upcoming changes to charity accounting and reporting. These changes aim to make accounting more proportionate to the size of the charity. Understanding these changes will help charities prepare for the new rules.

Key changes include:

• Income and lease arrangements – new accounting rules with practical examples to help charities
• Three new tiers to ensure reporting is more proportionate to the charity’s size:
  • Tier 1: Income up to £500,000
  • Tier 2: Income between £500,000 and £15 million
  • Tier 3: Income over £15 million
• Trustees’ Annual Reports requirements have been refreshed with additional guidance on how to report financial reserves and plans about the future. There are also dedicated sections and guidance on areas that are of particular interest to the public and donors, including impact reporting, environmental, social and governance issues
• Social investments – simplified accounting and reporting requirements
• Provisions and contingencies – easier to understand reporting requirements