Issues for charities applying the new requirements for financial reporting

Bernal, Cherry and Bosman, Rudi (2018) Issues for charities applying the new requirements for financial reporting. Applied Management Conference, Hamilton, New Zealand, 23-25 October, 2018.

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Abstract or Summary

This research is to determine the issues that charities/non-profit organisations (charities/NPOs) have encountered when applying the new requirements for financial reporting introduced in 2015. Currently in New Zealand, there are 27,217 registered charities affected by these new requirements. This primary, semi-structured research uses a quantitative method and a convenience approach. Literature reviews were gathered and divided into seven themes, from which the questionnaire survey questions were developed. Nine charities/NPOs in New Zealand respondent to the questionnaire survey with results showing 45% of respondents were under Tier 4; 33% for Tier 3 and 22% for Tier 2. Results further revealed that 67% of the respondents find the new requirements clear. The majority of respondents (56%) also indicated increased accounting costs as a result of applying new requirements for financial reporting. Also, 66% respondents indicated a need for staff training. Overall the new requirements for financial reporting have a positive side as they ensure that financial reports are standardised, comparable, readable, consistent, reliable, and transparent to users such as donors, benefactors, government agencies, businesses, funders, and stakeholders. Thus, the financial reports help in the decision-making of external users.

Item Type:Paper presented at a conference, workshop or other event, and published in the proceedings
Keywords that describe the item:charities, financial reporting, business, non-profit
Subjects:H Social Sciences > HF Commerce
Divisions:Schools > Centre for Business, Information Technology and Enterprise > School of Business and Adminstration
ID Code:6438
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Deposited On:13 Dec 2018 03:29
Last Modified:13 Dec 2018 03:29

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