Regulators publish guidance for large charities on new reporting requirements

Under new rules, large and medium-sized companies are required to produce a strategic report in their annual reports and accounts

Charity Commission
Charity Commission

The Charity Commission and the Office of the Scottish Charity Regulator have published guidance designed to help large charities comply with new reporting requirements.

The Companies Act 2006 was updated last year to introduce a requirement on all large and medium-sized companies to produce a strategic report in their annual reports and accounts, instead of a business review.

The new rules say that the strategic report should include information including contextual detail on the financial accounts, an analysis of the organisation’s performance and insight into the charity’s objectives and the risks it faces.

It applies to charities set up as companies and will generally apply to those with annual turnovers of more than £6.5m, the Charity Commission said.

It covers financial periods ending on or after 30 September 2013. 

The commission and the OSCR said that the change does not require a revision of the current Statement of Recommended Practice, although the updated Sorp, which is expected to be published later this year, will include the changes announced today.

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