Charities - All Change (But Not Just Yet)

There are changes ahead for charity financial reporting.

In the UK, the Accounting Standards Board (ASB) has had a long-term goal of converging United Kingdom Generally Accepted Accounting Practice (UK GAAP) with international accounting standards. However, until now the complexity and quality of the international standards has prevented progress. This has changed with the publication of IFRS for SMEs, which is a self contained standard aimed at small and medium-sized entities.

The ASB proposes to radically change UK GAAP – existing standards will be replaced by a UK version of IFRS for SMEs (the FRS for medium-sized entities or FRSME for short). The only exception is the Financial Reporting Standard for Small Entities (FRSSE) which will continue to be extant. In the UK, possible financial reporting standards will be: