DSD Consultation on Accounting and Reporting by Charities
The Regulations will apply to charities’ financial years which start on or after 1 January 2016.
The Regulations will provide more detail for the accounting and reporting framework under Part 8 of the Charities Act (Northern Ireland) 2008. They will make provision in respect of the preparation and scrutiny of accounts prepared by charities and the preparation of annual reports by charities. The Regulations will also make provision in respect of the preparation and scrutiny of group accounts and the preparation of group annual reports by parent charities.
The Regulations will have an impact on all charities, in particular small to medium sized charities who could find that they may be required to change the way they prepare their accounts.
The extent of the accounting and reporting requirements will depend on the gross annual income of the charity. It is proposed that charities with a gross annual income of up to £100,000 can prepare receipts and payments accounts. Otherwise, accruals accounts will need to be prepared and this will be done according to the financial reporting standard (FRS 102) and applicable SORP.
The consultation document will also consider the level of the thresholds for the external scrutiny of accounts (audit or independent examination), as well as the thresholds for the preparation of accruals accounts. NICVA will be issuing a briefing paper in the coming weeks on some of the key issues that may affect charities.
It is important that charities engage with this consultation which gives them the opportunity to comment on the proposed Regulations and the thresholds.
The Department for Social Development, in collaboration with NICVA, is hosting a seminar on Friday, 25 September at NICVA, from 10.00am to12.30pm, to assist those wishing to respond to the consultation. Registration and refreshment from 9.30.
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