For societies to which updated financial reporting and assurance requirements do not already apply e.g., those that report under the Charities Act 2005, the legislation has historically been to prepare financial reports but there has not been a prescribed standard or format to follow which has meant it is difficult to compare information presented by different societies.
The proposed act will require reporting using standards issued by the External Reporting Board (XRB) per the flow chart below if any of the questions on the left are answered with a yes:
If there is a requirement to prepare under the XRB standards, then tiered (size based) requirements for financial statements will apply which means determining which Tier the organisation falls under and the transition from special purpose financial reporting to XRB standards including any restatements of prior year amounts.
Your local BDO accounting and advisory services teams have extensive experience in preparing XRB compliant accounts and can be contacted for more information and support.
The financial reports must be prepared and registered by all societies to the Registrar within 6 months of balance date.