When it comes to preparing parochial church council accounts, capitalisation is one of the major risk areas to watch out for. Careful consideration is required when considering the financial reporting of any improvements or maintenance costs incurred to the fabric of the parish church building itself. Other buildings which are separate from the church itself, ie, church rooms or a centre are excluded from these considerations.

This dilemma will impact all church accounts produced by the Parochial Church Council (PCC) as the executive committee of a Church of England parish. The PCC consists of clergy and church wardens of the parish together with representatives of the laity.