Financial reporting by charities: the impact of recent changes to accounting standards and assurance requirements

Kater Peterson-Palmer, Nelson Marlborough District Health Board

Sue Malthus, Nelson Institute of Technology

Abstract: This study investigates the effects of recent statutory changes to the financial reporting and auditing requirements for small and medium-sized registered charities in Nelson, New Zealand. Semi-structured interviews were conducted with five charities to explore the impact of the new accounting standards, financial reporting and auditing requirements, and implementation processes. The findings suggest that all the charities have experienced an increase in accounting and auditing cost, but the changes affect more to the smaller charities than the larger ones. Furthermore, while the charities believe that the new standards are confusing and time-consuming, the changes in new reporting format would be beneficial due to its standardisation, improved readability and comparability.


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