The uncertain economic environment is having a significant effect on the ability of charities to deliver their services. Uncover the key risks and challenges that lie ahead in our 2024 charity sector development report.
Yet again, the charity sector is being asked to 'do more, with less'. Higher costs and lower income are making for a difficult period, with resilience needed more than ever.
Our 2024 report reviews these current risks along with emerging issues such as cyber security, future-proofing the workforce, and the need for robust policies and procedures for investments, reserves, and going concern assessments. It also includes insight on the proposed revisions to ISA 250 and what this means for charities and their auditors.
Anticipated changes to the legal and political landscape, updated guidance for charitable incorporated organisations (CIOs), and a revised exposure draft for the potential new international not-for-profit accounting framework round off the report.
We summarise these financial reporting proposals and remind you to be aware of significant reporting changes on the horizon, along with top tips on achieving clarity in the annual report.
FRS 102 revisions
The FRC has published its revisions to FRS 102 at the end of March 2024. This is applicable to accounting periods beginning on or after 1 January 2026.
The main changes are a new five-step model for revenue recognition, and the introduction of all leases onto the balance sheet (with exceptions for short-term and low-value leases).
The charity sector should be aware of these changes, and we await guidance for implementation specifically for charities in the form of a revised SORP, or SORP addendums. We'll share guidance and support on this in due course.
For more insight, or to offer any feedback or suggestions for future editions of our annual report, get in touch with our team using the details below.
