Craig Fisher of RSM Hayes Audit has just published an interesting article on the new financial reporting structure with which charities will have to comply. The article starts:
The biggest change in financial reporting in 20 years, and for many charities; the biggest change to their financial reporting ever, has recently been legislated. We look at the opportunities this presents for the entities themselves as well as for funders and stakeholders.
The financial reporting reform enacted in 2013 has heralded the most significant change ever in the financial reporting requirements imposed on charities in New Zealand’s history. For most charities the law changes have also clarified whether or not independent assurance over these financial statements is required by law.
While a natural reaction of many charities will be to look at these changes as a compliance burden and just making their lives harder – this initial reaction while understandable is perhaps a little misguided. In fact the changes present charities with some potentially very beneficial opportunities – if they recognise these and proactively set out to take advantage of them.
The “Why” of the Changes
Before looking at the implications and opportunities of the changes it is, as with most things in life, very useful to understand the rationale or key reasons that led to the changes – “The why” … <Read the full article here>
Other posts on this subject