  the  Statement  of  Recommended  Practice,  "Accounting  and
Reporting by Charities."

Donations receivable
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally
entitled  to  the  income  and  the  amount  can  be  quantified  with  reasonable  accuracy.  No  income  is  deferred.
Donations  are  from  the  public,  congregations  and  other  similar  charities.  Donations  in  the  form  of  assets  are
included at the market value on the date of the gift.

Income from Bible literature
Income  from  literature  arises  from  literature  sold  to  International  Bible  Students  Association  (IBSA),  a
connected charity, on a cost basis, in line with the charity's objects.

Legacies
Legacies are recognised at the earlier of the date of notification or being received.

Resources expended
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost
related  to  the  category.  The  trustees  are  of  the  opinion  that  support  costs  are  best  allocated  to  the  cost  of
producing Bible literature.    Grants offered subject to conditions which have not been met at the year end date
are noted as a commitment but not accrued as expenditure.

Costs of generating funds
These are comprised of investment management costs incurred during the year. The charity does not engage in
fund raising.

Governance costs
Governance costs comprise external audit fees and other fees from consultants. All other administrative costs
are re-charged.

Tangible fixed assets
Fixed assets are valued at cost less depreciation. Assets costing less than £1,000 are not capitalised.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful
life:

Land

Not depreciated

Buildings

2% on cost

Plant and machinery

10%/15% on cost

Motor vehicles

25 % on reducing balance

Fixtures and fittings

10% on cost

Impairment reviews are carried out on individual assets when there is some indication that the recoverable
amount of a fixed asset is below its net book value.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in
market value is transferred to a revaluation reserve.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow
moving items.

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

ACCOUNTING POLICIES - continued

Taxation
The charity is exempt from corporation tax on its charitable activities.

Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions
arise when specified by the donor or when funds are raised for particular restricted purposes. Where a restricted
fund has fulfilled its purpose and excess funds remain, the balance will be transferred into unrestricted funds,
provided that this was understood by the donors at the time of their donation.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Investments
Investments are valued at market value. All investments listed on a recognised stock exchange are carried at this
value.  Unlisted  investments  are  valued  using  the  latest  valuation  information  received  from  the  financial
institutions managing the funds.

Deposits
The Society has an arrangement whereby individuals or congregations of Jehovah's Witnesses can deposit funds
so  that  the  Society  can  benefit,  on  the  understanding  that  these  funds  can  be  requested  back  whenever  the
depositor wishes. Experience shows that only a small percentage of deposits (approximately 10%) will be called
upon in any one year. In addition, much of the cash received has been moved into fixed asset investments. To
show the total amount of deposits as short-term liabilities would indicate that the charity did not have sufficient
liquid assets to meet its short-term liabilities, which is not the case. The trustees therefore feel it appropriate to
classify these as falling due after more than one year.    10% of the total amount on deposit is classed as a short
term creditor.

Conditional donations
The charity receives some donations  where the donor reserves the right to receive the  funds back. Experience
has shown that only a small percentage is returned, but prudently the charity provides for fifty percent.

Connected charities
Transactions are on an arms length and accruals basis. Note 24 sets out the relationship with IBSA. Most other
countries have an administrative office of Jehovah's Witnesses.

Grants payable
Grants  payable  to  other  institutions  are  recognised  at  the  point  when  their  payment  has  been  approved  by  the
trustees.

Other recognised gains and losses
These comprise unrealised and realised gains and losses on investments. Unrealised gains and losses represent
the difference between the  market value brought forward (or cost, for assets bought  within this financial  year)
and the market value at the balance sheet date. Realised gains and losses represent the difference between sales
proceeds and market value brought forward (or cost, for assets bought within this financial year.)

Donated literature received
Literature received is recognised as a donation when it is received, valued at the equivalent of production cost. It
is then held in stock until it is sold.

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

ACCOUNTING POLICIES - continued

Irrecoverable VAT
Irrecoverable VAT is included in the relevant cost headings on the face of the Statement of Financial Activities
and is not shown as a separate item.

VOLUNTARY INCOME

2011

2010

Donations of literature

2,423,982

2,432,819

Legacies

2,473,858

2,075,191

Grants

5,514,047

Donations of cash and goods

6,977,828

7,108,121

17,389,715

11,616,131

INVESTMENT INCOME

2011

2010

Rents received

1,958

1,993

Investments listed on a recognised stock exchange

907,550

266,410

Other unlisted securities

130,070

328,840

Deposit account interest

57,293

139,667

1,096,871

736,910

INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

2011

2010

Activity

Income from literature sold
to IBSA

Producing and distributing Bible literature

11,757,244

11,340,917

OTHER INCOMING RESOURCES

2011

2010

Foreign currency gains

634,570

Income from recycling

189,752

109,410

189,752

743,980

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

INVESTMENT MANAGEMENT COSTS

2011

2010

Portfolio management

262,088

312,081

CHARITABLE ACTIVITIES COSTS

Direct costs

Grant funding

of activities

Support costs

Totals

(See note 8)

(See note 9)

Producing and distributing Bible literature

7,932,713

4,091,548

12,024,261

Promoting Christian missionary work

877,161

Making donations to further religious
education overseas

24,296,057

8,809,874

24,296,057

4,091,548

37,197,479

GRANTS PAYABLE

2011

2010

Making donations to further religious education overseas

24,296,057

11,907,391

During the year, grants paid to overseas institutions with congruous objectives can be analysed as follows:

By continent:

Cash

Goods

Literature

Totals

Europe

305,833

140

305,973

Africa

8,438,873

3,617,785

12,056,674

Asia

247,803

3,256,022

33,748

3,537,573

Americas

107,767

7,352,817

405,904

7,866,488

Other

118,295

409,686

1,368

529,349

473,881

19,763,231

4,058,945

24,296,057

By activity:

Cash

Goods

Literature

Totals

Promoting Christian missionary work via
the construction of regional headquarters

2,291,756

Distribution of Bibles and Bible-based
literature

4,058,945

Supporting regional headquarters in their
administration of Christian missionary
work

473,881

17,471,475

17,945,356

473,881

19,763,231

4,058,945

24,296,057

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

GRANTS PAYABLE - continued

Material grants (in the context of grant-making) were made to the following institutions:

Watch Tower Bible & Tract Society of South Africa
Watch Tower Bible & Tract Society, Ghana
Watch Tower Society of Jehovah's Witnesses, Nigeria
Watchtower Bible & Tract Society Of New York, Inc, United States of America
Watch Tower Bible & Tract Society Of Canada
La Torre Del Vigia, A.R., Mexico
Watch Tower Bible And Tract Society, Japan

Equivalent figures for the previous year were as follows:

By continent:

Cash

Goods

Literature

Totals

Europe

169,135

184,126

1,674

354,935

Africa

5,619,266

4,736,717

10,355,983

Asia

251,530

368,256

30,729

650,515

Americas

32,197

308,922

192,578

533,697

Other

11,246

1,015

12,261

452,862

6,491,816

4,962,713

11,907,391

By activity:

Cash

Goods

Literature

Totals

Promoting Christian missionary work via
the construction of places of worship

111,397

Promoting Christian missionary work via
the construction of regional headquarters

1,783,992

Distribution of Bibles and Bible-based
literature

4,962,713

Supporting regional headquarters in their
administration of Christian missionary
work

341,465

4,707,824

5,049,289

452,862

6,491,816

4,962,713

11,907,391

SUPPORT COSTS

Other

Producing and distributing Bible literature

4,091,548

Support costs have been allocated to producing and distributing Bible literature.

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

10.

GOVERNANCE COSTS

2011

2010

Auditors' remuneration

11,550

12,000

11.

NET INCOMING/(OUTGOING) RESOURCES

Net resources are stated after charging/(crediting):

2011

2010

Auditors' remuneration

11,550

12,000

Depreciation - owned assets

678,247

769,135

Deficit on disposal of fixed asset

8,041

9,774

12.

TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st August 2011 nor for the year
ended 31st August 2010.

The trustees confirm that they have not been involved with any transactions of the charity.

The trustees of the Society receive no payments or reimbursements in their capacity as trustees. The trustees are
also workers for IBSA, and as such they receive a monthly allowance of £96 and an annual allowance of £380
per year, along with free board and lodging from IBSA as indeed do all workers.

Trustees' Expenses
There were no trustees' expenses paid for the year ended 31st August 2011 nor for the year ended
31st August 2010.

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

13.

TANGIBLE FIXED ASSETS

Freehold

property

Plant and

machinery

Fixtures and

fittings

Motor

vehicles

Totals

COST

At 1st September 2010

285,762

8,513,538

301,454

1,705,942

10,806,696

Additions

78,256

11,192

101,877

191,325

Disposals

(21,814)

(89,622)

(23,150)

(134,586)

Reclassification

(86,950)

At 31st August 2011

198,812

8,569,980

223,024

1,784,669

10,776,485

DEPRECIATION

At 1st September 2010

44,152

4,647,698

232,567

936,993

5,861,410

Charge for year

4,088

522,406

24,106

127,647

678,247

Eliminated on disposal

(19,459)

(85,075)

(19,970)

(124,504)

Reclassification/transfer

(10,445)

At 31st August 2011

37,795

5,150,645

171,598

1,044,670

6,404,708

NET BOOK VALUE

At 31st August 2011

161,017

3,419,335

51,426

739,999

4,371,777

At 31st August 2010

241,610

3,865,840

68,887

768,949

4,945,286

14.

FIXED ASSET INVESTMENTS

Listed

investments

MARKET VALUE

At 1st September 2010

59,701,826

Additions

63,553,154

Disposals

(62,655,062)

Revaluations

(3,450,114)

At 31st August 2011

57,149,804

NET BOOK VALUE

At 31st August 2011

57,149,804

At 31st August 2010

59,701,826

Total market values of investment assets held at 31 August 2011 are analysed as follows:

Cash and

Liquid assets

Listed

investments

Unlisted

investments

Total

Investment assets in the UK

450,362

Investment assets outside the UK

5,522,984

40,454,155

10,722,303

56,699,442

5,973,346

40,454,155

10,722,303

57,149,804

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

14.

FIXED ASSET INVESTMENTS – continued

Unlisted investments are comprised of various funds and derivatives managed by professional firms and banks.
The valuations are based on the external fund managers' estimates of the underlying assets of the investment
vehicle.

15.

INVESTMENT PROPERTY

MARKET VALUE

Revaluation

93,050

Reclassification

86,950

At 31st August 2011

180,000

NET BOOK VALUE

At 31st August 2011

180,000

At 31st August 2010

Investment property has been valued by the trustees on the basis of the sale price of comparable properties in the
local area.

16.

PROGRAMME RELATED INVESTMENTS

Congregation

Loans

Loan to IBSA

Totals

MARKET VALUE

At 1st September 2010

4,534,381

6,125,000

10,659,381

Additions

2,254,485

3,000,000

5,254,485

Disposals

(1,441,577)

(9,125,000)

(10,566,577)

At 31st August 2011

5,347,289

NET BOOK VALUE

At 31st August 2011

5,347,289

At 31st August 2010

4,534,381

6,125,000

10,659,381

Loan to IBSA
These investments comprised monies advanced as a loan to a connected charity, IBSA, to assist in the purchase
of buildings, thus helping IBSA in achieving its objective of the provision of serviced facilities for the printing
and distribution of Bibles and Bible based literature and the housing of the volunteers engaged in this activity.
The  trustees  made  no  interest  charge  to  IBSA  on  the  loan,  on  the  basis  that  both  charities  have  similar
objects.The loan was fully repaid during the current financial year.

Congregation loans
These investments comprise funds loaned to congregations of Jehovah's Witnesses in Britain for the purpose of
purchasing, constructing or renovating buildings as places of worship. The ability of the congregation to repay
such  monies  is  assessed  prior  to  the  funds  being  extended.  All  such  loans  are  on  an  interest  free  basis.  These
loans enable the Society to further its aims of promoting religious education and worship.

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

17.

STOCKS

2011

2010

Raw materials

112,487

99,594

Motor vehicle spares and consumables

42,089

28,371

Bibles and other literature

1,134,263

1,019,820

1,288,839

1,147,785

18.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2011

2010

Trade debtors

943,019

1,205,729

Other debtors

358,629

677,902

Prepayments and accrued income

1,162

101,859

1,302,810

1,985,490

19.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2011

2010

Deposits (see note 21)

3,259,293

2,916,016

Trade creditors

1,243,553

2,183,794

Other creditors

381,233

342,886

Accrued expenses

7,500

11,760

4,891,579

5,454,456

20.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2011

2010

Deposits (see note 21)

29,333,633

26,244,147

Deposits comprise monies received from individuals, circuits and congregations and held with the Society until
they  have  a  need.  Based  on  previous  experience,  it  is  considered  highly  unlikely  that  the  entire  balance  of
deposits will be demanded within the next financial year.

The deposits are given on the understanding that the Society will repay them on demand. This would normally
lead to them being classified as current liabilities. If all of the cash received in respect of these loans was held as
a  current  asset,  then  this  would  be  the  accounting  policy  adopted.  However,  as  cash  accumulates  (from  all
sources,  including  deposits  received)  the  trustees  consider  it  prudent  and  cost  effective  to  make  transfers  into
fixed asset investments, both to improve security of principal and return on investment.

The  trustees  believe  that  it  would  be  prejudicial  to  the  charity's  liquidity  to  show  a  current  liability  for  the
creditor  (for  which  no  repayment  date  is  known)  and  to  show  most  of  the  resultant  asset  as  a  fixed  asset
investment. The trustees have therefore classified the deposits as long-term creditors in order to show a true and
fair view.

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

20.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued

Based on requests for repayment over recent financial years, it is anticipated that approximately 10% of deposits
held will be requested back in the next 12 months. The trustees therefore consider it prudent to class 10% of the
balance of deposits as short term creditors..

21.

LOANS

An analysis of the maturity of loans is given below:

2011

2010

Amounts falling due within one year on demand:

Deposits- due within 1 year

3,259,293

2,916,016

Amounts falling between one and two years:

Deposits- due between 1 and 5 years

32,592,926

29,160,163

Less- 10% transferred to short term creditors

(3,259,293)

(2,916,016)

29,333,633

26,244,147

22.

PROVISIONS FOR LIABILITIES

2011

2010

Conditional donations

1,331,041

1,147,542

Provision at 1 September 2010

1,147,542

Provision on new conditional donations received

216,439

Provision released on conditional donations converted into donations

(20,940)

Provision released on conditional donations repaid

(12,000)

Provision at 31 August 2011

1,331,041

Conditional donations are donations made by individuals on the understanding that they may be recalled should
the donor require such funds in the future. The donor retains an option over their donation until they die or write
to convert it into an outright donation. While it is considered probable that some of these conditional donations
will need to be repaid, it is unknown when this liability will crystallise or how large it will be. The trustees have
therefore prudently made a provision for 50% of the balance of conditional donations as shown above. £24,000
was requested back in 2011 (2010: £8,000). The remaining £1.3 million is a contingent liability.

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

23.

MOVEMENT IN FUNDS

At 1.9.10

Net movement

in funds

At 31.8.11

Unrestricted funds

General fund

36,630,092

(11,520,403)

25,109,689

Revaluation Reserve

103,495

36,630,092

(11,416,908)

25,213,184

Restricted funds

Kingdom Hall Construction Worldwide

7,786,327

1,139,702

8,926,029

Travelling Overseers Assistance Arrangement

854,487

240,644

1,095,131

Kingdom Hall Assistance Arrangement

4,704,864

268,444

4,973,308

Relief Fund

188,637

(44,958)

143,679

13,534,315

1,603,832

15,138,147

TOTAL FUNDS

50,164,407

(9,813,076)

40,351,331

Net movement in funds, included in the above are as follows:

Incoming

resources

Resources

expended

Gains and

losses

Movement in

funds

Unrestricted funds

General fund

28,424,267

(37,065,634)

(2,879,036)

(11,520,403)

Revaluation Reserve

103,495

28,424,267

(37,065,634)

(2,775,541)

(11,416,908)

Restricted funds

Kingdom Hall Construction Worldwide

1,139,702

Travelling Overseers Assistance Arrangement

349,679

(109,035)

240,644

Kingdom Hall Assistance Arrangement

457,125

(188,681)

268,444

Relief Fund

62,809

(107,767)

(44,958)

2,009,315

(405,483)

1,603,832

TOTAL FUNDS

30,433,582

(37,471,117)

(2,775,541)

(9,813,076)

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

23.

MOVEMENT IN FUNDS - continued

Travelling Overseers Assistance Arrangement
This  fund  was  formerly  named  the  Ministers  car  fund  and  was  set  up  for  the  provision  of  motor  vehicles  for
travelling ministers in the British field.

Kingdom Hall Assistance Arrangement
The Kingdom Hall    Assistance Arrangement (KHAA) exists to give aid  where losses and damages have been
suffered by congregations or individuals. Many congregations and certain individuals pay into this fund on the
understanding  that  the  Society  will  give  them  financial  assistance  in  the  event  of  loss  or  damage  to  their
property. This fund operates world wide, so that if any one local branch office of Jehovah's Witnesses is unable
to meet the demands on its  Kingdom Hall Assistance Arrangement, it can request other branches to contribute
from  their  own  KHAA  funds.  This  creates  a  contingent  liability  within  the  Society's  accounts,  limited  to  the
value of the fund locally, currently £5 million.

Kingdom Hall Construction Worldwide
This was set up to provide monies to assist with the purchase of places of worship. It was formerly known as the
Society Kingdom Hall Fund.

Relief Fund
This fund exists for the purpose of giving support to areas experiencing distress or natural disaster.

24.

RELATED PARTY DISCLOSURES

The  charity  has  close  connections  with  International  Bible  Students  Association  ("IBSA"),  which  provides
serviced facilities to Watch Tower and which is a registered charity with similar objects. IBSA also has the same
registered office as that of Watch Tower.

During  the  year,  the  IBSA  purchased  literature  from  Watch  Tower  amounting  to  £11,742,370  (2010:
£11,340,917).  At  the  year  end,  IBSA  owed  Watch  Tower  £867,833  (2010:  £1,204,150),  being  the  invoice  for
August 2011. In the prior year, an administrative error was discovered that had led to IBSA being overcharged
for  literature  for  two  years.  An  estimate  of  the  overcharge  (£1.4  million)  was  included  as  a  creditor  on  the
balance sheet for 2010. This was fully settled during the current year, therefore no amounts were outstanding at
the year-end in relation to this transaction (2011: £nil).

As  an  integral  part  of  the  charitable  activities  of  IBSA,  it  provided  Watch  Tower  with  serviced  facilities  to
enable  Watch  Tower  to  carry  out  its  charitable  activities.  During  the  year,  IBSA  charged  Watch  Tower
£4,425,669 (2010: £4,330,053) for these services. At the year end, Watch Tower owed IBSA £387,404 (2010:
£391,556) in respect of these transactions.

IBSA also had a beneficial loan from Watch Tower to assist it in achieving its objectives. The loan was made on
an  interest  free  basis,  with  no  pay  back  date.  The  loan  was  fully  paid  back  during  the  current  year  and  at  the
year-end  the  balance  stood  at  £nil  (2010:  £6,125,000).    The  interest  that  would  be  due  under  normal,
commercial rates has been estimated at £112,000 (2010: £400,000).

25.

GOING CONCERN

Following the banking crisis in 2008, the trustees have carried out a review of the stability of assets held with
banks and other financial institutions at the year end. They are satisfied that assets are held in institutions with
only the highest ratings, and no provisions other than those made in the accounts are required.

The trustees are satisfied that they have sufficient liquid funds to run the charity for the foreseeable future.

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

26.

RECONCILIATION

NET

(OUTGOING)\INCOMING

RESOURCES

NET

CASH

(OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES

2011

2010

Net (outgoing)\incoming resources

(7,037,535)

831,597

Depreciation charges

678,247

769,135

Loss on disposal of fixed assets

8,041

9,774

Interest received

(57,555)

(138,433)

Dividends received

(1,037,620)

(595,250)

Other non-cash donations received

(68,199)

(240,469)

Fixed assets donated to other charities

34,437

Increase in provisions

(183,499)

(287,385)

Movements related to investments

733,812

(342,411)

Movements on conditional donations

394,878

634,340

Increase in stocks

(141,054)

(123,512)

Decrease/(increase) in debtors

682,680

(528,630)

(Decrease)/increase in creditors

(906,154)

2,130,943

Net cash (outflow)/inflow from operating activities

(6,933,958)

2,154,136

27.

ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT

2011

2010

Returns on investments and servicing of finance

Interest received

57,555

138,433

Dividends received

1,037,620

595,250

Income kept in fixed asset investments

(1,060,827)

(706,248)

Net cash inflow for returns on investments and servicing of finance

34,348

27,435

Capital expenditure and financial investment

Purchase of tangible fixed assets

(191,325)

(322,123)

Transferred to fixed asset investments

(10,000,000)

Programme related investments advanced

(5,254,485)

(2,219,728)

Sale of tangible fixed assets

2,041

880

Programme related investments repaid

10,566,577

5,786,828

Net cash inflow/(outflow) for capital expenditure and financial
investment

5,122,808

(6,754,143)

Financing

Loans advanced by depositors

7,643,693

4,095,430

Loans repaid to depositors on demand

(4,170,611)

(3,733,240)

Net cash inflow from financing

3,473,082

362,190

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2011

28.

ANALYSIS OF CHANGES IN NET DEBT

At 1.9.10

Cash flow

At 31.8.11

Net cash:

Cash at bank and in hand

4,570,785

1,696,280

6,267,065

Debt:

Debts falling due within one year

(2,916,016)

(343,277)

(3,259,293)

Debts falling due after one year

(26,244,147)

(3,089,486)

(29,333,633)

(29,160,163)

(3,432,763)

(32,592,926)

Total

(24,589,378)

(1,736,483)

(26,325,861)

Page 3 of 5

Objective

Achievement

The printing and distribution, both in
the United Kingdom and overseas, of
Bibles and Bible-based literature in
several languages.

During the year over 329 million Bible-
based publications were printed.
Literature in 228 languages was sent
to 112 countries. The total value of
literature donated overseas exceeded
£3,000,000.

Promoting and funding the
construction of places of worship in
developing countries, and assisting
associations of Jehovah's Witnesses
overseas to promote the aims and
activities of the charity.

Over £22,000,000 was sent overseas
to assist with the construction of
places of worship, running of
administrative facilities and missionary
activity.

Supporting congregations of
Jehovah's Witnesses and others in
connection with their spiritual and
moral welfare in the United Kingdom
and overseas.

Worldwide Jehovah's Witnesses spent
over 1,748 million hours helping in the
community, over 22 million of which
were devoted to helping others here in
the United Kingdom. This was made
possible, in part, through the activities
of the charity.

Question 5 - The charity's income and spending

What were your charity's most significant activities during the year and how much did it spend
on them?

Charitable activities

£ 000s

Production of literature and magazines.

12,074

Promoting Christian missionary work.

1,163

Donating to further religious education overseas.

26,100

Explanatory comments

The costs of producing literature and magazines include £3,676,000 support costs.

What were your charity's three main fundraising activities in the year and how much did each
generate and cost?

Fundraising activity

Income

generated £ 000s

Cost of

activity £ 000s

The charity does not engage in fundraising.

Question 6 - The charity's financial health

Watch Tower Bible and Tract Society of
Britain

Report of the Trustees
for the Year Ended 31st August 2012

STRUCTURE, GOVERNANCE AND MANAGEMENT
Recruitment and appointment, induction and training of new trustees
The recruitment and induction of new trustees is arranged as follows: On an annual basis the trustees review potential
candidates.  These  are  required  to  be  appointed  as  elders  in  congregations  of  Jehovah's  Witnesses.  Their  abilities  are
evaluated  by  means  of  the  trustees'  personal  knowledge  of  the  candidates  or  by  a  "personal  qualifications  report"
provided by elders with knowledge of the individuals. Trustees are given appropriate Charity Commission publications
and  training  is  arranged  as  part  of  the  meetings  of  the  trustees  when  the  charity's  policies  are  discussed.  This  is
supplemented  by  periodic  training  provided  by  Calcutt  Matthews  when  new  legislation  affecting  the  charity  is
introduced.  Additionally,  arrangements  are  made  for  new  trustees  to  attend  a  comprehensive  course  that  includes
training in legal, organisational, and financial matters.

The  trustees  of  the  charity  also  have  key  managerial  roles  at  the  charity  headquarters.  They  meet  several  times  each
month, and are in regular contact from day to day. Trustees are elected annually, by a simple majority of the members
present at the AGM.

Organisational structure
The charity is a UK company limited by guarantee.

The trustees organise the charity into a number of departments. Each department has an experienced, trained overseer
who makes regular reports to the trustees.

Wider network
Charities with similar objects exist in many countries around the world. Throughout the year, Watch Tower Bible and
Tract Society of Britain (the Society) has continued to work closely with one such charity in Germany. Co-ordination is
through the Governing Body of Jehovah's Witnesses, located at their headquarters in the United States.

Related parties
In Britain, the Society works closely with International Bible Students Association (IBSA), which provides the Society
with  serviced  facilities  for  its  charitable  activities.  The  Society  passes  to  IBSA  the  cost  incurred  in  printing  and
distributing  the  Bible-based  religious  literature  manufactured  and  delivered  to  destinations  in  the  UK  and  EU  on  its
behalf, and all other overhead costs.

Risk management
The major risks to which the charity is exposed were reviewed by the trustees in October 2011, when the risk register
was  updated.  The  update  focused  particularly  on  events  that  would  seriously  impede  the  operations  of  the  charity.
Serious risks include catastrophic loss and failure of internal controls. Strategies and safeguards are in place to reduce,
as far as possible, the impact of those risks.

OBJECTIVES AND ACTIVITIES
Objectives and aims
The  objects  of  the  Society,  contained  in  its  Memorandum  and  Governing  document,  are  to  advance  the  Christian
religion as practiced by the body of  Christians  known as Jehovah's Witnesses. This is accomplished by the  following
specific sub-objects:
a. promoting the preaching of the gospel of God's Kingdom under Jesus Christ in all nations as a witness to the name,
word and supremacy of the Almighty God, JEHOVAH;
b. producing and distributing Bibles and other religious literature, in any medium, and educating the public in respect
thereof;
c. promoting religious worship;
d. promoting Christian missionary work;
e. advancing religious education;

Watch Tower Bible and Tract Society of
Britain

Report of the Trustees
for the Year Ended 31st August 2012

OBJECTIVES AND ACTIVITIES
Objectives and aims
The major areas of activities for the year in question have been:
1. printing and distributing Bibles and Bible-based literature in several languages, which has served to advance religious
education and educate the general public in spiritual and moral values.
2.  supporting  congregations  of  Jehovah's  Witnesses  and  others  in  Britain  with  their  spiritual  and  material  welfare,  by
advancing the Christian missionary work, which has promoted religious worship in local communities.
3.  supporting  congregations  of  Jehovah's  Witnesses  and  others  abroad,  primarily  in  developing  countries,  with  their
spiritual  and  material  welfare,  by  making  donations  to  local  associations  of  Jehovah's  Witnesses.  The  donations  have
been in the form of literature, goods, and services, as well as of funding for the construction of places of worship. All
such donations have promoted religious education overseas.

Grantmaking
The  charity's  grant  making  policy  is  as  follows:  From  time  to  time  the  charity  is  asked  by  the  Governing  Body  of
Jehovah's Witnesses to consider helping Jehovah's Witnesses in countries where a need exists. The charity first satisfies
itself  that  the  expenditure  will  further  the  religious  work  of  Jehovah's  Witnesses,  and  after  confirming  that  sufficient
funds are available, it then sends the money to the organisation caring for Jehovah's Witnesses in that country. Finally,
reports are obtained to confirm the money was properly used.

Programme related investments
Note 16 to the financial statements explains that at 31 August 2012, £7.1m (2011 £5.3m) had been lent to congregations
of Jehovah's Witnesses in Britain. These interest free loans have been advanced because the objects these congregations
are supporting accord with the objects of the Society, as shown above.

Workers and volunteers
All  who  care  for  the  work  of  the  charity  are  religious  ministers  who  are  members  of  the  Worldwide  Order  of
Special-Full-time Servants of Jehovah's Witnesses

ACHIEVEMENT AND PERFORMANCE
Charitable activities - Producing and distributing Bible literature
The charity's rotary presses have continued to produce The Watchtower and Awake! magazines, as well as other items
of Bible-based literature. In the year, over 329 million publications were printed. These included 147 million copies of
The Watchtower and Awake! magazines, which were printed in 26 and 16 languages respectively. In total, the charity
has  sent  Bible-based  literature  to  112  countries  in  228  languages.  All  of  the  literature  produced  is  used  to  advance
religious education and educate the general public in spiritual and moral values.

A heat recovery unit  has been designed and installed to the LTB afterburner,  which cleans up the emissions  from the
printing press. It is estimated that this heat recovery unit will reclaim 200 kWh per hour from the process waste heat.
This heat will be used in the heating system, contributing up to 25% of the heating load.

Charitable activities - Promoting Christian Missionary work
In  assisting  congregations  of  Jehovah's  Witnesses  and  others  in  Britain  with  their  spiritual  and  material  welfare,  the
charity  supports  over  85  travelling  ministers.  These  visit  the  congregations  on  a  regular  basis,  usually  twice  a  year,
during  which they provide pastoral care. One of the primary objectives of these  visits is  for the travelling  minister to
promote  the  Christian  missionary  work  by  providing  leadership  in  the  public  ministry  of  Jehovah's  Witnesses.
Additionally,  the  charity  supports  over  130  full-time  ministers  who  assist  congregations  to  which  the  charity  has
assigned them. The assistance provided by these ministers enables local congregations of Jehovah's Witnesses to share
fully  in  promoting  and  preaching  the  good  news  of  God's  Kingdom  and  teaching  principles  of  Christian  living.  Such
principles  include  respect  for  secular  authority,  persons,  and  property,  and  the  maintenance  of  personal  morality  and
family values and other facets of Christianity.

The charity also runs a training school for qualified ministers to better equip them to render spiritual and pastoral care in
the  community.  This  school,  the  Bible  School  for  Single  Brothers,  gives  instruction  in  Bible  teachings  and  in
organisational matters. As a result of such training, some are assigned to serve where there is a need for ministers here
in Britain,  whereas others receive assignments in foreign countries. During the  year there  were two classes held from
which  47  students  graduated.  6  of  these  students  came  from  European  countries.  Since  the  school  was  inaugurated,
1,033 students have graduated.

Watch Tower Bible and Tract Society of
Britain

Report of the Trustees
for the Year Ended 31st August 2012

Charitable activities - Making donations to further religious education overseas
During  the  year  the  charity  continued  to  provide  material  and  financial  assistance  to  Associations  of  Jehovah's
Witnesses in several countries, who are responsible for the general oversight of the activities of Jehovah's Witnesses in
that country. The aid, over £22m in total, was given to promote missionary activity, to support general costs of the local
Association, and to assist in the operation of local congregations of Jehovah's Witnesses. Additionally, literature with a
value of over £3.1m was donated overseas, mainly to Africa, for use in advancing religious education.

Public benefit
As  evidenced  above,  much  has  been  accomplished  by  the  charity  in  the  year  to  advance  its  objects  for  the  public
benefit. Literature has been produced to educate the general public in spiritual and moral values. Ministers have been
supported in aiding others to develop personal morality and family values. Places of worship have been financed which
are open to all who wish to benefit from the practical values contained in the Holy Bible. These activities bear out that
the  work  of  the  charity  continues  to  benefit  both  Jehovah's  Witnesses  and  members  of  the  community.  The  trustees
confirm  that  they  have  taken  into  consideration  Charity  Commission  guidance  on  public  benefit  in  exercising  their
powers or duties.

Internal controls
To ensure the charity is able to achieve its objectives, appropriate internal controls have been established. These ensure
that  the  monthly  financial  reports  accurately  represent  all  transactions,  provide  reasonable  assurance  that  finances  are
being  used  for their intended  purpose, and verify that proper controls and procedures are in place, and adhered to, so
that figures are recorded accurately and the accounts are in balance.

The  internal  audit  programme  has  been  achieved.  The  internal  auditor  and  his  assistant  have  a  set  agenda  to  pursue
throughout  the  year,  and  reported  in  writing  to  the  trustees  in  October  2012.  Approved  recommendations  were
implemented.

FINANCIAL REVIEW
Reserves policy
Although the charity has a consistent income base, in light of economic conditions, the trustees have arranged to work
closely  with  a  similar  charity  overseas.  In  view  of  the  resultant  good  cooperation,  it  has  been  possible  to  reduce  the
level  of  reserves  held,  while  improving  the  service  provided  to  beneficiaries.  At  the  year-end,  free  reserves  stood  at
£17,056,000, which represented 5 months of expenditure (2011: £21,288,000 and 7 months). Because the arrangement
is working so well, the trustees aim over the current year to reduce the level of reserves held. The trustees feel that such
a policy makes best use of the charity's income, and are confident that it in no way adversely affects the charity's ability
to both sustain and increase its activity.

Principal funding sources
The primary funding activity is the manufacture and distribution of Bible-based religious literature on behalf of IBSA,
the cost of which is passed on. The charity also relies to a large extent on voluntary donations to support its work, and
has  a  consistent  income  base  through  Gift  Aid.  As  mentioned  above,  the  charity  is  working  closely  with  a  similar
charity  overseas,  and  has  received  substantial  grants  from  this  charity,  which  has  committed  itself  to  provide  further
funding,  as  both  charities  work  towards  fulfilling  their  common  objectives  and  aims.  In  addition,  the  charity  has  an
active treasury management department to handle investments it has been bequeathed or converted.

Investment policy and objectives
The Memorandum and Articles, give power to invest funds in any lawful manner having full regard to the suitability of
the investments, the need for diversification, and to be a socially responsible investor having due consideration to the
beliefs of Jehovah's Witnesses. The objective is to preserve capital and achieve a real return of 4% plus inflation. The
portfolio had a positive performance on August 31, 2012 of 3.34%. Given the objective, and because of the necessity to
retain a conservative investment strategy we are happy to have achieved a real return above the inflation benchmark of
1.54%.  To  reduce  risk  the  Portfolio  was  diversified  by  currency  and  asset  class.  The  Trustees  continue  to  see  the
wisdom in holding to the current strategy favouring portfolio diversification both by asset class and currency exposure,
having adequate liquidity and investment quality.

FUTURE DEVELOPMENTS
The  charity  anticipates  being  able  to  continue  to  have  a  full  share  in  funding  the  activities  of  Jehovah's  Witnesses  in
other countries and in producing Bible-based publications.

Watch Tower Bible and Tract Society of
Britain

Report of the Trustees
for the Year Ended 31st August 2012

STATEMENT OF TRUSTEES RESPONSIBILITIES
The trustees (who are also the directors of Watch Tower Bible and Tract Society of Britain for the purposes of company
law)    are  responsible  for  preparing  the  Report  of  the  Trustees  and  the  financial  statements  in  accordance  with
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company  law  requires  the  trustees  to  prepare  financial  statements  for  each  financial  year  which  give  a  true  and  fair
view  of  the  state  of  affairs  of  the  charitable  company  and  of  the  incoming  resources  and  application  of  resources,
including  the  income  and  expenditure,    of  the  charitable  company  for  that  period.    In  preparing  those  financial
statements, the trustees are required to

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charity SORP;

make judgements and estimates that are reasonable and prudent;

state whether applicable accounting standards have been followed, subject to any material departures disclosed
and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
charitable company will continue in business.

there is no relevant audit information of which the charitable company's auditors are unaware; and

the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit
information and to establish that the auditors are aware of that information.

ON BEHALF OF THE BOARD:

J Dowson
Trustee

Date: 27 February 2013

Report of the Independent Auditors to the Members of
Watch Tower Bible and Tract Society of
Britain

We  have  audited  the  financial  statements  of  Watch  Tower  Bible  and  Tract  Society  of  Britain  for  the  year  ended
31st August 2012  on  pages  seven  to  twenty  four.  The  financial  reporting  framework  that  has  been  applied  in  their
preparation  is  applicable  law  and  United  Kingdom  Accounting  Standards  (United  Kingdom  Generally  Accepted
Accounting Practice).

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of
the  Companies  Act  2006.  Our  audit  work  has  been  undertaken  so  that  we  might  state  to  the  charitable  company's
members those  matters  we are required to state to them in an auditors' report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the
charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors
As  explained  more  fully  in  the  Statement  of  Trustees'  Responsibilities,  the  trustees  (who  are  also  the  directors  of  the
charitable company for the purposes of company law) are responsible for the preparation of the financial statements and
for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices
Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements
An  audit  involves  obtaining  evidence  about  the  amounts  and  disclosures  in  the  financial  statements  sufficient  to  give
reasonable  assurance  that  the  financial  statements  are  free  from  material  misstatement,  whether  caused  by  fraud  or
error.  This  includes  an  assessment  of:  whether  the  accounting  policies  are  appropriate  to  the  charitable  company's
circumstances  and  have  been  consistently  applied  and  adequately  disclosed;  the  reasonableness  of  significant
accounting  estimates  made  by  the  trustees;  and  the  overall  presentation  of  the  financial  statements.    In  addition,  we
read  all  the  financial  and  non-financial  information  in  the  Report  of  the  Trustees  to  identify  material  inconsistencies
with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we
consider the implications for our report.

Opinion on financial statements
In our opinion the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31st August 2012 and of its
incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

adequate accounting records have not been kept or returns adequate for our audit have not been received from
branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Nicholas Hume

Nicholas Hume FCA (Senior Statutory Auditor)
for and on behalf of Calcutt Matthews Ltd
Chartered Accountants and Statutory Auditor
19 North Street
Ashford
Kent
TN24 8LF

Date: 28 February 2013

The notes form part of these financial statements

Watch Tower Bible and Tract Society of
Britain

Statement of Financial Activities
(Incorporating an Income and Expenditure Account)
for the Year Ended 31st August 2012

2012

2011

Unrestricted

Restricted

Total

funds

Notes

INCOMING RESOURCES

Incoming resources from generated funds

Voluntary income

20,445,792

1,707,746

22,153,538

17,389,715

Investment income

1,418,333

45,460

1,463,793

1,096,871

Incoming resources from charitable activities 4

Producing and distributing Bible literature

11,737,574

11,757,244

Other incoming resources

571,053

189,752

Total incoming resources

34,172,752

1,753,206

35,925,958

30,433,582

RESOURCES EXPENDED

Costs of generating funds

Investment management costs

191,824

262,088

Charitable activities

Producing and distributing Bible literature

12,074,755

12,024,261

Promoting Christian missionary work

892,324

270,685

1,163,009

877,161

Making donations to further religious education
overseas

26,090,102

10,732

26,100,834

24,296,057

Governance costs

17,900

11,550

Total resources expended

39,266,905

281,417

39,548,322

37,471,117

NET INCOMING/(OUTGOING)
RESOURCES

(5,094,153)

1,471,789

(3,622,364)

(7,037,535)

Realised gains/(losses) on fixed asset
investments

(39,991)

(2,339,473)

Net income/(expenditure)

(5,134,144)

1,471,789

(3,662,355)

(9,377,008)

Unrealised gains/losses on investment assets

526,226

(436,068)

Net movement in funds

(4,607,918)

1,471,789

(3,136,129)

(9,813,076)

RECONCILIATION OF FUNDS

Total funds brought forward

25,213,184

15,138,147

40,351,331

50,164,407

TOTAL FUNDS CARRIED FORWARD

20,605,266

16,609,936

37,215,202

40,351,331

CONTINUING OPERATIONS
All incoming resources and resources expended arise from continuing activities.

None of the charity's activities were acquired or discontinued during the current and previous years. All gains and losses
recognised in the year are included above. The deficit for the year for Companies Act purposes, comprising the net
outgoing resources for the year together with the realised losses on investments, was £3,662,355 (2011: £9,377,008).

The notes form part of these financial statements

Watch Tower Bible and Tract Society of
Britain

Balance Sheet
At 31st August 2012

2012

2011

Unrestricted

Restricted

Total

funds

Notes

FIXED ASSETS

Tangible assets

3,549,333

861,205

4,410,538

4,371,777

Investments

Investments

45,236,327

7,000,000

52,236,327

57,149,804

Investment property

180,000

Programme related investments

7,147,878

5,347,289

48,965,660

15,009,083

63,974,743

67,048,870

CURRENT ASSETS

Stocks

944,902

1,288,840

Debtors: amounts falling due within one year

1,371,328

1,302,810

Investments

100,000

Cash at bank and in hand

7,928,496

1,600,853

9,529,349

6,267,064

10,344,726

1,600,853

11,945,579

8,858,714

CREDITORS

Amounts falling due within one year

(5,124,218)

(4,891,579)

NET CURRENT ASSETS

5,220,508

1,600,853

6,821,361

3,967,135

TOTAL ASSETS LESS CURRENT
LIABILITIES

54,186,168

16,609,936

70,796,104

71,016,005

CREDITORS

Amounts falling due after more than one year

(32,029,111)

(29,333,633)

PROVISIONS FOR LIABILITIES

(1,551,791)

(1,331,041)

NET ASSETS

20,605,266

16,609,936

37,215,202

40,351,331

FUNDS

Unrestricted funds:

General fund

20,501,771

25,109,689

Revaluation Reserve

103,495

20,605,266

25,213,184

Restricted funds

16,609,936

15,138,147

TOTAL FUNDS

37,215,202

40,351,331

The notes form part of these financial statements

Watch Tower Bible and Tract Society of
Britain

Cash Flow Statement
for the Year Ended 31st August 2012

2012

2011

Notes

Net cash outflow from operating activities

(4,397,934)

(6,933,958)

Returns on investments and servicing of finance

1,463,015

34,348

Capital expenditure and financial investment

3,019,920

5,122,808

85,001

(1,776,802)

Financing

3,177,284

3,473,082

Increase in cash in the period

3,262,285

1,696,280

Reconciliation of net cash flow to movement in
net debt

Increase in cash in the period

3,262,285

1,696,280

Cash inflow/(outflow) from increase/(decrease) in
debt and lease financing

(2,994,975)

(3,432,763)

Change in net debt resulting from cash flows

267,310

(1,736,483)

Non-cash change in current asset investment

100,000

Movement in net debt in the period

367,310

(1,736,483)

Net debt at 1st September

(26,325,862)

(24,589,379)

Net debt at 31st August

(25,958,552)

(26,325,862)

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements
for the Year Ended 31st August 2012

ACCOUNTING POLICIES

Accounting convention
The  financial  statements  have  been  prepared  under  the  historical  cost  convention,  with  the  exception  of
investments  which  are  included  at  market  value,  and  in  accordance  with  applicable  accounting  standards,  the
Companies  Act  2006  and  the  requirements  of  the  Statement  of  Recommended  Practice,  "Accounting  and
Reporting by Charities."

Donations receivable
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally
entitled  to  the  income  and  the  amount  can  be  quantified  with  reasonable  accuracy.  No  income  is  deferred.
Donations  are  from  the  public,  congregations  and  other  similar  charities.  Donations  in  the  form  of  assets  are
included at the market value on the date of the gift.

Income from Bible literature
Income  from  literature  arises  from  literature  sold  to  International  Bible  Students  Association  (IBSA),  a
connected charity, on a cost basis, in line with the charity's objects.

Legacies
Legacies are recognised at the earlier of the date of notification or being received.

Costs of generating funds
These are comprised of investment management costs incurred during the year. The charity does not engage in
fund raising.

Governance costs
Governance costs comprise external audit fees and other fees from consultants. All other administrative costs
are re-charged.

Tangible fixed assets
Fixed assets are valued at cost less depreciation. Assets costing less than £1,000 are not capitalised.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful
life:

Land

Not depreciated

Buildings

2% on cost

Plant and machinery

10%/15% on cost

Motor vehicles

25 % on reducing balance

Fixtures and fittings

10% on cost

Impairment reviews are carried out on individual assets when there is some indication that the recoverable
amount of a fixed asset is below its net book value.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in
market value is transferred to a revaluation reserve.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow
moving items.

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

ACCOUNTING POLICIES - continued

Taxation
The charity is exempt from corporation tax on its charitable activities.

Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions
arise when specified by the donor or when funds are raised for particular restricted purposes. Where a restricted
fund has fulfilled its purpose and excess funds remain, the balance will be transferred into unrestricted funds,
provided that this was understood by the donors at the time of their donation.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

•

Experience shows that only a small percentage of deposits (approximately 10%) will be called upon in
any one year;

•

Much of the cash deposited by congregations and individuals is being held for investment purposes,
and therefore has been moved into fixed asset investments in order to comply with the SORP. It would
be prejudicial to the charity's liquidity to show a current liability for the creditor (for which no
repayment date is known) and to show the resultant asset as a fixed asset investment; and

•

The total value of funds deposited is growing year on year. It is anticipated that more funds will be
deposited with the Society in the next year than will be returned to existing depositors.

Conditional donations
The charity receives some donations  where the donor reserves the right to receive the  funds back. Experience
has shown that only a small percentage is returned, but prudently the charity provides for fifty percent.

Connected charities
Transactions are on an arms length and accruals basis. Note 25 sets out the relationship with IBSA. Most other
countries have an administrative office of Jehovah's Witnesses.

Grants payable
Grants  payable  to  other  institutions  are  recognised  at  the  point  when  their  payment  has  been  approved  by  the
trustees.

Other recognised gains and losses
These comprise unrealised and realised gains and losses on investments. Unrealised gains and losses represent
the difference between the  market value brought forward (or cost, for assets bought  within this financial  year)
and the market value at the balance sheet date. Realised gains and losses represent the difference between sales
proceeds and market value brought forward (or cost, for assets bought within this financial year.)

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

ACCOUNTING POLICIES - continued

Donated literature received

Literature received is recognised as a donation when it is received, valued at the equivalent of production cost. It
is then held in stock until it is sold.

Irrecoverable VAT
Irrecoverable VAT is included in the relevant cost headings on the face of the Statement of Financial Activities
and is not shown as a separate item.

VOLUNTARY INCOME

2012

2011

Donations of literature

2,055,267

2,423,982

Legacies

977,817

2,473,858

Grants

12,139,311

5,514,047

Donations of cash and goods

6,981,143

6,977,828

22,153,538

17,389,715

INVESTMENT INCOME

2012

2011

Rents received

1,940

1,958

Investments listed on a recognised stock exchange

1,218,785

907,550

Other unlisted securities

207,692

130,070

Deposit account interest

35,376

57,293

1,463,793

1,096,871

INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

2012

2011

Activity

Income from literature sold
to IBSA

Producing and distributing Bible literature

11,737,574

11,757,244

OTHER INCOMING RESOURCES

2012

2011

Gain on sale of tangible fixed assets

130,698

Foreign currency gains

291,959

Income from recycling

148,396

189,752

571,053

189,752

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

INVESTMENT MANAGEMENT COSTS

2012

2011

Portfolio management

191,824

262,088

CHARITABLE ACTIVITIES COSTS

Direct costs

Grant funding

of activities

Support costs

Totals

(See note 8)

(See note 9)

Producing and distributing Bible literature

8,398,977

3,675,778

12,074,755

Promoting Christian missionary work

920,661

242,348

1,163,009

Making donations to further religious
education overseas

26,100,834

9,319,638

26,343,182

3,675,778

39,338,598

GRANTS PAYABLE

2012

2011

Promoting Christian missionary work

242,348

Making donations to further religious education overseas

26,100,834

24,296,057

26,343,182

24,296,057

During the year, grants paid to overseas institutions with congruous objectives can be analysed as follows:

By continent:

Cash

Goods

Literature

Totals

Europe

273,997

345,242

2,508

621,747

Africa

5,939

8,977,506

2,777,894

11,761,339

Asia

191,255

3,170,755

32,250

3,394,260

Americas

9,793,065

381,981

10,175,046

Other

388,747

2,043

390,790

471,191

22,675,315

3,196,676

26,343,182

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

GRANTS PAYABLE - continued

By activity:

Cash

Goods

Literature

Totals

Promoting Christian missionary work by
supporting local congregations

267,613

Promoting Christian missionary work via
the construction of regional headquarters
and places of worship

6,384

1,933,534

1,939,918

Distribution of Bibles and Bible-based
literature

3,196,676

Supporting regional headquarters in their
administration of Christian missionary
work

197,194

20,741,781

20,938,975

471,191

22,675,315

3,196,676

26,343,182

Material grants (in the context of grant-making) were made to the following institutions:

Watch Tower Bible & Tract Society of South Africa
Watch Tower Bible & Tract Society, Ghana
Watch Tower Society of Jehovah's Witnesses, Nigeria
Watchtower Bible & Tract Society Of New York, Inc, United States of America
Watch Tower Bible & Tract Society Of Canada
La Torre Del Vigia, A.R., Mexico
Watch Tower Bible And Tract Society, Japan

Equivalent figures for the previous year were as follows:

By continent:

Cash

Goods

Literature

Totals

Europe

305,833

140

305,973

Africa

8,438,873

3,617,785

12,056,674

Asia

247,803

3,256,022

33,748

3,537,573

Americas

107,767

7,352,817

405,904

7,866,488

Other

118,295

409,686

1,368

529,349

473,881

19,763,231

4,058,945

24,296,057

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

GRANTS PAYABLE - continued

By activity:

Cash

Goods

Literature

Totals

Promoting Christian missionary work via
the construction of regional headquarters

2,291,756

Distribution of Bibles and Bible-based
literature

4,058,945

Supporting regional headquarters in their
administration of Christian missionary
work

473,881

17,471,475

17,945,356

473,881

19,763,231

4,058,945

24,296,057

SUPPORT COSTS

Other

Producing and distributing Bible literature

3,675,778

Support costs have been allocated to producing and distributing Bible literature.

10.

GOVERNANCE COSTS

2012

2011

Auditors' remuneration

17,550

11,550

Auditors' remuneration for non-audit work

350

17,900

11,550

11.

NET INCOMING/(OUTGOING) RESOURCES

Net resources are stated after charging/(crediting):

2012

2011

Auditors' remuneration

17,550

11,550

Auditors' remuneration for non-audit work

350

Depreciation - owned assets

726,757

678,247

(Surplus)\deficit on disposal of fixed asset

(83,045)

8,041

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

12.

TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st August 2012 nor for the year
ended 31st August 2011.

The trustees confirm that they have not been involved with any transactions of the charity.

The trustees of the Society receive no payments or reimbursements in their capacity as trustees. The trustees are
also workers for IBSA, and as such they receive a monthly allowance of £96 and an annual allowance of £380
per year, along with free board and lodging from IBSA as indeed do all workers.

Trustees' Expenses
There were no trustees' expenses paid for the year ended 31st August 2012 nor for the year ended
31st August 2011.

13.

TANGIBLE FIXED ASSETS

Freehold

property

Plant and

machinery

Fixtures and

fittings

Motor

vehicles

Totals

COST

At 1st September 2011

198,812

8,569,980

223,024

1,784,669

10,776,485

Additions

110,000

32,149

55,085

912,240

1,109,474

Disposals

(168,812)

(30,049)

(26,400)

(635,212)

(860,473)

At 31st August 2012

140,000

8,572,080

251,709

2,061,697

11,025,486

DEPRECIATION

At 1st September 2011

37,795

5,150,645

171,598

1,044,670

6,404,708

Charge for year

2,765

525,012

22,968

176,012

726,757

Eliminated on disposal

(34,105)

(26,824)

(26,400)

(429,188)

(516,517)

At 31st August 2012

6,455

5,648,833

168,166

791,494

6,614,948

NET BOOK VALUE

At 31st August 2012

133,545

2,923,247

83,543

1,270,203

4,410,538

At 31st August 2011

161,017

3,419,335

51,426

739,999

4,371,777

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

14.

FIXED ASSET INVESTMENTS

Listed

investments

MARKET VALUE

At 1st September 2011

57,149,804

Additions

7,622,654

Disposals

(7,089,011)

Revaluations

526,226

Reclassification/transfer

(5,973,346)

At 31st August 2012

52,236,327

NET BOOK VALUE

At 31st August 2012

52,236,327

At 31st August 2011

57,149,804

Total market values of investment assets held at 31 August 2012 are analysed as follows:

Listed

investments

Unlisted

investments

Total

Investment assets outside the UK

41,456,379

10,779,949

52,236,328

15.

INVESTMENT PROPERTY

MARKET VALUE

At 1st September 2011 and 31st August 2012

180,000

NET BOOK VALUE

At 31st August 2012

180,000

At 31st August 2011

180,000

Investment property has been valued by the trustees on the basis of the sale price of comparable properties in the
local area.

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

16.

PROGRAMME RELATED INVESTMENTS

Congregation

Loans

Totals

MARKET VALUE

At 1st September 2011

5,347,289

Additions

4,269,979

Disposals

(2,469,390)

At 31st August 2012

7,147,878

NET BOOK VALUE

At 31st August 2012

7,147,878

At 31st August 2011

5,347,289

Congregation loans
These investments comprise funds loaned to congregations of Jehovah's Witnesses in Britain for the purpose of
purchasing, constructing or renovating buildings as places of worship. The ability of the congregation to repay
such monies is assessed prior to the funds being extended. All such loans are on an interest free basis. These
loans enable the Society to further its aims of promoting religious education and worship.

17.

STOCKS

2012

2011

Raw materials

88,726

112,488

Motor vehicle spares and consumables

29,263

42,089

Bibles and other literature

826,913

1,134,263

944,902

1,288,840

18.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2012

2011

Trade debtors

1,003,881

943,019

Other debtors

367,447

358,629

Prepayments and accrued income

1,162

1,371,328

1,302,810

19.

CURRENT ASSET INVESTMENTS

2012

2011

Land in course of disposal

100,000

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

20.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2012

2011

Deposits (see note 22)

3,558,790

3,259,293

Trade creditors

1,116,189

1,243,553

Other creditors

437,839

381,233

Accrued expenses

11,400

7,500

5,124,218

4,891,579

21.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2012

2011

Deposits (see note 22)

32,029,111

29,333,633

Deposits comprise monies received from individuals, circuits and congregations and held with the Society until
they  have  a  need.  Based  on  previous  experience,  it  is  considered  highly  unlikely  that  the  entire  balance  of
deposits will be demanded within the next financial year.

The deposits are given on the understanding that the Society will repay them on demand. This would normally
lead to them being classified as current liabilities. If all of the cash received in respect of these deposits was held
as  a  current  asset,  then  this  would  be  the  accounting  policy  adopted.  However,  as  cash  accumulates  (from  all
sources,  including  deposits  received)  the  trustees  consider  it  prudent  and  cost  effective  to  make  transfers  into
fixed asset investments, both to improve security of principal and return on investment.

The  trustees  believe  that  it  would  be  prejudicial  to  the  charity's  liquidity  to  show  a  current  liability  for  the
creditor  (for  which  no  repayment  date  is  known)  and  to  show  most  of  the  resultant  asset  as  a  fixed  asset
investment. The trustees have therefore classified the deposits as long-term creditors in order to show a true and
fair view.

Based on requests for repayment over recent financial years, it is anticipated that approximately 10% of deposits
held will be requested back in the next 12 months. The trustees therefore consider it prudent to class 10% of the
balance of deposits as short term creditors.

22.

DEPOSITS

An analysis of the maturity of deposits is given below:

2012

2011

Amounts falling due within one year on demand:

Deposits- due within 1 year

3,558,790

3,259,293

Amounts falling between one and two years:

Deposits- due between 1 and 5 years

35,587,901

32,592,926

Less- 10% transferred to short term creditors

(3,558,790)

(3,259,293)

32,029,111

29,333,633

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

23.

PROVISIONS FOR LIABILITIES

2012

2011

Conditional donations

1,551,791

1,331,041

Provision at 1 September 2011

1,331,041

Provision on new conditional donations received

269,650

Provision released on conditional donations converted into donations

(37,250)

Provision released on conditional donations repaid

(11,650)

Provision at 31 August 2012

1,551,791

Conditional donations are donations made by individuals on the understanding that they may be recalled should
the donor require such funds in the future. The donor retains an option over their donation until they die or write
to convert it into an outright donation. While it is considered probable that some of these conditional donations
will need to be repaid, it is unknown when this liability will crystallise or how large it will be. The trustees have
therefore prudently made a provision for 50% of the balance of conditional donations as shown above. £23,300
was requested back in the financial year (2011: £24,000). The remaining £1.6 million is a contingent liability.

24.

MOVEMENT IN FUNDS

At 1.9.11

Net movement

in funds

At 31.8.12

Unrestricted funds

General fund

25,109,689

(4,607,918)

20,501,771

Revaluation Reserve

103,495

25,213,184

(4,607,918)

20,605,266

Restricted funds

Kingdom Hall Construction Worldwide

8,926,029

1,279,660

10,205,689

Travelling Overseers Assistance Arrangement

1,095,131

(181,000)

914,131

Kingdom Hall Assistance Arrangement

4,973,308

357,030

5,330,338

Relief Fund

143,679

16,099

159,778

15,138,147

1,471,789

16,609,936

TOTAL FUNDS

40,351,331

(3,136,129)

37,215,202

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

24.

MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Incoming

resources

Resources

expended

Gains and

losses

Movement in

funds

Unrestricted funds

General fund

34,172,752

(39,266,905)

486,235

(4,607,918)

Restricted funds

Kingdom Hall Construction Worldwide

1,286,044

(6,384)

1,279,660

Travelling Overseers Assistance Arrangement

19,467

(200,467)

(181,000)

Kingdom Hall Assistance Arrangement

431,596

(74,566)

357,030

Relief Fund

16,099

1,753,206

(281,417)

1,471,789

TOTAL FUNDS

35,925,958

(39,548,322)

486,235

(3,136,129)

Travelling Overseers Assistance Arrangement
This  fund  was  formerly  named  the  Ministers  car  fund  and  was  set  up  for  the  provision  of  motor  vehicles  for
travelling ministers in the British field.

Kingdom Hall Assistance Arrangement
The  Kingdom  Hall  Assistance  Arrangement  (KHAA)  exists  to  give  aid  where  losses  and  damages  have  been
suffered by congregations or individuals. Many congregations and certain individuals pay into this fund on the
understanding  that  the  Society  will  give  them  financial  assistance  in  the  event  of  loss  or  damage  to  their
property. This fund operates world wide, so that if any one local branch office of Jehovah's Witnesses is unable
to meet the demands on its Kingdom Hall Assistance Arrangement, it can request other branches to contribute
from  their  own  KHAA  funds.  This  creates  a  contingent  liability  within  the  Society's  accounts,  limited  to  the
value of the fund locally, currently £5 million.

Kingdom Hall Construction Worldwide
This was set up to provide monies to assist with the purchase of places of worship. It was formerly known as the
Society Kingdom Hall Fund.

Relief Fund
This fund exists for the purpose of giving support to areas experiencing distress or natural disaster.

25.

RELATED PARTY DISCLOSURES

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

26.

GOING CONCERN

27.

RECONCILIATION OF NET OUTGOING RESOURCES TO NET CASH OUTFLOW FROM
OPERATING ACTIVITIES

2012

2011

Net outgoing resources

(3,622,364)

(7,037,535)

Depreciation charges

726,757

678,247

(Profit)/loss on disposal of fixed assets

(83,045)

8,041

Interest received

(36,538)

(57,555)

Dividends received

(1,426,477)

(1,037,620)

Other non-cash donations received

(462,809)

(68,199)

Fixed assets donated to other charities

2,730

Increase in provisions

(220,751)

(183,499)

Movements related to investments

733,812

Movements on conditional donations

516,001

394,878

Decrease/(increase) in stocks

343,938

(141,054)

(Increase)/decrease in debtors

(68,518)

682,680

Decrease in creditors

(66,858)

(906,154)

Net cash outflow from operating activities

(4,397,934)

(6,933,958)

28.

ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT

2012

2011

Returns on investments and servicing of finance

Interest received

36,538

57,555

Dividends received

1,426,477

1,037,620

Income kept in fixed asset investments

(1,060,827)

Net cash inflow for returns on investments and servicing of finance

1,463,015

34,348

Capital expenditure and financial investment

Purchase of tangible fixed assets

(999,474)

(191,325)

Purchase of fixed asset investments

(7,622,654)

Programme related investments advanced

(4,269,978)

(5,254,485)

Sale of tangible fixed assets

424,271

2,041

Sale of fixed asset investments

7,049,020

Programme related investments repaid

2,465,389

10,566,577

FA Investments transferred to cash

5,973,346

Net cash inflow for capital expenditure and financial investment

3,019,920

5,122,808

Watch Tower Bible and Tract Society of
Britain

Notes to the Financial Statements - continued
for the Year Ended 31st August 2012

28.

ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT -
continued

2012

2011

Financing

Loans advanced by depositors

8,621,455

7,643,693

Loans repaid to depositors on demand

(5,442,732)

(4,170,611)

Revaluation of deposit in Euro

(1,439)

Net cash inflow from financing

3,177,284

3,473,082

29.

ANALYSIS OF CHANGES IN NET DEBT

At 1.9.11

Cash flow

Other

non-cash

changes

At 31.8.12

Net cash:

Cash at bank and in hand

6,267,064

3,262,285

9,529,349

Liquid resources:

Current asset investments

100,000

Debt:

Debts falling due within one year

(3,259,293)

(299,497)

(3,558,790)

Debts falling due after one year

(29,333,633)

(2,695,478)

(32,029,111)

(32,592,926)

(2,994,975)

(35,587,901)

Total

(26,325,862)

267,310

100,000

(25,958,552)

Document Outline