An Introduction to Charity Financial Statements - Latest Requirements & Best Practice Explored
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 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 links 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 introductory level 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 financial statements. 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’ in a charity
- 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 range of common income streams and how these are accounted for in a charity’s financial statements.
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
- 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, source of the rules, who can act as an examiner and the procedures involved
- Whistle blowing duties that apply to independent examiners and auditors
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 those areas that commonly arise in the audit of charities
This webinar was recorded on 22nd October 2020
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