Draft accounting regulations released for consultation

Accounting Standards Board publishes proposed new rules for charities

Charity accounting procedures
Charity accounting procedures

The Accounting Standards Board has released new draft accounting rules for charities as part of a wider consultation into new financial reporting standards.

The rules include a number of changes that the ASB had already suggested it would put into place, such as incorporating a proposed financial reporting standard for public benefit entities (PBE) into the general standard.

The document also confirms that the ASB will not introduce new rules requiring charities to account for all donated goods when they are received, a procedure that charity shops feared would add extra expense to their operations.

Instead, charities will only be obliged to consider "whether the resources can be reliably measured and whether the benefit of recognition outweighs the costs".

Consultation on the standards is open until 30 April this year. The statement of recommended practice for charities, which will be based on the PBE standard, will be drawn up and consulted on once the current rules are finalised.

A spokeswoman for the Charity Finance Directors’ Group said: "Standards that are specific to public benefit entities can now be found in Fred 48 which is the proposed new ‘Financial Reporting Standard applicable in the UK and Republic of Ireland’."

She said the CFDG would respond to the consultation "to ensure that the final standards do not impose a disproportionate or costly burden on charities and are fit for purpose".

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