registered company number: 136726

registered charity number: 216647

Annual Report and financial statements
Year ended 31 August 2007

International Bible Students Association

International Bible Students Association

Contents of the financial statements

For the year ended 31

August 2007

Page

Report of the Trustees

1 to 4

Report of the Independent Auditors

Statement of Financial Activities

Balance Sheet

Cash Flow Statement

Notes to the Financial Statements

9 to 13

International Bible Students Association

Report of the trustees

For the year ended 31

August 2007

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 2007. 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
136726

Registered Charity number
216647

Registered office
IBSA House
The Ridgeway
London
NW7 1RN

Trustees

S A Hardy

J S Andrews

J D Dutton

P P Bell

- appointed 22.8.07

S Papps

- appointed 22.8.07

Company Secretary
S D Smith

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

Structure, governance and management

Governing document
The charity was incorporated on 30

June 1914 and is governed by the Memorandum and Articles of Association of that date as

amended by special resolutions on 20th April 1951, 10th January 1958 and 28th November 2005 and the 4

January 2006.

Recruitment and appointment of new trustees
The Trustees of the Association who held office during the year, and at the date of this report, are set out on page 1. These trustees
have key managerial roles at the charity's headquarters. They meet weekly and are in regular contact from day to day. Trustees are
elected annually by a simple majority of the members present at the AGM.

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. 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 the auditors.

International Bible Students Association

Report of the trustees

For the year ended 31

August 2007

Structure, governance and management…continued

Induction and training of new trustees
Trustees are given Charity Commission publications and are sent on a two month course which includes training in legal and
financial matters.

Organisational structure
The charity is constituted as a company limited by guarantee.

The trustees organise the running of the charity through a number of departments. Each department is headed up by a trained and
experience department overseer who will make regular reports to the Trustees.

Wider network
The charity is responsible for the spiritual welfare of Jehovah's Witnesses in Britain and those studying the Christian faith. Similar
charities exist in many countries around the world. Co-ordination of spiritual affairs is through the World Headquarters in the U.S.A.

Related parties
The Association works closely with Watch Tower Bible and Tract Society of Britain (Watch Tower). It provides volunteers for
Watch Tower to use in its activities. It permits Watch Tower to use its facilities for the Watch Tower's charitable work and provides
accommodation for the volunteers. A service and maintenance charge is made which includes the cost of the volunteers. The
Association purchases religious material from Watch Tower and donates this to congregations of Jehovah's Witnesses.

Risk management
The major risks to which the charity is exposed have been formally 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. The
risk register was updated most recently in August 2007. The principal risks addressed were Disaster recovery and planning; Failure
to comply with legal requirements on health and safety, fire, environment, waste; Construction projects; Contamination of food.

Objectives and activities

Objectives and aims
The object of the Association is to promote the Christian religion by supporting congregations of Jehovah's Witnesses and others in
connection with their spiritual and material welfare in Britain and abroad within the charitable purposes of the Association. This is
achieved mainly by 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. In addition, religious literature is purchased and distributed free of charge. Conventions for
Christian education are arranged on an annual basis.

Significant activities
Since the completion of our major building projects, it has been possible to sell off some of the residential properties used to house
volunteers engaged on those projects and repay a substantial part of a loan made to us by Watch Tower Society. At the same time, a
review of the operating costs of our farm led to the decision to close that leased facility on economic grounds, and this will be
implemented by October 2008. There is a consistent demand for the religious literature we purchase from Watch Tower Society, and
the cost of our providing this has increased.

Grant making
Our grant making policy is as follows. From time to time we are asked by the Governing Body of Jehovah's Witnesses to consider
helping Jehovah's Witnesses in countries where a need exists. We first consider whether the budget permits. If this is the case we
satisfy ourselves that the expenditure will further the religious work of Jehovah's Witnesses and we then send the money to the
organisation caring for Jehovah's Witnesses in that country. Finally, we obtain reports to confirm the money was properly used.

Volunteers
The charity is run entirely by trained, unpaid volunteers and it is appropriate that we here express appreciation for their tireless
efforts, resulting in a significant financial benefit to the charity. The basis for the care of their material needs is explained in note 9
of the accounts.

International Bible Students Association

Report of the trustees

For the year ended 31

August 2007

Achievement and performance

Charitable activities
Provision of literature for Bible education
The literature we donate to congregations of Jehovah's Witnesses plays a pivotal role in their Bible teaching activity. This activity
reached out to the communities in the area covered by the congregations resulting in 52,032 families and individuals receiving
instruction in their own homes. 1,200 tonnes of Bible literature were donated to congregations in the UK. Campaigns were mounted
to invite the general public to important annual events. A total of 112 million invitations were distributed to congregations in the
UK and overseas. A special effort is being made to provide literature and teaching facilities for ones who learn better in another
language.

Conventions for Bible education
These summer conventions were again well attended; the total of almost 154,000 was up on last year. Conventions were held in
three additional languages. The delegates at the British Sign Language convention were delighted to receive three new Bible drama
DVDs in BSL that we had purchased for them from Watch Tower Society.

Overseas aid
We had adequate funds to be able to respond to all of the requests received from the Governing Body of Jehovah's Witnesses, in
connection with lands where the economy is poor. The total of £3,945,000 included our donating property worth £2.14 million to
Jehovah's Witnesses in Uganda.

Fundraising activities
Because of the consistent support we enjoy from congregations of Jehovah's Witnesses, we do not engage in fundraising activities as
such. We include a reminder about methods of donating, either in our monthly letter of thanks to congregations, or in our internal
newsletter prior to the annual conventions. We find this to be adequate. We do make an "at-cost" charge to Watch Tower Society
for giving them printery, warehouse and domestic accommodation, which does generate funds of course.

Investment performance
Just before the year end the charity made the decision to sell off its investments to help clear loan obligations. The trustees are
satisfied with the results for the year.

Internal Controls
These controls 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
the figures are recorded accurately and accounts are in balance. The internal audit programme has been achieved. The internal auditor
and his assistant, both drawn from the volunteer workforce, have a set agenda to pursue through the year and reported again in
writing to the Trustees in October 2007. Approved recommendations were implemented.

Financial review

Reserves policy
The Association has free reserves of approximately £6 million. The Association has a reliable donation base, being primarily the
1,517 congregations of Jehovah's Witnesses in the UK. Hence, we can plan confidently with relatively small reserves, having in mind
that we charge Watch Tower Society for the cost of running the HQ complex and we respond to the needs for funds overseas only
after filling our domestic requirements. Our established policy is to ensure that we have on hand in liquid funds at least three months'
working expenditure. At the year end, liquid assets on hand equate to 6 months of expenditure (2006: 7 months).

Principal funding sources
The charity is funded by donations, legacies and payment from Watch Tower Society; the latter covers the cost of operating the
headquarters complex.

Future developments

The workload of Watch Tower Society continues to increase, and we are prepared to provide whatever facilities they need to care for
their work. There is a growing demand for funds in the less-developed parts of the world, and we aim to be able to respond to
anticipated further requests from the Governing Body of Jehovah’s Witnesses.
The upcoming London Emissions Zone legislation comes into effect in February 2008. This requires us to replace some vehicles to
meet the Euro 4 specification, involving a possible outlay of £60,000.

International Bible Students Association

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 Association 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 Association’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 Association’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

John Andrews
Trustee

Date: 2

January 2008

International Bible Students Association

Report of the independent auditors to the members of
International Bible Students Association

For the year ended 31

August 2007

We have audited the financial statements of International Bible Students Association 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
six to thirteen.

This report is made solely to the Association'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 Association’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 Association and the Association'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 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 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 Association 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 Association'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 Association’s affairs as at 31 August 2007 and of its surplus 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: 3

January 2008

International Bible Students Association

Statement of financial activities

For the year ended 31

August 2007

31.8.07

31.8.06

Unrestricted

Total

funds

Notes

£'000

Incoming resources

Incoming resources from generated funds

Voluntary income

8,789

9,996

Activities for generating funds

3,916

3,898

Investment income

307

185

Total incoming resources

13,012

14,079

Resources expended

Costs of generating funds

Cost of generating funds

3,819

3,830

Charitable activities

Provision of literature for Bible education

6,574

5,576

Provision of conventions for Bible education

653

642

Donations and aid overseas

3,945

1,438

Governance costs

Total resources expended

15,012

11,505

Net (outgoing)/incoming resources

(2,000)

2,574

Other recognised gains/losses

Gains on sale of tangible fixed assets and investments

4,158

924

Net movement in funds

2,158

3,498

Reconciliation of funds

Total funds brought forward

47,309

43,811

Total funds carried forward

49,467

47,309

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 sales of tangible fixed assets and investments of £2,157,995 (2006: £3,307,690).

International Bible Students Association

Balance sheet

For the year ended 31

August 2007

31.8.07

31.8.06

Unrestricted

Total

funds

Notes

£'000

Fixed assets

Tangible assets

53,540

59,673

Current assets

Stocks

141

147

Debtors: amounts falling due within one year

343

661

Investments

4,922

Cash at bank and in hand

6,217

1,796

6,701

7,526

Creditors

Amounts falling due within one year

(605)

(740)

Net current assets

6,096

6,786

Total assets less current liabilities

59,636

66,459

Creditors

Amounts falling due after more than one year

(10,169)

(19,150)

Net assets

49,467

47,309

Funds

Unrestricted funds

49,467

47,309

Total funds

49,467

47,309

The financial statements were approved by the Board of Trustees on 2

January 2008 and were signed on its behalf by:

J D Dutton
Trustee

John Andrews
Trustee

International Bible Students Association

Cash flow statement

For the year ended 31

August 2007

2007

2006

Notes

£000

Net cash (outflow)/inflow from operating activities 18

(13)

4,081

Returns on investments and servicing of finance

4,922

(700)

Capital expenditure & financial investment

(488)

(3,346)

Increase in cash in the period

4,421

Reconciliation Of Net Cash Flow To

Movement In Net Funds

Increase in cash in the period

4,421

Movement In Net Funds In The Period

Net Funds At 1st September 2006

1,796

1,761

Net Funds At 31st August 2007

6,217

1,796

Increase in cash in the period

4,421

International Bible Students Association

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 current asset
investments which were held 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 with the
exception of current assets which were held at market value.

Cost of generating funds
Costs of generating funds comprises the costs of providing and maintaining accommodation and associated support costs for
the purpose of the charge referred to in the Activities for Generating funds policy above.

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 the trustees approve the expenditure.

From time to time the trustees review whether properties held overseas might better be transferred to a local branch.

Support costs
The charity runs IT, legal and treasury departments. The Support cost are allocated to the relevant Charitable activity by
computer usage.

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

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 the 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 comprise Electrical, Maintenance, Home and Farm supplies .and are valued at the lower of cost and net realisable
value, after making due allowance for obsolete and slow moving items.

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.

The charity has no restricted funds.

International Bible Students Association

Notes to the financial statements - Continued

For the year ended 31

August 2007

Voluntary income

31.8.07

31.8.06

£'000

£'000

Cash Donations

7,586

7,217

Freehold property donated

1,838

Legacies

1,203

941

8,789

9,996

Activities for generating funds

31.8.07

31.8.06

£'000

£'000

Service charge income

3,916

3,898

Investment income

31.8.07

31.8.06

£'000

£'000

Interest & dividends receivable

307

185

Cost of generating funds

31.8.07

31.8.06

£'000

£'000

Cost of accommodation and housing volunteers

3,819

3,830

The charity housed 581 (2006:587) volunteers engaged full time in the year.

Charitable activities costs

31.08.07

31.08.06

£'000

Provision of literature for Bible education

6,574

5,576

Provision of conventions for Bible education

653

642

Donations and aid overseas*

3,945

1,438

11,172

7,656

*In 2007 this includes the donation of freehold property that had been owned by the charity to Uganda branch of Jehovah’s

Witnesses.

Governance costs

31.8.07

31.8.06

£'000

£'000

Other professional fees

Auditors' remuneration

Net incoming/(outgoing) resources

Net resources are stated after charging/(crediting):

31.8.07

31.8.06

£'000

£'000

Auditors' remuneration

Depreciation - owned assets

1,141

1,113

International Bible Students Association

Notes to the financial statements - Continued

For the year ended 31

August 2007

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 Association has close
connections with Watch Tower Bible & Tract Society of Britain, referred to as "Watch Tower" , which prints Bible based
literature and which is a registered charity with similar objects. This charity also has the same registered office as that of the
Association.

The trustees of IBSA receive no payments or reimbursements in their capacity as trustees. The trustees are also volunteer
workers at the Association'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. These expenses are charged on to the Watch
Tower Bible and Tract Society of Britain (charity registration number 1077961) a connected charity as explained in the
Trustees’ Report.

Trustees' Expenses

There were no trustees' expenses paid neither for the year ended 31 August 2007 nor 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

67,511

1,058

456

69,025

Additions

3,037

577

3,614

Disposals

(9,148)

(33)

(73)

(9,254)

At 31 August 2007

61,400

1,602

383

63,385

Depreciation

At 1 September 2006

8,550

581

221

9,352

Charge for year

910

183

1,141

Eliminated on disposal

(561)

(35)

(52)

(648)

At 31 August 2007

8,899

729

217

9,845

Net book value

At 31 August 2007

52,501

873

166

53,540

At 31 August 2006

58,961

477

235

59,673

The trustees are of the opinion that the market value of land and building was in the order £76.6 million. This figure is based
on the trustees knowledge of the value of comparative properties held locally.

11.

Stocks

31.8.07

31.8.06

£'000

£'000

Stocks - Electrical, Maintenance, Home and Farm supplies

141

147

International Bible Students Association

Notes to the financial statements - Continued

For the year ended 31

August 2007

12.

Debtors: amounts falling due within one year

31.8.07

31.8.06

£'000

£'000

Trade debtors

Other debtors

149

141

Due from connected charity

184

518

343

661

13.

Current asset investments

2007

2006

£'000

Listed investments at market value

4,922

At the 31st August 2007 the charity transferred its investments to Watch Tower Society at market value, as part-payment of
the loan owed to Watch Tower Society.

14.

Creditors: amounts falling due within one year

31.8.07

31.8.06

£'000

£'000

Trade creditors

Social security and other taxes

Other creditors

134

114

Due to connected charity

329

521

605

740

15.

Creditors: amounts falling due after more than one year

31.8.07

31.8.06

£'000

£'000

Other loans (see note 16)

482

Loan from connected charity*

10,169

18,668

10,169

19,150

* The loan is from Watch Tower, a connected charity identified in note 9. The loan was made to assist the charity with the
purchase of buildings. During the year IBSA sold buildings it no longer required and therefore repaid a significant element
of the loan.

The trustees wish to express their indebtedness to Watch Tower trustees for providing the loan interest free. The trustees of
Watch Tower are of the opinion that in view of the fact that the objectives of Watch Tower are similar to those of IBSA that
they can treat the interest element as a donation.

16.

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:

Merrill Lynch- 1-2 years

482

International Bible Students Association

Notes to the financial statements - Continued

For the year ended 31

August 2007

17.

Movement in funds

At 1.9.06

Net movement

in funds

At 31.8.07

£'000

Unrestricted funds

General fund

47,309

2,158

49,467

Total funds

47,309

2,158

49,467

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

13,012

(15,012)

4,158

2,158

Total funds

13,012

(15,012)

4,158

2,158

18.

Net cash (outflow)/inflow from operating activities

31.08.07

31.08.06

£000

£000

Net incoming resources and investment gains

2,158

3,308

Decrease in stocks

Decrease in debtors

318

364

(Decrease)/Increase in creditors

(135)

(735)

Loss/(Profit) on sale of assets

(3,501)

Depreciation

1,141

1,112

£(13)

£4,081

19.

Returns on investments and servicing of finance

31.08.07

31.08.06

£000

£000

Sale/(Purchase)of investments

4,922

(700)

20.

Capital expenditure and financial investment

31.08.07

31.08.06

£000

£000

Purchase of tangible fixed assets

(3,614)

(2,827)

Sale proceeds of tangible fixed assets

12,107

150

Loan repaid

(8,981)

(2,369)

Loan advances

1,700

(488)

(3,346)

registered company number: 136726

registered charity number: 216647

Annual Report and financial statements

Year ended 31 August 2008

International Bible Students Association

Contents of the financial statements

For the year ended 31

August 2008

Page

Report of the Trustees

1 to 4

Report of the Independent Auditors

Statement of Financial Activities

Balance Sheet

Cash Flow Statement

Notes to the Cash Flow Statement

Notes to the Financial Statements

10 to 14

International Bible Students Association

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
136726

Registered Charity number
216647

Registered office
IBSA House
The Ridgeway
London
NW7 1RN

Trustees

S A Hardy

J S Andrews

J D Dutton

P P Bell

S Papps

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 was incorporated on 30th June 1914 and is governed by the Memorandum and Articles of Association of that date as
amended by special resolutions on 20th April 1951, 10th January 1958 and 28th November 2005 and 4th January 2006.

Recruitment and appointment of new trustees
The Trustees of the Association who held office during the year, and at the date of this report, are set out above. These trustees have
key managerial roles at the charity's headquarters. They meet weekly and are in regular contact from day to day. Trustees are elected
annually by a simple majority of the members present at the AGM.

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. 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 the auditors.

International Bible Students Association

Report of the trustees

For the year ended 31

August 2008

Structure, governance and management

Induction and training of new trustees
Trustees are given Charity Commission publications and are sent on a two month course which includes training in legal and
financial matters.

Organisational structure
The charity is constituted as a company limited by guarantee.
The trustees organise the running of the charity through a number of departments. Each department is headed up by a trained and
experience department overseer who will make 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
The Association works closely with Watch Tower Bible and Tract Society of Britain (Watch Tower). It provides volunteers for
Watch Tower to use in its activities. It permits Watch Tower to use its facilities for the Watch Tower's charitable work and provides
accommodation for the volunteers. A service and maintenance charge is made which includes the cost of the volunteers. The
Association purchases religious material from Watch Tower and donates this to congregations of Jehovah's Witnesses.

Risk management
The major risks to which the charity is exposed have been formally 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. The
risk register was updated most recently in August 2007. The principal risks addressed were Disaster recovery and planning; Failure
to comply with legal requirements on health and safety, fire, environment, waste; Construction projects; Contamination of food.

Objectives and activities

Objectives and aims
The object of the Association is to promote the Christian religion by supporting congregations of Jehovah's Witnesses and others in
connection with their spiritual and material welfare in Britain and abroad within the charitable purposes of the Association. This is
achieved mainly by 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. In addition, religious literature is purchased and distributed free of charge. Conventions for
Christian education are arranged on an annual basis.

Significant activities
There is an increasing demand for the religious literature we purchase from Watch Tower Society, hence the cost of our providing
this has risen. The decision to close our farm operations on economic grounds has been implemented. In this connection having
considered the guidance from the Charity Commission, the Trustees' powers in the memorandum of association, the history of the
tenancy and the intention of the parties, the probable outcome and the balance of likely advantage to the charity in the light of the
legal strength of our claim, the cost of pursuing it and the ability of the other party to pay, it was decided, in the best interests of the
charity, not to seek to enforce our potential legal entitlements (1) under the 1989 agreement or (2) to compensation for surrender of
subsidies, in the total sum of £52,000.

Grantmaking
Our grant making policy is as follows. From time to time we are asked by the Governing Body of Jehovah's Witnesses to consider
helping Jehovah's Witnesses in countries where a need exists. We first consider whether the budget permits. If this is the case we
satisfy ourselves that the expenditure will further the religious work of Jehovah's Witnesses and we then send the money to the
organisation caring for Jehovah's Witnesses in that country. Finally, we obtain reports to confirm the money was properly used.

Volunteers
The charity is run entirely by trained, unpaid volunteers and it is appropriate that we here express appreciation for their tireless
efforts, resulting in a significant financial benefit to the charity. The basis for the care of their material needs is explained in note 9
of the accounts.

Achievement and performance

International Bible Students Association

Report of the trustees

For the year ended 31

August 2008

Conventions for Bible education
These summer conventions were again well attended; the total of almost 153,451 was up on last year. 245,000 copies of new Bible
study aid "Keep Yourselves in God's Love" were distributed without charge at the conventions. A similar number of the book
"Questions Young People Ask - Answers that Work" (volume 2) were likewise distributed, and eagerly received.

Achievement and performance

Overseas aid
We had adequate funds to be able to respond to all of the requests received from the Governing Body of Jehovah's Witnesses, in
connection with lands where the economy is poor. The total was £1,089,000.

Fundraising activities
Because of the consistent support we enjoy from congregations of Jehovah's Witnesses, we do not engage in fundraising activities as
such. We include a reminder about methods of donating, either in our monthly letter of thanks to congregations, or in our internal
newsletter prior to the annual conventions. We find this to be adequate. We do make an "at-cost" charge to Watch Tower Society
for giving them printery, warehouse and domestic accommodation, which does generate funds of course.

Investment performance
The trustees are satisfied with the results for the year. Money is held in first class banks, with the bulk in liquidity funds that are
protected or "ring fenced" in the event of bank failure.

Internal factors
These controls 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
the figures are recorded accurately and accounts are in balance. The internal audit programme has been achieved. The internal auditor
and his assistant, both drawn from the volunteer workforce, have a set agenda to pursue through the year and reported again in
writing to the Trustees in October 2008. Approved recommendations were implemented.

Financial review

Reserves policy
The Association has free reserves of approximately £7.9 million. The Association has a reliable donation base, being primarily the
1,517 congregations of Jehovah's Witnesses in the UK. Hence, we can plan confidently with relatively small reserves, having in mind
that we charge Watch Tower Society for the cost of running the HQ complex and we respond to the needs for funds overseas only
after filling our domestic requirements. Our established policy is to ensure that we have on hand in liquid funds at least three months'
working expenditure. At the year end, liquid assets on hand equate to 7 months of expenditure (2007: 6 months).

Principal funding sources
The charity is funded by donations and legacies. Also payments from Watch Tower Society cover the cost of operating the
headquarters complex.

Future developments

We are planning to enhance our office facilities to allow more space for Watch Tower Society to expand its work of translating
religious literature.

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.

International Bible Students Association

Report of the trustees

For the year ended 31

August 2008

Statement of trustees’ responsibilities...continued

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:

Stephen A Hardy
Trustee

Date: January 7, 2009

International Bible Students Association

Report of the Independent Auditors to the Members of
International Bible Students Association

For the year ended 31

August 2008

We have audited the financial statements of International Bible Students Association for the year ended 31 August 2008 on pages six
to fourteen. 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 three.

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: 8 January 2009

International Bible Students Association

Statement of financial activities

For the year ended 31

August 2008

31.8.08

31.8.07

Total

funds

Notes

£'000

Incoming resources

Incoming resources from generated funds

Voluntary income

7,747

8,789

Investment income

434

307

Incoming resources from charitable activities

Provision of working and residential
accommodation

3,782

3,916

Other incoming resources

1,474

3,501

Total incoming resources

13,437

16,513

Resources expended

Charitable activities

Provision of literature for Bible education

7,033

6,574

Provision of conventions for Bible education

643

653

Donations and aid overseas

1,089

3,945

Provision of working and residential
accommodation

3,684

3,819

Governance costs

Total resources expended

12,462

15,012

Net incoming resources

975

1,501

Other recognised gains/losses

Gains/(losses) on investment assets

657

Net movement in funds

976

2,158

Reconciliation of funds

Total funds brought forward

49,467

47,309

Total funds carried forward

50,443

49,467

Continuing operations

International Bible Students Association

Balance sheet

For the year ended 31

August 2008

31.8.08

31.8.07

Total

funds

Notes

£'000

Fixed assets

Tangible assets

52,671

53,540

Current assets

Stocks

115

141

Debtors: amounts falling due within one year

319

343

Investments

188

Cash at bank and in hand

7,801

6,217

8,423

6,701

Creditors

Amounts falling due within one year

(482)

(605)

Net current assets

7,941

6,096

Total assets less current liabilities

60,612

59,636

Creditors

Amounts falling due after more than one year

(10,169)

Net assets

50,443

49,467

Funds

Unrestricted funds

50,443

49,467

Total funds

50,443

49,467

The financial statements were approved by the Board of Trustees on January 7, 2009 and were signed on its behalf by:

Stephen A Hardy
Trustee

John Andrews
Trustee

International Bible Students Association

Cash flow statement

For the year ended 31

August 2008

31.8.08

31.8.07

Notes

£'000

Net cash (outflow)/inflow from operating activities

(312)

3,945

Returns on investments and servicing of finance

434

(8,674)

Capital expenditure and financial investment

1,462

9,150

Increase in cash in the period

1,584

4,421

Reconciliation of net cash flow to movement in net
debt

Increase in cash in the period

1,584

4,421

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

188

(4,922)

Cash outflow from decrease in debt

483

Change in net debt resulting from cash flows

1,772

(18)

Movement in net debt in the period

1,772

(18)

Net debt at 1 September

6,217

6,235

Net debt at 31 August

7,989

6,217

International Bible Students Association

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

£'000

Net incoming resources

975

1,501

Depreciation charges

882

1,141

Surplus on disposal of tangible fixed assets

(1,474)

(3,501)

Interest received

(434)

(307)

(Increase)/ Decrease in investments

(188)

4,922

Decrease in stocks

Decrease in debtors

318

Decrease in creditors

(123)

(135)

Net cash (outflow)/inflow from operating activities

(312)

3,945

Analysis of cash flows for headings netted in the Cash Flow statement

31.8.08

31.8.07

£'000

Returns on investments and servicing of finance

Interest received

434

307

Loan repaid

(8,981)

Net cash inflow/(outflow) for returns on investments and servicing of
finance

434

(8,674)

al expenditure and financial investment

Purchase of tangible fixed assets

(757)

(3,614)

Sale of tangible fixed assets

2,218

12,107

Sale of investment property

657

Net cash inflow for capital expenditure and financial investment

1,462

9,150

Analysis of changes in net debt

At 1.9.07

Cash flow

At 31.8.08

£'000

Net cash:

Cash at bank and in hand

6,217

1,584

7,801

Liquid resources:

Current asset investments

188

Total

6,217

1,772

7,989

International Bible Students Association

Notes to the financial statements

For the year ended 31

August 2008

Accounting policies

Accounting convention
The financial statements have been prepared under the historical cost convention, 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.

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. 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 comprise Electrical, Maintenance, Home and Farm supplies are valued at the lower of cost and net realisable value,
after making due allowance for obsolete and slow moving items.

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.

The charity has no restricted funds.

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

Voluntary income

31.8.08

31.8.07

£'000

Cash Donations

7,147

7,586

Legacies

600

1,203

7,747

8,789

International Bible Students Association

Notes to the financial statements

For the year ended 31

August 2008

Investment income

31.8.08

31.8.07

£'000

Current asset investment income

434

307

Incoming resources from charitable activities

2008

2007

£'000

Provision of working and residential accommodation

3,782

3,916

Other incoming resources

31.8.08

31.8.07

£'000

Surplus on disposal of tangible fixed assets

1,474

3,501

During 2008 the charity made a surplus on the sale of flats at Brecon Court of £1,473,806. In 2007 the charity made a
surplus of £3,501.321on the sale of Daniel Court and Grenville Place properties. All of these properties had been used to
house volunteers.

Charitable activities costs

Direct costs

Totals

£'000

Provision of literature for Bible education

7,033

Provision of conventions for Bible education

643

Donations and aid overseas

1,089

Provision of working and residential accommodation

3,684

12,449

The charity does not incur any support costs.

Governance costs

31.8.08

31.8.07

£'000

Other professional fees

Auditors' remuneration
Other services provided by external auditors

4
4

Net incoming/(outgoing) resources

Net resources are state after charging/(crediting):

31.8.08

31.8.07

£'000

Auditors' remuneration

Other services provided by the external auditors

Depreciation

882

1,141

Surplus on disposal of tangible fixed assets

(1,474)

(3,501)

International Bible Students Association

Notes to the financial statements

For the year ended 31

August 2008

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 Association has close
connections with Watch Tower Bible & Tract Society of Britain, referred to as "Watch Tower" , which prints Bible based
literature and which is a registered charity with similar objects. This charity also has the same registered office as that of the
Association.

The trustees of IBSA receive no payments or reimbursements in their capacity as trustees. The trustees are also volunteer
workers at the Association'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. These expenses are paid by the Watch Tower
Bible and Tract Society of Britain (charity registration number 1077961) a connected charity as explained in note 10 above.

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

10.

Tangible fixed assets

Land &

Buildings

Plant and

machinery

Motor vehicles

Totals

£'000

Cost

At 1 September 2007

61,400

1,602

383

63,385

Additions

317

279

161

757

Disposals

(862)

(157)

(102)

(1,121)

At 31 August 2008

60,855

1,724

442

63,021

Depreciation

At 1 September 2007

8,898

729

218

9,845

Charge for year

709

118

882

Eliminated on disposal

(158)

(134)

(85)

(377)

At 31 August 2008

9,449

713

188

10,350

Net book value

At 31 August 2008

51,406

1,011

254

52,671

At 31 August 2007

52,502

873

165

53,540

11.

Stocks

31.8.08

31.8.07

£'000

Stocks - Electrical, Maintenance, Home and Farm supplies

115

141

International Bible Students Association

Notes to the financial statements

For the year ended 31

August 2008

12.

Debtors: amounts falling due within one year

31.8.08

31.8.07

£'000

Trade debtors

Other debtors

131

149

Due from connected charity

184

319

343

13.

Current asset investments

2008

2007

£'000

UK Listed investments at market value

188

14.

Creditors: amounts falling due within one year

31.8.08

31.8.07

£'000

Trade creditors

Social security and other taxes

Other creditors

107

134

Due to connected charity

279

329

482

605

15.

Creditors: amounts falling due after more than one year

31.8.08

31.8.07

£'000

Loan from connected charity*

10,169

* The loan is from Watch Tower, a connected charity identified in note 9. The loan was made to assist the charity with the
purchase of buildings. After the year end IBSA repaid £2 million of this loan.

The trustees wish to express their indebtedness to Watch Tower trustees for providing the loan interest free. The trustees of
Watch Tower are of the opinion that in view of the fact that the objectives of Watch Tower are similar to those of IBSA, they
can treat the waived interest element as a donation.

International Bible Students Association

Notes to the financial statements

For the year ended 31

August 2008

16.

Movement in funds

At 1.9.07

Net movement

in funds

At 31.8.08

£'000

Unrestricted funds

General fund

49,467

976

50,443

Total funds

49,467

976

50,443

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

13,437

(12,462)

976

Total funds

13,437

(12,462)

976

17.

Post balance sheet events

In October 2008 the charity made a £2 million repayment on the loan from Watch Tower (described in note 15)

The trustees are pleased to be able to report that at the date of approving the accounts, none of the charity’s bankers have
failed. 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 they have made.

18.

Related party transactions

The Association has close connections with Watch Tower Bible & Tract Society of Britain, referred to as "Watch Tower",
which prints Bible based literature and which is a registered charity with similar objects. This charity also has the same
registered office as that of the Association.

registered company number: 136726

registered charity number: 216647

Annual report and financial statements

Year ended 31 August 2009

International Bible Students Association

International Bible Students Association
Contents of the Financial Statements
For the Year Ended 31

August 2009

Page

Report of the Trustees

3 to 6

Report of the Independent Auditors

Statement of Financial Activities

Balance Sheet

Cash Flow Statement

Notes to the Financial Statements

11 to 16

International Bible Students Association
Report of the Trustees

For the Year Ended 31

August 2009

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial
statements of the charity for the year ended 31 August 2009. 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
136726

Registered Charity number
216647

Registered office
IBSA House
The Ridgeway
London
NW7 1RN

Trustees

S A Hardy

J S Andrews

J D Dutton

P P Bell

S Papps

Statutory 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

Structure, governance and management

Recruitment and appointment of new trustees
The Trustees of the Association who held office during the year, and at the date of this report, are set out above. These trustees have
key managerial roles at the charity's headquarters. They meet weekly and are in regular contact from day to day. Trustees are elected
annually by a simple majority of the members present at the AGM.

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. 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 the auditors.

International Bible Students Association
Report of the Trustees

For the Year Ended 31

August 2009

Structure, governance and management

Induction and training of new trustees
Trustees are given Charity Commission publications and are sent on a two month course which includes training in legal and
financial matters.

Organisational structure
The charity is constituted as a company limited by guarantee.

The trustees organise the running of the charity through a number of departments. Each department is headed up by a trained and
experienced department overseer who will make 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
The Association works closely with Watch Tower Bible and Tract Society of Britain (Watch Tower). It provides volunteers for
Watch Tower to use in its activities. It permits Watch Tower to use its facilities for Watch Tower's charitable work and provides
accommodation for the volunteers. A service and maintenance charge is made which includes the cost of the volunteers. The
Association purchases religious material from Watch Tower and donates this to congregations of Jehovah's Witnesses.

Risk management
The major risks to which the charity is exposed have been formally 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. The
risk register was updated most recently in August 2007. The principal risks addressed were Disaster recovery and planning; Failure
to comply with legal requirements on health and safety, fire, environment, waste; Construction projects; Contamination of food.

Public Benefit

The Trustees confirm that they taken into consideration Charity Commission guidance on public benefit in exercising their powers
and duties, and this is amply demonstrated in the report that follows, in particular:

Bible literature we have supplied without charge to congregations of Jehovah’s Witnesses in the UK, has been distributed,
gratis, by those congregations, to interested members of the public in their local communities, in the following quantities:
16,800,000 copies of Watchtower and Awake! and 1,244,000 Bibles and Bible study aids.

Our conventions for Bible education were widely advertised by personal invitations delivered to the public nationwide.

Objectives and activities

Grant making
Our grant making policy is as follows. From time to time we are asked by the Governing Body of Jehovah's Witnesses to consider
helping Jehovah's Witnesses in countries where a need exists. We first consider whether the budget permits. If this is the case we
satisfy ourselves that the expenditure will further the religious work of Jehovah's Witnesses and we then send the money to the
organisation caring for Jehovah's Witnesses in that country. Finally, we obtain reports to confirm the money was properly used.

Volunteers
The charity is run entirely by trained, unpaid volunteers and it is appropriate that we here express appreciation for their tireless
efforts, resulting in a significant financial benefit to the charity. The basis for the care of their material needs is explained in note 9
of the accounts.

Achievement and performance

International Bible Students Association
Report of the Trustees

For the Year Ended 31

August 2009

the result was a net increase of 1% in those actively involved in the evangelising work. A special effort is being made to provide
literature and teaching facilities for ones who learn better in another language.

Conventions for Bible education
These summer conventions were again well attended; the total of 159,618 was well up on last year. All sessions are open to the
public, and there is no charge for admission. Almost 236,000 copies of the new Bible study aid “ ‘Bearing Thorough Witness’ About
God’s Kingdom” were distributed without charge at the conventions. Also, 310,000 copies of a new brochure for use in the public
ministry, “The Bible—What is its Message?” were given out for immediate use in the community. Finally, over 105,000 copies of a
DVD, “The Wonders of Creation Reveal God’s Glory” were made available without charge. These Bible teaching aids were eagerly
received.

Achievement and performance

Overseas aid
We had adequate funds to be able to respond to all of the requests received from the Governing Body of Jehovah's Witnesses, in
connection with lands where the economy is poor. The total was £1,617,000.

Fundraising activities
Because of the consistent support we enjoy from congregations of Jehovah's Witnesses, we do not engage in fundraising activities as
such. We include a reminder about methods of donating, either in our monthly letter of thanks to congregations, or in our internal
newsletter prior to the annual conventions. We find this to be adequate. It is good to see that in spite of the recession, donations
remained level, and voluntary income increased by over £1 million due to generous legacies. We do make an "at-cost" charge to
Watch Tower for giving them office, printery, warehouse and domestic accommodation.

Investment performance
The trustees are satisfied with the results for the year, taking into account interest rates generally. Money is held in first class banks,
with the bulk in liquidity funds that are protected or "ring fenced" in the event of bank failure.

Internal controls
These controls 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
the figures are recorded accurately and accounts are in balance. The internal audit programme has been achieved. The internal auditor
and his assistant, both drawn from the volunteer workforce, have a set agenda to pursue through the year and reported again in
writing to the Trustees in October 2009. Approved recommendations were implemented.

Financial review

Net Movement in Funds
There was a reduction of £1.7 million in available funds during the year. Our reserves remained adequate, permitting us to respond to
requests for overseas funding for Jehovah’s Witnesses.

Reserves policy
The Association has free reserves of approximately £5.6 million. The Association has a reliable donation base, being primarily the
1,539 congregations of Jehovah's Witnesses in the UK. Hence, we can plan confidently with relatively small reserves, having in mind
that we charge Watch Tower for the cost of running the HQ complex and we respond to the needs for funds overseas only after
filling our domestic requirements. Our established policy is to ensure that we have on hand in liquid funds at least three months'
working expenditure. At the year end, liquid assets on hand equate to 4 months of expenditure (2008: 7 months).

Principal funding sources
The charity is funded by donations and legacies. Also payments from Watch Tower cover the cost of operating the headquarters
complex.

Ex-gratia payments
During the year, the Charity Commission approved two ex-gratia payments totalling £10,000. The details are explained in note 18 to
the accounts.

Future developments
We anticipate an even greater demand for Bible literature in the year ahead, for Jehovah’s Witnesses and their public ministry, and
we are planning our financial resources accordingly. We also stand ready to provide whatever further facilities will be needed by
Watch Tower.

Statement of trustees’ responsibilities

International Bible Students Association
Report of the Trustees

For the Year Ended 31

August 2009

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.

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:

Stephen A. Hardy
Trustee

Date: February 11, 2010

Independent Auditors’ Report to the Members of

International Bible Students Association

For the Year Ended 31

August 2009

We have audited the financial statements of International Bible Students Association 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 three.

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
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: February 11, 2010

International Bible Students Association
Statement of Financial Activities

(incorporating an income and expenditure account)

For the Year Ended 31

August 2009

The notes on pages 11 to 16 form part of these financial statements

2009

2008

Unrestricted

Total

Funds

As restated

Notes

£'000

Incoming resources

Incoming resources from generated funds

Voluntary income

8,796

8,347

Investment income

157

434

Incoming resources from charitable activities

Provision of working and residential accommodation

4,177

3,782

Other incoming resources

297

1,474

Total incoming resources

13,427

14,037

Resources expended

Charitable activities

Provision of literature for Bible education

8,183

7,033

Provision of conventions for Bible education

798

643

Donations and aid overseas

1,617

1,089

Provision of working and residential accommodation

4,540

4,284

Governance costs

Total resources expended

15,142

13,062

Net incoming resources before other recognised gains and losses

(1,715)

975

Other recognised gains/losses

Realised gains on investment assets

Unrealised (losses)/gains on investment assets

(18)

Net movement in funds

(1,724)

976

Reconciliation of funds

Total funds brought forward

50,443

49,467

Total funds carried forward

48,719

50,443

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, other than the closing of the
farm operation in 2008. All gains and losses recognised in the year are included above. The deficit for the year for Companies Act
purposes comprising the net incoming resources for the year together with the realised gains on investments was £1,707,499 (2008:
Surplus £976,382).

International Bible Students Association
Balance Sheet
As at 31

August 2009

The notes on pages 11 to 16 form part of these financial statements

2009

2008

Total

funds

Notes

£'000

Fixed assets

Tangible assets

53,985

52,671

Current assets

Stocks

112

115

Debtors: amounts falling due within one year

506

319

Investments

188

Cash at bank and in hand

5,598

7,801

6,240

8,423

Creditors

Amounts falling due within one year

(637)

(482)

Net current assets

5,603

7,941

Total assets less current liabilities

59,588

60,612

Creditors

Amounts falling due after more than one year

(10,869)

(10,169)

Net assets

48,719

50,443

Funds

Unrestricted funds

48,719

50,443

Total funds

48,719

50,443

The financial statements were approved by the Board of Trustees on February 11, 2010 and were signed on its behalf by:

Stephen A. Hardy
Trustee

John Andrews
Trustee

International Bible Students Association
Cash Flow Statement
For the Year Ended 31

August 2009

The notes on pages 11 to 16 form part of these financial statements

2009

2008

Notes

£'000

Net cash (outflow)/inflow from operating activities

(1,165)

(312)

Returns on investments and servicing of finance

157

434

Capital expenditure and financial investment

(2,278)

1,462

Financing

700

Management of liquid resources

383

Increase in cash in the period

(2,203)

1,584

Reconciliation of net cash flow to movement in net debt (note 21)

2009

2008

(as restated)

£'000

(Decrease)/Increase in cash in the period

(2,203)

1,584

(Decrease)/increase in liquid resources

(164)

188

Increase in debt

(700)

Change in net debt resulting from cash flows

(3,067)

1,772

Movement in net debt in the period

(3,067)

1,772

Net debt at 1 September

(2,180)

(3,952)

Net debt at 31 August

(5,247)

(2,180)

International Bible Students Association
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. The financial statements have been prepared in accordance with applicable accounting
standards, the Companies Act 2006 and the requirements of the Statement of Recommended Practice, Accounting and
Reporting by Charities (March 2005).

Resources expended
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to
the 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.

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.

Freehold Land

- not depreciated

Buildings

- 2% on cost

Plant and Machinery

- 10% on cost

Motor Vehicles

- 25% on reducing balance

Assets in the Course of Construction

- not depreciated

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 comprise Electrical, Maintenance and Home supplies, and are valued at the lower of cost and net realisable value,
after making due allowance for obsolete and slow moving items.

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.

The charity has no restricted funds.

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.

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

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2009

Beneficial Loans
The charity has benefited from an interest free loan from Watch Tower, which is a related party. The estimated interest that
the charity would have paid on the open market for such a loan has been included as income and deducted as an expense.

Voluntary income

2009

2008

As restated

£'000

Cash donations

7,145

7,147

Legacies

1,251

600

Interest waived on beneficial loan

400

600

8,796

8,347

Investment income

2009

2008

£'000

Current asset investment income

157

434

Incoming resources from charitable activities

2009

2008

£'000

Provision of working and residential accommodation

4,177

3,782

Other incoming resources

2009

2008

£'000

Surplus on disposal of tangible fixed assets

297

1,474

Charitable activities costs

Direct costs

Totals

£'000

Provision of literature for Bible education

8,183

Provision of conventions for Bible education

798

Donations and aid overseas

1,617

Provision of working and residential accommodation

4,540

15,138

The charity does not incur any support costs.

Governance costs

2009

2008

£'000

Other professional fees

Auditors’ remuneration
Other services provided by external auditors

4
4

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2009

Net incoming/(outgoing) resources

Net resources are state after charging/(crediting):

2009

2008

£'000

Auditors’ remuneration

Other services provided by the external auditors

Depreciation

1,260

882

Surplus on disposal of tangible fixed assets

(297)

(1,474)

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 Association has close
connections with Watch Tower, which prints Bible based literature and which is a registered charity with similar objects.
This charity also has the same registered office as that of the Association.

The trustees of IBSA receive no salary in their capacity as trustees. The trustees are also volunteer workers of the
Association and they receive a fixed reimbursement for personal expenses 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 2009 nor for the year ended 31 August 2008.

10.

Tangible Fixed Assets

Assets in Course of

Construction

Land &

Buildings

Plant and

Machinery

Motor

Vehicles

Totals

£000s

Cost

At 1

September 2008

60,855

1,724

442

63,021

Additions

174

2,551

2,840

Disposals

(613 )

(154 )

(50 )

(817)

At 31

August 2009

174

62,793

1,607

470

65,044

Depreciation

At 1

September 2008

9,449

713

188

10,350

Charge for year

1,075

131

1,260

Disposals

(403 )

(114 )

(34 )

(551)

At 31

August 2009

10,121

730

208

11,059

Net Book Value

At 31

August 2009

174

52,672

877

262

53,985

At 31

August 2008

51,406

1,011

254

52,671

The trustees are of the opinion that the market value of land and building was in the order £75.4 million. This figure is based
on the trustees knowledge of the value of comparative properties held locally.

11.

Stocks

2009

2008

£'000

Stocks - Electrical, Maintenance and Home supplies

112

115

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2009

12.

Debtors: amounts falling due within one year

2009

2008

£'000

Trade debtors

Other debtors

504

315

506

319

13.

Current asset investments

UK Listed

investments at

market value

£'000

Market value at 1

September 2008

188

Additions

226

Disposals

(372)

Net loss on revaluation

(18)

At 31

August 2009

14.

Creditors: amounts falling due within one year

2009

2008

£'000

Trade creditors

Social security and other taxes

Other creditors

294

107

Due to connected charity

272

279

637

482

15.

Creditors: amounts falling due after more than one year

2009

2008

£'000

Loan from connected charity

10,869

10,169

The loan is from Watch Tower, a connected charity identified in note 1. The loan was made to assist the charity with the
purchase of buildings.

The trustees wish to express their indebtedness to the trustees of Watch Tower for providing the loan interest free. The
trustees of Watch Tower are of the opinion that in view of the fact that the objectives of Watch Tower are similar to those of
IBSA, they can treat the waived interest element as a donation.

16.

Movement in funds

At 1.9.08

Net movement

in funds

At 31.8.09

£'000

Unrestricted funds

General fund

50,443

(1,724)

48,719

Total funds

50,443

(1,724)

48,719

International Bible Students Association
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

Movement in

funds

£'000

Unrestricted funds

General fund

13,427

15,142

(9)

(1,724)

Total funds

13,427

15,142

(9)

(1,724)

17.

Related party transactions

The Association has close connections with Watch Tower, which prints Bible based literature and which is a registered
charity with similar objects. This charity also has the same registered office as that of the Association.

During the year, the Association purchased literature from Watch Tower amounting to £8,183,461. As an integral part of the
charitable activities of the Association, it allowed Watch Tower to use the Association’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, the
Association charged Watch Tower £4,176,521 for these services.

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

During the year, the Association 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 the Association. No balance was outstanding at the year end in
respect of this transaction.

The Association 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, and this has been provided for in the accounts as both an
expense and an incoming resource.

18.

Ex gratia payments

In the estate of Ernest Edward Heffer deceased, the Trustees requested approval from the Charity Commission to make two
ex-gratia payments of £5,000.00 each, and this was approved in a sealed order from the Commission dated December 19,
2008, case No. 689890 and sealing No. 1375/0809.

19.

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

2009

2008

£'000

Net incoming resources before other recognised gains and losses

(1,715)

975

Depreciation charges

1,260

882

Surplus on disposal of tangible fixed assets

(297)

(1,474)

Interest received

(157)

(434)

Investments received

(227)

(188)

Decrease in stocks

(Increase)/Decrease in debtors

(187)

Increase/(Decrease) in creditors

155

(123)

Net cash outflow from operating activities

(1,165)

(312)

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2009

20.

Analysis of cash flows for headings netted in the Cash Flow Statement

2009

2008

£'000

Returns on investments and servicing of finance

Interest received

157

434

Net cash inflow/(outflow) for returns on investments and servicing of finance

157

434

Capital expenditure and financial investment

Purchase of tangible fixed assets

(2,840)

(757)

Sale of tangible fixed assets

562

2,218

Sale of investment property

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

(2,278)

1,462

Financing

Repayment of loan

(2,000)

Drawdown of loan

2,700

Net cash inflow for financing

700

Management of liquid resources

Cash inflows from disposal or redemption of investments

383

Net cash inflow for management of liquid resources

383

21.

Analysis of changes in net debt

At 1.9.08

Cash flow

At 31.8.09

(as restated)

£'000

Net cash:

Cash at bank and in hand

7,801

(2,203)

5,598

Liquid resources:

Current asset investments

188

(164)

Financing

Debt due after one year

(10,169)

(700)

(10,869)

Total

(2,180)

(3,067)

(5,247)

22.

Prior year adjustments

Net debt
The net debt position from the previous year has been adjusted to include borrowings less cash and liquid resources, as
defined by FRS 1, “Cash Flow Statements”.

Beneficial loans
In the current year the charity adopted a policy of recognising the gift in kind implicit in the interest free loan from Watch
Tower. The comparative figures have been adjusted to show a donation received and interest payable of £600,000. This has
not affected the surplus for the prior year.

registered company number: 136726

registered charity number: 216647

Annual report and financial statements

Year ended 31 August 2010

International Bible Students Association

International Bible Students Association
Contents of the Financial Statements
For the Year Ended 31

August 2010

Page

Report of the Trustees

3 to 6

Report of the Independent Auditors

Statement of Financial Activities

Balance Sheet

Cash Flow Statement

Notes to the Financial Statements

11 to 18

International Bible Students Association
Report of the Trustees

For the Year Ended 31

August 2010

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial
statements of the charity for the year ended 31 August 2010. 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
136726

Registered Charity number
216647

Registered office
IBSA House
The Ridgeway
London
NW7 1RN

Trustees

S A Hardy

J S Andrews

J D Dutton

P P Bell

S Papps

Structure, governance and management

Recruitment and appointment of new trustees
The Trustees of the Association who held office during the year, and at the date of this report, are set out above. These trustees have
key managerial roles at the charity's headquarters. They meet weekly and are in regular contact from day to day. Trustees are elected
annually by a simple majority of the members present at the AGM.

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. Training is arranged as part of the meetings of the Trustees when the charity's policies are discussed. This is
supplemented by a periodic training session provided by the auditors, whenever there is significant new legislation affecting the
charity .

International Bible Students Association
Report of the Trustees

For the Year Ended 31

August 2010

Structure, governance and management

Induction and training of new trustees
Trustees are given Charity Commission publications and are sent on a two month course which includes training in legal and
financial matters.

Organisational structure
The charity is constituted as a company limited by guarantee.

The trustees organise the running of the charity through a number of departments. Each department is headed up by a trained and
experienced department overseer who will make 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
The Association works closely with Watch Tower Bible and Tract Society of Britain (Watch Tower). It provides volunteers for
Watch Tower to use in its activities. It permits Watch Tower to use its facilities for Watch Tower's charitable work and provides
accommodation for the volunteers. A service and maintenance charge is made which includes the cost of the volunteers. The
Association purchases religious material from Watch Tower and donates this to congregations of Jehovah's Witnesses.

Risk management
The major risks to which the charity is exposed have been formally 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. The
risk register was updated most recently in August 2007. The principal risks addressed were Disaster recovery and planning; Failure
to comply with legal requirements on health and safety, fire, environment, waste; Construction projects; Contamination of food.

Public Benefit

Bible literature we have supplied without charge to congregations of Jehovah’s Witnesses in the UK, has been distributed,
gratis, by those congregations, to interested members of the public in their local communities, in the following quantities:
17,180,000 copies of Watchtower and Awake! and 1,180,000 Bibles and Bible study aids.

Our conventions for Bible education were widely advertised by personal invitations delivered to the public nationwide.

Objectives and activities

activities.

3. The arranging of conventions for Bible education.

Significant activities
There continues to be an increasing demand for the religious literature we purchase from Watch Tower, hence the cost of our
providing this has risen. At the same time, the scope of Watch Tower’s printing for international distribution continues to widen.
More translation of the Bible and related publications is being done in London. Hence, we are embarking on projects to provide
more living accommodation for the volunteers engaged in these activities.

Grant making
Our grant making policy is as follows. From time to time we are asked by the Governing Body of Jehovah's Witnesses to consider
helping Jehovah's Witnesses in countries where a need exists. We first consider whether the budget permits. If this is the case we
satisfy ourselves that the expenditure will further the religious work of Jehovah's Witnesses and we then send the money to the
organisation caring for Jehovah's Witnesses in that country. Finally, we obtain reports to confirm the money was properly used.

Volunteers
The charity is run entirely by trained, unpaid volunteers and it is appropriate that we here express appreciation for their tireless
efforts, resulting in a significant financial benefit to the charity. The basis for the care of their material needs is explained in note 10
of the accounts.

International Bible Students Association
Report of the Trustees

For the Year Ended 31

August 2010

Achievement and performance

Conventions for Bible education
These summer conventions were again well attended; the total of 159,031 was gratifying. All sessions are open to the public, and
there is no charge for admission. 237,000 copies of the new Bible study aid “God’s Word For Us Through Jeremiah” were
distributed without charge at the conventions. Also, 315,000 copies of a new brochure for use in the public ministry, “Was Life
Created?” and 315,000 copies of the new brochure “The Origin of Life – Five Questions Worth Asking” were given out for
immediate use in the community. Finally, over 103,000 copies of a DVD, “Faith In Action (Part 1) Out of Darkness” were made
available without charge. These Bible teaching aids were eagerly received.

Achievement and performance

Overseas aid
We had adequate funds to be able to respond to all of the requests received from the Governing Body of Jehovah's Witnesses, in
connection with lands where the economy is poor. The total was £1,010,000.

Fundraising activities
Because of the consistent support we enjoy from congregations of Jehovah's Witnesses, we do not engage in fundraising activities as
such. We include a reminder about methods of donating, either in our monthly letter of thanks to congregations, or in our internal
newsletter prior to the annual conventions. We find this to be adequate. It is good to see that in spite of the recession, voluntary
income increased again. To fund the property developments described elsewhere in this report, we sought and received grants
provided by Jehovah’s Witnesses in other countries. We do make an "at-cost" charge to Watch Tower for giving them office,
printery, warehouse and domestic accommodation.

Investment performance
The trustees are satisfied with the results for the year, taking into account interest rates generally. Money is held in first class banks,
with the bulk in liquidity funds that are protected or "ring fenced" in the event of bank failure.

Internal controls
These controls 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
the figures are recorded accurately and accounts are in balance. The internal audit programme has been achieved. The internal auditor
and his assistant, both drawn from the volunteer workforce, have a set agenda to pursue through the year and reported again in
writing to the Trustees in November 2010. All was found to be in order.

Financial review

Net Movement in Funds
There was a reduction of £2.86 million in cash during the year. Our reserves remained adequate, permitting us to respond to requests
for overseas funding for Jehovah’s Witnesses at a reduced level.

Reserves policy
The Association has cash of approximately £2.7 million. The Association has a reliable donation base, being primarily the 1,543
congregations of Jehovah's Witnesses in the UK. Hence, we can plan confidently with relatively small reserves, having in mind that
we charge Watch Tower for the cost of running the HQ complex and we respond to the needs for funds overseas only after filling our
domestic requirements. Our established policy is to ensure that we have on hand in liquid funds at least two months' working
expenditure. At the year end, liquid assets on hand equate to 2.3 months of expenditure (2009: 4.4 months).

Principal funding sources
The charity is funded by donations and legacies. Also, grants are received from Jehovah’s Witnesses in other countries. £12.2
million was received by way of grants, through a charity in Germany, Jehovas Zeugen in Deutschland. Also payments from Watch
Tower cover the cost of operating the headquarters complex.

Future developments
We anticipate an even greater demand for Bible literature in the year ahead, for Jehovah’s Witnesses and their public ministry, and
we are planning our financial resources accordingly. Plans are in hand to provide further residential accommodation for Watch
Tower volunteers.

International Bible Students Association
Report of the Trustees

For the Year Ended 31

August 2010

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.

Statement as to disclosure of information to auditors

On behalf of the board:

Stephen A. Hardy

Trustee

Date: February 17, 2011

Independent Auditors’ Report to the Members of

International Bible Students Association

For the Year Ended 31

August 2010

We have audited the financial statements of International Bible Students Association 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

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: February 18, 2011

International Bible Students Association
Statement of Financial Activities

(incorporating an income and expenditure account and statement of total recognised gains and losses)

For the Year Ended 31

August 2010

The notes on pages 11 to 18 form part of these financial statements

2010

2009

Unrestricted

Restricted

Total

funds

Notes

£'000

Incoming resources

Incoming resources from generated funds

Voluntary income

15,419

5,990

21,409

8,796

Investment income

157

Incoming resources from charitable activities

4,330

4,177

Other incoming resources

297

Total incoming resources

19,778

5,990

25,768

13,427

Resources expended

Charitable activities

Provision of literature for Bible education

11,540

7,783

Provision of conventions for Bible education

710

798

Donations and aid overseas

1,010

1,617

Provision of working and residential accommodation

4,298

4,540

Governance costs

Other resources expended

400

Total resources expended

17,969

15,142

Net incoming/(outgoing) resources before transfers

1,809

5,990

7,799

(1,715)

Transfers

Gross transfers between funds

5,975

(5,975)

Net incoming resources before other recognised
gains and losses

7,784

7,799

(1,715)

Other recognised gains/losses

Realised gains/(losses) on investment assets

(1)

Unrealised gains/(losses) on investment assets

(18)

Net movement in funds

7,786

7,801

(1,724)

Reconciliation of funds

Total funds brought forward

48,719

50,443

Total funds carried forward

56,505

56,520

48,719

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 £7,798,279 (2009: Deficit £1,707,499).

International Bible Students Association
Balance Sheet
As at 31

August 2010

The notes on pages 11 to 18 form part of these financial statements

2010

2009

Unrestricted

Restricted

Total

funds

Creditors

Amounts falling due within one year

(1,672)

(637)

Net current assets

3,434

3,449

5,603

Total assets less current liabilities

62,630

62,645

59,588

Creditors

Amounts falling due after more than one year

(6,125)

(10,869)

Net assets

56,505

56,520

48,719

Funds

Unrestricted funds

56,505

48,719

Restricted funds

Total funds

56,520

48,719

The financial statements were approved by the Board of Trustees on February 17, 2011 and were signed on its behalf by:

Stephen A. Hardy
Trustee

John Andrews
Trustee

Notes

£'000

Fixed assets

Tangible assets

59,196

53,985

Current assets

Stocks

112

Debtors: amounts falling due within one year

2,232

506

Investments

Cash at bank

2,714

2,729

5,598

5,106

5,121

6,240

International Bible Students Association
Cash Flow Statement
For the Year Ended 31

August 2010

The notes on pages 11 to 18 form part of these financial statements

2010

2009

Notes

£'000

Net cash (outflow)/inflow from operating activities

8,010

(1,165)

Returns on investments and servicing of finance

157

Capital expenditure and financial investment

(6,166)

(2,278)

Financing

(4,744)

700

Management of liquid resources

383

Decrease in cash in the period

(2,869)

(2,203)

Reconciliation of net cash flow to movement in net debt (note 22)

2010

2009

£'000

Decrease in cash in the period

(2,869)

(2,203)

Increase/(Decrease) in liquid resources

(164)

Increase/(Decrease)in debt

4,744

(700)

Change in net debt resulting from cash flows

1,899

(3,067)

Movement in net debt in the period

1,899

(3,067)

Net debt at 1 September

(5,247)

(2,180)

Net debt at 31 August

(3,348)

(5,247)

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2010

Accounting policies

Donations receivable
All incoming resources are included on the Statement of Financial Activities 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.

Grants receivable
Unrestricted grants receivable are recognised when they are received. They represent amounts received to contribute towards
the running expenses of IBSA and to assist in repaying the loan owed to Watch Tower.

Restricted grants receivable represent amounts received to finance the purchase of fixed assets. They have been recognised
when received. The purchase of fixed assets discharges the restriction on these funds, therefore a transfer to unrestricted
funds has been made as and when fixed assets have been purchased.

Legacies
The value of legacies is brought into the accounts at the earlier of the charity being notified of an impending distribution or
the legacy being received.

Provision of working and residential accommodation
Income from the provision of working and residential accommodation is received from a connected charity, Watch Tower
Bible and Tract Society of Britain (“Watch Tower”), on a cost basis. Watch Tower occupies the residential accommodation,
the printery and the offices that are maintained by the charity.

Governance costs
Governance costs comprise external audit fees and other fees from consultants.

Freehold Land

- not depreciated

Buildings

- 2% on cost

Plant and Machinery

- 10% on cost

Motor Vehicles

- 25% on reducing balance

Assets in the Course of Construction

- not depreciated

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.

Investments

Investments are included in the balance sheet at market value.

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

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

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2010

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

The charity has received capital grants this year that comprise a restricted fund. Please see the “grants receivable” policy
above for information about how this fund has arisen and been discharged.

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.

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

Beneficial Loans
The charity has benefited from an interest free loan from Watch Tower, which is a related party. The estimated interest that
the charity would have paid on the open market for such a loan has been included as income and deducted as an expense.

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

Cash donations

7,487

7,145

Legacies

1,070

1,251

Interest waived on beneficial loan

400

Assets donated

222

Grants receivable

12,230

21,409

8,796

All grants receivable were from “Jehovas Zeugen in Deutschland”, a charity in Germany with similar objectives.

Investment income

2010

2009

£'000

Current asset investment income

157

Interest receivable

157

Incoming resources from charitable activities

2010

2009

£'000

Provision of working and residential accommodation

4,330

4,177

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2010

Other incoming resources

2010

2009

£'000

Surplus on disposal of fixed assets

297

Resource recovery

Currency translation gains

297

Charitable activities costs

Direct

Grant

Totals

£'000

Provision of literature for Bible education

11,540

Provision of conventions for Bible education

710

Donations and aid overseas

201

809

1,010

Provision of working and residential accommodation

4,298

5,209

12,349

17,558

As all of the charity’s general running costs are reimbursed completely by Watch Tower, all such costs are, in effect, direct
costs. All human resources, IT, finance and management costs are included in the “provision of working and residential
accommodation” above or in “governance costs”. These have been fully reimbursed by Watch Tower.

Grants

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

By continent:

Cash

Goods

Literature

Totals

£'000

Europe

122

11,528

11,655

Asia

585

606

Africa

Americas

779

11,563

12,349

By activity:

Cash

Goods

Literature

Totals

£'000

Distribution of Bibles and Bible-based literature

11,563

Supporting regional headquarters’ in their
administration of Christian missionary work

779

786

779

11,563

12,349

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

Communauté Chrétienne des Bethelites (France)
Jehovas Zeugen (Germany)
Associação das Testemunhas de Jehová (Portugal)
Testigos Christianos de Jehová (Spain)
Towarzystwo Biblijne I Traktatowe ul. (Poland)

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2010

Governance costs

2010

2009

£'000

Auditors’ remuneration
Other services provided by external auditors

Net incoming/(outgoing) resources

Net resources are stated after charging/(crediting):

2010

2009

£'000

Auditors’ remuneration

Other services provided by the external auditors

Depreciation

1,101

1,260

Fixed assets donated overseas

(Loss)/Gain on disposal of tangible fixed assets

(297)

10.

Staff costs

The charity is fully staffed by volunteers, and therefore does not incur staff costs in the form of wages and salaries.

11.

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 Association has close
connections with Watch Tower, which prints Bible based literature and which is a registered charity with similar objects.
This charity also has the same registered office as that of the Association.

The trustees of IBSA receive no salary in their capacity as trustees. The trustees are also volunteer workers of the
Association and they receive a fixed reimbursement for personal expenses of £95 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 2010 nor for the year ended 31 August 2009.

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2010

12.

Tangible Fixed Assets

Assets in Course
of Construction

Land &

Buildings

Plant &

Machinery

Motor

Vehicles

Total

£000

Cost

At 1

September 2009

174

62,793

1,607

470

65,044

Additions

104

6,198

6,392

Disposals

(90)

(32)

(22)

(144)

Transfers

(101)

At 31

August 2010

177

68,989

1,622

504

71,292

Depreciation

At 1

September 2009

10,121

730

208

11,059

Charge for year

925

121

1,101

Disposals

(18)

(29)

(17)

(64)

At 31

August 2010

11,028

822

246

12,096

Net Book Value

At 31

August 2010

177

57,961

800

258

59,196

At 31

August 2009

174

52,672

877

262

53,985

The trustees are of the opinion that the market value of land and building was in the order £79 million. This figure is based
on the trustees’ knowledge of the value of comparative properties held locally.

13.

Stocks

2010

2009

£'000

Stocks - Electrical, Maintenance and Home supplies

112

14.

Debtors: amounts falling due within one year

2010

2009

£'000

Trade debtors

Other debtors

2,223

504

2,232

506

15.

Current asset investments

UK Listed

investments at

market value

£'000

Market value at 1

September 2009

Additions

Disposals

(11)

Net gain on revaluation

At 31

August 2010

Historical cost at 31

August 2010

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2010

16.

Creditors: amounts falling due within one year

2010

2009

£'000

Trade creditors

1,234

Other creditors

438

600

1,672

637

17.

Creditors: amounts falling due after more than one year

2010

2009

£'000

Loan

6,125

10,869

The loan is from Watch Tower, a connected charity identified in note 1. The loan was made to assist the charity with the
purchase of buildings. There is no schedule of repayment in place, but the entire debt is repayable on one year’s notice.

The trustees wish to express their indebtedness to the trustees of Watch Tower for providing the loan interest free.

18.

Movement in funds

At 1.9.09

Net movement

in funds

At 31.8.10

£'000

Unrestricted funds

General fund

48,719

7,786

56,505

Restricted funds

Capital grants fund

Total funds

48,719

7,801

56,520

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

19,778

(17,969)

5,975

7,786

Restricted funds

Capital grants fund

5,990

(5,975)

Total funds

25,768

(17,969)

7,801

Capital grants fund

This has arisen due to capital grants being received this year to enable the purchase of certain new fixed assets. As the
purchase of fixed assets discharges the restriction on these funds, a transfer to unrestricted funds is made as new fixed assets
are bought.

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2010

19.

Related party transactions

The Association has close connections with Watch Tower, which prints Bible based literature and which is a registered
charity with similar objects. This charity also has the same registered office as that of the Association.

During the year, the Association 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: £271,451), being the invoice for August 2010. An administrative
error has led to IBSA being overcharged for literature over the last two years. An estimate of the overcharge (£1.4 million)
has been included as a debtor on the balance sheet (2009: £nil).

As an integral part of the charitable activities of the Association, it allowed Watch Tower to use the Association’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, the Association 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 these 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.

The Association 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. It is repayable
with one year’s notice. The interest that would be due under normal, commercial rates has been estimated at £400,000
(2009:£400,000), and this has been provided for in the accounts as both an expense and an incoming resource.

20.

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

2010

2009

£'000

Net incoming resources before other recognised gains and losses

7,799

(1,715)

Fixed assets donated

(221)

Depreciation charges

1,101

1,260

Fixed assets donated overseas

Loss/(Gain) on disposal of tangible fixed assets

(297)

Interest and dividends received

(20)

(157)

Investments received

(34)

(227)

Decrease in stocks

Increase in debtors

(1,726)

(187)

Increase in creditors

1,035

155

Net cash outflow from operating activities

8,010

(1,165)

International Bible Students Association
Notes to the Financial Statements
For the Year Ended 31

August 2010

21.

Analysis of cash flows for headings netted in the Cash Flow Statement

2010

2009

£'000

Returns on investments and servicing of finance

Interest received

157

Net cash inflow/(outflow) for returns on investments and servicing of finance

157

Capital expenditure and financial investment

Purchase of tangible fixed assets

(6,170)

(2,840)

Sale of tangible fixed assets

562

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

(6,166)

(2,278)

Financing

Repayment of loan

(4,744)

(2,000)

Drawdown of loan

2,700

Net cash inflow for financing

(4,744)

700

Management of liquid resources

Cash inflows from disposal or redemption of investments

383

Net cash inflow for management of liquid resources

383

22.

Analysis of changes in net debt

At 1.9.09

Cash flow

At 31.8.10

£'000

Net cash:

Cash at bank and in hand

5,598

(2,869)

2,729

Liquid resources:

Current asset investments

Financing

Debt due after one year

(10,869)

4,744

(6,125)

Total

(5,247)

1,899

(3,348)

23.

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.

REGISTERED COMPANY NUMBER: 136726 (England and Wales)

REGISTERED CHARITY NUMBER: 216647

Report of the Trustees and

Financial Statements For The Year Ended 31st August 2011

for

International Bible Students Association

International Bible Students Association

Contents of the Financial Statements
for the Year Ended 31st August 2011

Page

Report of the Trustees

1 to 5

Report of the Independent Auditors

Statement of Financial Activities

7 to 8

Balance Sheet

Cash Flow Statement

Notes to the Financial Statements

11 to 20

International Bible Students Association

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

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with
the financial statements of the charity for the year ended 31st August 2011. 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
136726 (England and Wales)

Registered Charity number
216647

Registered office
IBSA House
The Ridgeway
London
NW7 1RN

Trustees

P S Gillies

- appointed 2.11.11

S A Hardy

J S Andrews

J D Dutton

P P Bell

- resigned 2.11.11

S Papps

Auditors
Calcutt Matthews Ltd
Chartered Accountants and Statutory Auditor
19 North Street
Ashford
Kent
TN24 8LF

STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity was incorporated on 30th June 1914 and is governed by the Memorandum and Articles of Association of
that date as amended by special resolutions on 20th April 1951, 10th January 1958, 28th November 2005 and 4th
January 2006.

Recruitment and appointment of new trustees
The Trustees of the Association who held office during the year, and at the date of this report, are set out above. These
trustees have key managerial roles at the charity's headquarters. They meet weekly and are in regular contact from day
to day. Trustees are elected annually by a simple majority of the members present at the AGM.

The recruitment and induction of new Trustees is arranged as follows. When necessary, 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. Training is arranged as part of the meetings of the Trustees when
the charity's policies are discussed. This is supplemented by a periodic training session provided by the auditors,
whenever there is significant new legislation affecting the charity .

Induction and training of new trustees
Trustees are given Charity Commission publications and are sent on a two month course which includes training in
legal and financial matters

International Bible Students Association

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

STRUCTURE, GOVERNANCE AND MANAGEMENT
Organisational structure
The charity is constituted as a company limited by guarantee.

The trustees organise the running of the charity through a number of departments. Each department is headed up by a
trained and experienced department overseer who will make regular reports to the Trustees.

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

Related parties
The Association works closely with Watch Tower Bible and Tract Society of Britain (Watch Tower). It provides
serviced facilities for Watch Tower to use in its charitable activities. The Association purchases religious material from
Watch Tower and donates this to congregations of Jehovah's Witnesses. The coordinating role of the Governing Body
of Jehovah's Witnesses means we have ready access to surplus funds held by Jehovah's Witnesses in other countries.

Risk management
The major risks to which the charity is exposed have been formally 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. The risk register was reviewed and updated most recently on October 26, 2011. The principal
risks addressed were Disaster recovery and planning; Failure to comply with legal requirements on health and safety,
fire, environment, waste; Construction projects; Contamination of food.

Public Benefit
The Trustees confirm that they have taken into consideration Charity Commission guidance on public benefit in
exercising their powers and duties, and this is amply demonstrated in the report that follows, in particular:

1. Bible literature we have supplied without charge to congregations of Jehovah's Witnesses in the UK, has been
distributed, gratis, by those congregations, to interested members of the public in their local communities, in the
following quantities: 17,336,000 copies of Watchtower and Awake! and 1,189,000 Bibles and Bible study aids.
2. Our conventions for Bible education were widely advertised by personal invitations delivered to the public
nationwide.

OBJECTIVES AND ACTIVITIES
Objectives and aims
The object of the Association is to promote the Christian religion by supporting congregations of Jehovah's Witnesses
and others in connection with their spiritual and material welfare in Britain and abroad within the charitable purposes of
the Association. This is achieved by:
1. The purchase and distribution of religious literature, free of charge.
2. The provision of serviced facilities for the printing of religious literature and the housing of workers engaged in this
and in related activities.
3. The arranging of conventions for Bible education.

Significant activities
There continues to be an increasing demand for the religious literature we purchase from Watch Tower, hence the cost
of our providing this has risen. At the same time, the scope of Watch Tower's printing for international distribution
continues to widen. More translation of the Bible and related publications is being done in London. Hence, we are
embarking on projects to provide more living accommodation for the workers engaged in these activities. Specifically,
another block of flats was purchased to enhance our residential accommodation. Land was bought to build more flats,
and these are now in course of construction.

Grant making
Our grant making policy is as follows. From time to time we are asked by the Governing Body of Jehovah's Witnesses
to consider helping Jehovah's Witnesses in countries where a need exists. We first consider whether the budget permits.
If this is the case we satisfy ourselves that the expenditure will further the religious work of Jehovah's Witnesses and we
then send the money to the organisation caring for Jehovah's Witnesses in that country. Finally, we obtain reports to
confirm the money was properly used.

International Bible Students Association

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

OBJECTIVES AND ACTIVITIES
Workers
The charity is run entirely by trained workers who receive just a small allowance and it is appropriate that we here
express appreciation for their tireless efforts, resulting in a significant financial benefit to the charity. The basis for the
care of their material needs is explained in note 9 of the accounts.

ACHIEVEMENT AND PERFORMANCE
Charitable activities
Provision of literature for Bible education
The literature we donate to congregations of Jehovah's Witnesses plays a pivotal role in their Bible teaching activity.
This activity reached out to the communities in the area covered by the congregations resulting in families and
individuals receiving free instruction in their own homes. An average of over 56,000 home Bible study courses were
provided each month. It was pleasing to learn that during the year under review, 2,739 individuals made the decision
to become baptised members of the congregation, and the result was a net increase of 1% in those actively involved in
the evangelising work. A special effort is being made to provide literature and teaching facilities for ones who learn
better in another language.

Conventions for Bible education
These summer conventions were again well attended; the total of 161,243 was gratifying. All sessions are open to the
public, and there is no charge for admission. 236,000 copies of "Questions Young People Ask - Answers That Work,
volume 1 (revised) were distributed without charge at the conventions. Also, 320,000 copies of a new brochure for use
in the public ministry, "Listen to God and Live Forever" and 316,000 of the simplified version "Listen to God" were
given out for immediate use in the community. Finally, over 103,000 copies of a DVD, "Faith In Action (Part 2) Let
the Light Shine" were made available without charge. These Bible teaching aids were eagerly received.

Overseas aid
We had adequate funds to be able to respond to all of the requests received from the Governing Body of Jehovah's
Witnesses, in connection with lands where the economy is poor. The total was £956,000.

Fundraising activities
Because of the consistent support we enjoy from congregations of Jehovah's Witnesses, we do not engage in
fundraising activities as such. We include a reminder about methods of donating, either in our monthly letter of thanks
to congregations, or in our internal newsletter prior to the annual conventions. We find this to be adequate. It is good
to see that in spite of the recession, voluntary income increased again. To fund the property developments described
elsewhere in this report, we sought and received grants provided by Jehovah's Witnesses in other countries. We do
make a charge to Watch Tower for providing serviced facilities for its use.

Investment performance
The trustees are satisfied with the results for the year, taking into account interest rates generally. Money is held in
first class banks, with the bulk in liquidity funds that are protected or "ring fenced" in the event of bank failure.

Internal controls
These controls 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 the figures are recorded accurately and accounts are in balance. The internal audit
programme has been achieved. The internal auditor and his assistant, both drawn from the volunteer workforce, have a
set agenda to pursue through the year and reported again in writing to the Trustees in October 2011. All was found to be
in order.

International Bible Students Association

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

FINANCIAL REVIEW
Net Movement in Funds
There was a reduction of £971,000 in cash during the year. Our reserves remained adequate, permitting us to respond to
requests for overseas funding for Jehovah's Witnesses at a reduced level.

Reserves policy
The Association has cash of approximately £3.3 million. The Association has a reliable donation base, being primarily
the resources of Jehovah's Witnesses, pooled in Germany, and the 1,537 congregations of Jehovah's Witnesses in the
UK. Hence, we can plan confidently with relatively small reserves, having in mind that we charge Watch Tower for the
provision of serviced facilities and we respond to the needs for funds overseas only after filling our domestic
requirements. Our established policy is to ensure that we have on hand in liquid funds at least two months' working
expenditure. At the year end, liquid assets on hand equate to 3 months of expenditure (2010: 2.3 months).

Principal funding sources
The charity is funded by donations and legacies. Also, grants are received from Jehovah's Witnesses in other countries.
£15.2 million was received by way of grants, through a charity in Germany, Jehovas Zeugen in Deutschland. Also
sizeable payments are received from Watch Tower for providing it with serviced facilities.

FUTURE DEVELOPMENTS
We anticipate an even greater demand for Bible literature in the year ahead, for Jehovah's Witnesses and their public
ministry, and we are planning our financial resources accordingly. Plans are in hand to provide further residential
accommodation for our workers.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The trustees (who are also the directors of International Bible Students Association 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.

International Bible Students Association

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

ON BEHALF OF THE BOARD:

Stephen A. Hardy
Trustee

Date: February 16, 2012

Report of the Independent Auditors to the Members of
International Bible Students Association

We have audited the financial statements of International Bible Students Association for the year ended
31st August 2011 on pages seven to twenty. 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: February 16, 2012

The notes form part of these financial statements

International Bible Students Association

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

23,366,359

5,437,000

28,803,359

21,408,751

Investment income

20,844

19,912

Incoming resources from charitable activities 4

Provision of working and residential
accommodation

4,425,669

4,330,053

Other incoming resources

7,970

8,848

Total incoming resources

27,820,842

5,437,000

33,257,842

25,767,564

RESOURCES EXPENDED

Charitable activities

Provision of literature for Bible education

11,742,371

11,540,494

Provision of conventions for Bible education

844,529

709,993

Donations and aid overseas

956,308

1,009,773

Provision of working and residential
accommodation

4,428,675

4,297,053

Governance costs

7,365

11,296

Other resources expended

112,000

400,000

Total resources expended

18,091,248

17,968,609

NET INCOMING RESOURCES before
transfers

9,729,594

5,437,000

15,166,594

7,798,955

Gross transfers between funds

5,451,602

(5,451,602)

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

15,181,196

(14,602)

15,166,594

7,798,955

Other recognised gains/losses

Gains/losses on fixed asset investments

(288)

(930)

Unrealised gains/(losses) on investment assets

3,464

2,627

Net movement in funds

15,184,372

(14,602)

15,169,770

7,800,652

RECONCILIATION OF FUNDS

Total funds brought forward

56,505,303

14,602

56,519,905

48,719,253

TOTAL FUNDS CARRIED FORWARD

71,689,675

56,519,905

The notes form part of these financial statements

International Bible Students Association

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

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

The notes form part of these financial statements

International Bible Students Association

Balance Sheet
At 31st August 2011

2011

2010

Unrestricted

Restricted

Total

funds

Notes

FIXED ASSETS

Tangible assets

69,213,857

59,196,426

CURRENT ASSETS

Stocks

136,521

111,603

Debtors: amounts falling due within one year

509,289

2,232,053

Investments

54,078

48,515

Cash at bank and in hand

3,213,935

2,728,691

3,913,823

5,120,862

CREDITORS

Amounts falling due within one year

(1,438,005)

(1,672,383)

NET CURRENT ASSETS

2,475,818

3,448,479

TOTAL ASSETS LESS CURRENT
LIABILITIES

71,689,675

62,644,905

CREDITORS

Amounts falling due after more than one year

(6,125,000)

NET ASSETS

71,689,675

56,519,905

FUNDS

Unrestricted funds

71,689,675

56,505,303

Restricted funds

14,602

TOTAL FUNDS

71,689,675

56,519,905

The financial statements were approved by the Board of Trustees on February 16, 2012 and were signed on its behalf
by:

Stephen A. Hardy
Trustee

John Andrews
Trustee

The notes form part of these financial statements

International Bible Students Association

Cash Flow Statement
for the Year Ended 31st August 2011

2011

2010

Notes

Net cash inflow from operating activities

12,862,015

8,010,086

Returns on investments and servicing of finance

21,281

18,746

Capital expenditure and financial investment

(6,275,536)

(6,165,351)

6,607,760

1,863,481

Management of liquid resources

2,484

11,866

Financing

(6,125,000)

(4,744,474)

Increase/(decrease) in cash in the period

485,244

(2,869,127)

Reconciliation of net cash flow to movement in
net debt

Increase/(decrease) in cash in the period

485,244

(2,869,127)

Cash outflow from increase in liquid resources

2,484

22,048

Cash outflow from decrease in debt and lease
financing

6,125,000

4,744,474

Change in net debt resulting from cash flows

6,612,728

1,897,395

Movement in net debt in the period

6,612,728

1,897,395

Net debt at 1st September

(3,347,794)

(5,247,816)

Net debt at 31st August

3,264,934

(3,350,421)

International Bible Students Association

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, 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 on the Statement of Financial Activities 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.

Grants receivable
Unrestricted grants receivable are recognised when they are received. They represent amounts received to
contribute towards the running expenses of IBSA and to assist in repaying the loan owed to Watch Tower.

Restricted grants receivable represent amounts received to finance the purchase of fixed assets. They have been
recognised when received. The purchase of fixed assets discharges the restriction on these funds, therefore a
transfer to unrestricted funds has been made as and when fixed assets have been purchased.

Legacies
The value of legacies is brought into the accounts at the earlier of the charity being notified of an impending
distribution or the legacy being received.

Provision of working and residential accommodation
Income from the provision of working and residential accommodation is received from a connected charity,
Watch Tower Bible and Tract Society of Britain ("Watch Tower"), on a cost basis. Watch Tower occupies the
residential accommodation, the printery and the offices that are maintained by the charity.

Resources expended
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost
related to the 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. 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.

Governance costs
Governance costs comprise external audit fees and other fees from consultants.

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:

Freehold Land

Not depreciated

Buildings

2% on cost

Plant and machinery

10% on cost

Motor vehicles

25 % on reducing balance

Assets in the course of construction

Not depreciated

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 comprise Electrical, Maintenance and Home supplies, and are valued at the lower of cost and net
realisable value, after making due allowance for obsolete and slow moving items.

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

International Bible Students Association

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

ACCOUNTING POLICIES - continued

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

The charity has received capital grants this year that comprise a restricted fund. Please see the "grants
receivable" policy above for information about how this fund has arisen and been discharged.

Foreign currencies
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.

Operating leases
Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis
over the period of the lease.

Investments
Investments are included in the balance sheet at market value.

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.)

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

Beneficial loans
The charity has benefited from an interest free loan from Watch Tower, which is a related party. The estimated
interest that the charity would have paid on the open market for such a loan has been included as income and
deducted as an expense.

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

Legacies

945,259

1,069,488

Grants

15,230,779

12,230,000

Assets donated

4,997,786

221,657

Cash donations

7,517,535

7,487,606

Interest waived on beneficial loan

112,000

400,000

28,803,359

21,408,751

Grants received, included in the above, are as follows:

2011

2010

Grants from "Jehovas Zeugen in Deutschland"

15,230,779

12,230,000

International Bible Students Association

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

INVESTMENT INCOME

2011

2010

Deposit account interest

19,556

19,080

Current asset investment income

1,288

832

20,844

19,912

INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

2011

2010

Activity

Provision of serviced
facilities

Provision of working and residential
accommodation

4,425,669

4,330,053

CHARITABLE ACTIVITIES COSTS

Direct costs

Grant funding

of activities

Totals

(See note 6)

Provision of conventions for Bible education

844,529

Donations and aid overseas

305,006

651,302

956,308

Provision of working and residential accommodation

4,428,675

Provision of literature for Bible education

11,742,371

5,578,210

12,393,673

17,971,883

As all of the charity's general running costs are reimbursed completely by Watch Tower, all such costs are, in
effect, direct costs. All human resources, IT, finance and management costs are included in the "provision of
working and residential accommodation" above or in "governance costs". These have been fully reimbursed by
Watch Tower.

GRANTS PAYABLE

2011

2010

Provision of literature for Bible education

11,742,371

11,540,494

Donations and aid overseas

651,302

808,769

12,393,673

12,349,263

International Bible Students Association

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

GRANTS PAYABLE - continued

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

By continent:

Cash

Goods

Literature

Totals

Europe

140,441

202,376

11,727,743

12,070,560

Asia

260,934

30,951

579

292,464

Africa

191

2,859

3,050

Americas

743

11,190

11,933

Other

15,666

401,375

249,927

11,742,371

12,393,673

By activity:

Cash

Goods

Literature

Totals

Distribution of Bibles and Bible-based
literature

11,742,371

Supporting regional headquarters in their
administration of Christian missionary
work

401,375

249,927

651,302

401,375

249,927

11,742,371

12,393,673

Cash

Goods

Literature

Totals

Europe

121,993

4,783

11,528,025

11,654,801

Asia

585,418

1,654

19,031

606,103

Africa

72,000

506

72,508

Americas

15,851

779,411

6,943

11,562,909

12,349,263

International Bible Students Association

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

GRANTS PAYABLE - continued

By activity:

Cash

Goods

Literature

Totals

Distribution of Bibles and Bible-based
literature

11,562,909

Supporting regional headquarters in their
administration of Christian missionary
work

779,411

6,943

786,354

779,411

6,943

11,562,909

12,349,263

GOVERNANCE COSTS

2011

2010

Auditors' remuneration

7,365

10,000

Auditors' remuneration for non-audit work

1,296

7,365

11,296

NET INCOMING/(OUTGOING) RESOURCES

Net resources are stated after charging/(crediting):

2011

2010

Auditors' remuneration

7,365

10,000

Auditors' remuneration for non-audit work

1,296

Depreciation - owned assets

1,240,701

1,101,274

Other operating leases

757,490

667,514

(Surplus)\deficit on disposal of fixed asset

(464)

3,748

Fixed assets donated overseas

15,666

71,840

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 Association has
close connections with Watch Tower, which prints Bible based literature and which is a registered charity with
similar objects. This charity also has the same registered office as that of the Association.

The trustees of IBSA receive no salary in their capacity as trustees. The trustees are also workers and they
receive a fixed allowance for personal expenses of £96 per month and a personal expense gift of £300 per year
with free board and lodging as indeed do all workers, including any close family members.where they are also
working for the charity.

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

International Bible Students Association

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

10.

TANGIBLE FIXED ASSETS

Freehold

property

Assets in the

course of

construction

Plant and

machinery

COST

At 1st September 2010

68,988,976

176,873

1,611,384

Additions

10,854,324

238,262

79,823

Disposals

(19,911)

(3,161)

At 31st August 2011

79,823,389

415,135

1,688,046

DEPRECIATION

At 1st September 2010

11,027,959

812,422

Charge for year

1,061,459

120,386

Eliminated on disposal

(4,245)

(2,845)

At 31st August 2011

12,085,173

929,963

NET BOOK VALUE

At 31st August 2011

67,738,216

415,135

758,083

At 31st August 2010

57,961,017

176,873

798,962

Fixtures and

fittings

Motor

vehicles

Totals

COST

At 1st September 2010

10,337

504,545

71,292,115

Additions

1,010

101,695

11,275,114

Disposals

(10,000)

(33,072)

At 31st August 2011

11,347

596,240

82,534,157

DEPRECIATION

At 1st September 2010

9,303

246,005

12,095,689

Charge for year

58,765

1,240,701

Eliminated on disposal

(9,000)

(16,090)

At 31st August 2011

9,394

295,770

13,320,300

NET BOOK VALUE

At 31st August 2011

1,953

300,470

69,213,857

At 31st August 2010

1,034

258,540

59,196,426

11.

STOCKS

2011

2010

Stocks - Electrical, Maintenance and Home supplies

136,521

111,603

International Bible Students Association

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

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2011

2010

Trade debtors

561

8,918

Other debtors

112,708

246,363

Due from associated charities

395,291

1,975,606

Prepayments and accrued income

729

1,166

509,289

2,232,053

13.

CURRENT ASSET INVESTMENTS

2011

2010

Listed investments

54,078

48,515

Market value at 1 September 2010

48,515

Additions

4,884

Disposals

(2,400)

Net gain on revaluation

3,079

Market value at 31 August 2011

54,078

Historical cost at 31st August 2011

66,831

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2011

2010

Trade creditors

991,582

1,234,029

Other creditors

437,473

428,354

Accrued expenses

8,950

10,000

1,438,005

1,672,383

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2011

2010

Other loans (see note 16)

6,125,000

16.

LOANS

An analysis of the maturity of loans is given below:

2011

2010

Amounts falling between one and two years:

Other loans - 1-2 years

6,125,000

International Bible Students Association

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

17.

MOVEMENT IN FUNDS

At 1.9.10

Net movement

in funds

Transfers

between funds

At 31.8.11

Unrestricted funds

General fund

56,505,303

9,732,770

5,451,602

71,689,675

Restricted funds

Capital grants fund

14,602

5,437,000

(5,451,602)

TOTAL FUNDS

56,519,905

15,169,770

71,689,675

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

27,820,842

(18,091,248)

3,176

9,732,770

Restricted funds

Capital grants fund

5,437,000

TOTAL FUNDS

33,257,842

(18,091,248)

3,176

15,169,770

Capital grants fund

This has arisen due to capital grants being received this year to enable the purchase of certain new fixed assets.
As the purchase of fixed assets discharges the restriction on these funds, a transfer to unrestricted funds is made
as new fixed assets are bought.

18.

RELATED PARTY DISCLOSURES

The Association has close connections with Watch Tower Bible and Tract Society of Britain ("Watch Tower"),
which prints Bible based literature and which is a registered charity with similar objects. This charity also has
the same registered office as that of the Association.

During the year, the Association 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 debtor 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, the Association charged Watch Tower
£4,425,669 (2010: £4,330,053) for these services. At the year end, Watch Tower owed the Association £387,404
(2010: £391,556) in respect of these transactions.

The Association 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 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), and this has been provided for in the
accounts as both an expense and an incoming resource.

International Bible Students Association

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

19.

GOING CONCERN

In view of current economic uncertainties, 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.

20.

RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH INFLOW FROM
OPERATING ACTIVITIES

2011

2010

Net incoming resources

15,166,594

7,798,955

Depreciation charges

1,240,702

1,101,273

(Profit)/loss on disposal of fixed assets

(464)

3,748

Interest received

(21,281)

(18,746)

Donated fixed assets received

(4,997,786)

(221,657)

Donated fixed assets

15,666

71,840

Investments received

(4,884)

(34,844)

(Increase)/decrease in stocks

(24,918)

733

Decrease/(increase) in debtors

1,722,764

(1,726,350)

(Decrease)/increase in creditors

(234,378)

1,035,134

Net cash inflow from operating activities

12,862,015

8,010,086

21.

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

2011

2010

Returns on investments and servicing of finance

Interest received

21,281

18,746

Net cash inflow for returns on investments and servicing of finance

21,281

18,746

Capital expenditure and financial investment

Purchase of tangible fixed assets

(6,277,316)

(6,169,375)

Sale of tangible fixed assets

1,780

4,024

Net cash outflow for capital expenditure and financial investment

(6,275,536)

(6,165,351)

Management of liquid resources

Cash inflows from investments received

2,484

11,866

Net cash inflow from management of liquid resources

2,484

11,866

Financing

New loans in year

3,000,000

Loan repayments in year

(9,125,000)

(4,744,474)

Net cash outflow from financing

(6,125,000)

(4,744,474)

International Bible Students Association

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

22.

ANALYSIS OF CHANGES IN NET DEBT

At 1.9.10

Cash flow Revaluation s

At 31.8.11

Net cash:

Cash at bank and in hand

2,728,691

485,244

3,213,935

Liquid resources:

Current asset investments

48,515

2,484

3,079

54,078

Debt:

Debts falling due after one year

(6,125,000)

6,125,000

Total

(3,347,794)

6,612,728

3,079

3,268,013

 





  









 

































 



















 



 



 



 



 



 














                  
 






  
                
                  

                
 


                 
 







 




  
 



 


                

  
 




   
  
   
 


               


                 
                
     
               
 





  



 



                   
       
   
 





                 
 







 


                   

 




 
                 
  
  

   



  
                      

  

  


                    
                  
   


                
  
    
  
                  
 


                    
 


             

                  


 







 







                
                   
 



                 
 


  
 






                  
                  
                 




 



 



 



 





                 












 



   














 
              

            
 


                  
  

 


                  





 


                
               
               
            
                 
                








                    





 



 


                   








 





 



 



 
























 





























































 






















  












































































  













  































  

























  













  














 



































































































  
























  













  














  













  















 



  







 



  



















 

















 







  









 















 





















































 



































































 






              
             









             



               



                   



              

 




  
 


 


               





           

 





       

 





     

 





     

 

 



    

 





               
 


                
 


 







 








                
 


                
 


                 







   




                 




 




 



























































  







  























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





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



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 

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



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 













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





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


 









 



















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

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

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







































  









  


                

 



































  







  























     







































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



















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 

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  











 

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  











     




















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 

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  











 



  






















     































































 



  











 



  



















     












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

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







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









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

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

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



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











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

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





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





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





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





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

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



                






                  


 


               


























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



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







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







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

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



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



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

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







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



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

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



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

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



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

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

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

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

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

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



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





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

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







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











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

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

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



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







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





















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  













  





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







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







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





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  



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





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  





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





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  



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





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  















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





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



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 

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









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





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













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





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



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 

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





 





















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



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 

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     



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



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



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



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









 





















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













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



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





 







































  











  

























































  











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  





 









             
                


                 








   



 



        






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

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





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





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





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





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





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





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





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





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





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









        












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

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





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





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



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  



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



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  









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



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

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

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



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

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



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



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





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



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

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

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



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

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



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

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

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

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Document Outline

2007-ibsa-financial-report
2008-ibsa-financial-report
2009-ibsa-financial-report
2010-ibsa-financial-report
2011-ibsa-financial-report
2012-ibsa-financial-report

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