REGISTERED COMPANY NUMBER: SC829411 (Scotland)

REGISTERED CHARITY NUMBER: SC054803

Report of the Trustees and

Unaudited Financial Statements

for the Period 19 November 2024 to 31 December 2025

for

If Scotland Limited

Page

Report of the Trustees

1

Independent Examiner's Report

3

Statement of Financial Activities

4

Balance Sheet

5

Notes to the Financial Statements

6

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 period 19 November 2024 to 31 December 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

INCORPORATION

The charitable company was incorporated on 19 November 2024 .

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of IF Scotland are:

(a) Fostering citizenship by encouraging participation in and debate about the future development of Scotland; through the production, commissioning, publication and dissemination of research and activities on topics including:

- the economy and industry

- health and wellbeing

- arts and culture

- governance and parliamentary oversight

- defence and security

- and other related matters.

(b) Education of the public in these areas and other areas relevant to the advancement of the public in Scotland.

(c) To advance such other exclusively charitable purposes as the Trustees in their absolute discretion determine.

In furtherance of the above, the Trustees shall have power to engage in political activity, provided that the Trustees are satisfied that the proposed activities will further the purposes of the charity to an extent justified by the resources committed to the activity and the activity is not the dominant means by which the charity carried out its objects.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

The Institute for Scotland (IF Scotland Ltd) had a successful first year. After vesting, we were able to bring together an experienced team of Trustees to guide the initial work of a three-year plan to enhance the debate around the future development of Scotland.

Year one focused primarily on identifying the root causes of Scotland's economic and social underperformance compared with other Small Advanced Economies. Building on existing research and economic data, the team liaised with economists, industrialists and academia to identify the problems, evidence the scale of these problems and distil clear conclusions from the work. This formed the bulk of our undertakings in the first phase of the project.

The conclusions drawn from phase 1 of the work will be used to develop a clear, concise strategy to improve Scotland's economic and social performance. This next phase of work will form the foundation of the Institute's efforts in its second year.

FINANCIAL REVIEW

Financial position

During the year there was income of £1,063 with expenditure of £17,589 leading to a deficit of £16,526.

As planned, the initial spending of the Institute has been covered by Trustees. Given the modest outlays required in the first two years of our plan, we have focused on building network, liaising with organisations who can help with or benefit from our work, and establishing a reputation for discrete, solid research as our body of work grows. Building on this track record, we are laying the foundations for the income required in Year 3 of the programme.

Reserves policy

The charity currently has negative reserves of £16,526. As mentioned above the Trustees are currently supporting the charity over the Year 1 start up phase.

A plan to build reserves will be formulated in Year 2, ahead of Year 3 - the year of promotion and dissemination.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

IF Scotland Ltd is a Company Limited by Guarantee, as defined by the Companies Act 2006. It is governed by its Memorandum and Articles of Association.

IF Scotland Ltd became registered as a charity with OSCR on 4 December 2025.

Recruitment and appointment of new trustees

It is expected that new Trustees will be recruited as required by our research findings, and who can help guide the future direction of our work. At the appropriate time, we will also appoint Trustees who are able to enhance, accelerate and promote our work to a wider audience, especially in Year 3.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC829411 (Scotland)

Registered Charity number

SC054803

Registered office

60 Constitution Street

Leith

Edinburgh

Lothian

EH6 6RR

Trustees

Alan John Clayton Director (appointed 19.11.24)

David Simon Forrest Director (appointed 19.11.24)

Cynthia Florence Guthrie Director (appointed 4.3.25)

Sarah Lynagh Director (appointed 4.3.25)

Fraser Thompson (appointed 19.11.24) (resigned 4.3.25)

Graeme Blackett (appointed 1.4.25) (resigned 12.12.25)

Independent Examiner

Cowan & Partners Limited

60 Constitution Street

Edinburgh

EH6 6RR

Approved by order of the board of trustees on 17 August 2026 and signed on its behalf by:

David Simon Forrest - Trustee

I report on the accounts for the period 19 November 2024 to 31 December 2025 set out on pages four to nine.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

Basis of the independent examiner's report

My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

Independent examiner's statement

In connection with my examination, no matter has come to my attention :

(1)	which gives me reasonable cause to believe that, in any material respect, the requirements

-	to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

-	to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations

have not been met; or

(2)	to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Mathew Gillies LLB (Hons) ACPA FCIE

Full member of the Association of Charity Independent Examiners

Cowan & Partners Limited

60 Constitution Street

Edinburgh

EH6 6RR

17 August 2026

Unrestricted

fund

Notes

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

13

Charitable activities

3

Charitable Activities

750

Other income

300

Total

1,063

EXPENDITURE ON

Charitable activities

4

Charitable Activities

17,589

NET INCOME/(EXPENDITURE)

(16,526

)

TOTAL FUNDS CARRIED FORWARD

(16,526

)

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The Statement of Financial activities includes all gains and losses recognised in the year.

Unrestricted

fund

Notes

£

CURRENT ASSETS

Cash at bank

1,469

CREDITORS

Amounts falling due within one year

8

(17,995

)

NET CURRENT ASSETS/(LIABILITIES)

(16,526

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(16,526

)

NET ASSETS

(16,526

)

FUNDS

9

Unrestricted funds

(16,526

)

TOTAL FUNDS

(16,526

)

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 December 2025.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 December 2025 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 17 August 2026 and were signed on its behalf by:

David Simon Forrest - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts are presented in sterling which is the charity's functional currency, and rounded to the nearest pound.

No changes have been made to the basis of preparing the financial statements.

Going Concern

As discussed in the reserves policy on page 2 , the trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern and therefore the accounts are prepared on a going concern basis.

Accounting estimates and areas of judgement

The preparation of the financial statements confirms with the requirements of the Charities SORP and generally accepted accounting principles. There have been no accounting estimates or areas where judgment have been applied.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. 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.

Taxation

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

Fund accounting

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

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

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

Measurement of debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at Bank and on Hand

Cash at bank and on hand includes cash and any short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and Loans

Creditors and loans are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and loans are normally recognised at their settlement amount after allowing for any trade discounts due.

VAT

IF Scotland Ltd is not registered for VAT. Therefore expenditure is recognised inclusive of VAT paid.

2.	DONATIONS AND LEGACIES

Unrestricted

funds

£

Donations

13

3.	INCOME FROM CHARITABLE ACTIVITIES

Activity

£

Articles

Charitable Activities

750

4.	CHARITABLE ACTIVITIES COSTS

Direct

Costs (see

Support

note 5)

costs

Totals

£

£

£

Charitable Activities

16,089

1,500

17,589

5.	DIRECT COSTS OF CHARITABLE ACTIVITIES

£

Staff costs

15,811

Computer software

90

Sundries

7

Travel & subsistence

29

Legal & professional fees

144

Bank charges

8

16,089

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the period ended 31 December 2025.

Trustees' expenses

There were no trustees' expenses paid for the period ended 31 December 2025.

7.	STAFF COSTS

£

Wages and salaries

14,000

Social security costs

1,811

15,811

The average monthly number of employees during the period was as follows:

Employees

1

No employees received emoluments in excess of £60,000.

8.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Other creditors

1,495

Director/Trustee Loan - AC

5,000

Director/Trustee Loan - DSF

10,000

Accrued expenses

1,500

17,995

9.	MOVEMENT IN FUNDS

Net

movement

At

in funds

31.12.25

£

£

Unrestricted funds

General fund

(16,526

)

(16,526

)

TOTAL FUNDS

(16,526

)

(16,526

)

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

1,063

(17,589

)

(16,526

)

TOTAL FUNDS

1,063

(17,589

)

(16,526

)

10.	RELATED PARTY DISCLOSURES

During the year, loans were received from Trustee's totalling £15,000. At the year end £15,000 is outstanding, with no set repayment terms.

A donation was received from a Trustee of £13.

A former director (who resigned prior to charity registration) received remuneration of £15,811 including any employers national Insurance and pension contributions.