Charity Financial Statements - Latest Requirements & Best Practice Explored

Introduction

Charities play an important role in our society but the nature of their income, how they spend it and the reason they exist at all set them apart from most other organisations that prepare accounts.

As a result, there are some key differences between the annual reports of charities and those of other entities.

This suite of 6 x introductory webinar modules will use case studies and real-life examples to provide a detailed insight into the key accounting treatments and disclosures that are unique to charities and link these back to the principles that underpin charitable status.

Focussing on the latest requirements and best practice, this series also looks at the key considerations for performing an audit or independent examination of a charity.

These modules are targeted at accountants and auditors with limited experience of charity accounts. A basic understanding of general accounting principles is assumed.

What You Will Learn:

This webinar series will cover the following:

Module 1 - The Legal and Regulatory Framework and Content of Charity Accounts

• An overview of the laws and regulations that provide the framework for charities in the UK
• The benefits of charitable status, the obligations that come with it and how these are reflected in the statutory reporting requirements
• The role of charity regulators, trustees and the Charities SORP
• The reporting and scrutiny requirements for different types and size of charity

Module 2 - The Trustees Annual Report, Fund Accounting and Reserves

• The Trustees’ Annual Report (TAR) is an important part of a charity’s annual report. It allows trustees to explain what the charity has achieved in the year and the challenges it has faced
• The key requirements for the TAR as set out in the SORP
• The concept of ‘reserves’ and forming a reserves policy
• The requirements for ‘fund accounting’ which is an integral part of charity accounting

Module 3 - Income

• A key difference between charities and other entities is the source of their income which can arise from both exchange and non-exchange transactions. This module looks at a range of common income streams, how these are accounted for and some of the challenges that commonly arise in practice.

Module 4 - Cost Accounting and Other Key Disclosures

• The unique position of charities and the diversity of their stakeholders means that, in a number of areas, disclosure requirements are more onerous than for other entities, particularly smaller entities.
• This module sets out the key disclosures found in charity accounts and considers why they are required
• These include disclosures around the allocation of costs, analysis of funds, staff and trustee remuneration and related party transactions

Module 5 - Independent Examination

• A large number of charities are below the audit threshold but many require an independent examination of their financial statements.
• This module covers the key aspects of an independent examination including its purpose, who can act as an examiner and the procedures required.
• Understanding the circumstances in which independent examiners and auditors are required to report matters to the charity regulator.

Module 6 - Audit Considerations

• An audit is an audit, right? Well yes it is, but there are a number of important differences between charities and other entities that can often present unique challenges to auditors of charities.
• This module builds on existing audit experience and applies it to areas that commonly arise in the audit of charities.

This webinar was recorded on 26th September 2024

You can gain access to this webinar and 1,700+ others via the MBL Webinar Subscription. Please email webinarsubscription@mblseminars.com for more details.