Draft accounting standard for public benefit entities is published

Finance | Tania Mason | 21 Mar 2011

The Accounting Standards Board has published its proposals for how public benefit entities should account for sector-specific transactions in the new Financial Reporting Standard for Medium-Size Entities.

The proposals are contained in a document known as Fred 45 – Financial Reporting Exposure Draft 45 - and once agreed they will be included in the new financial reporting standard for charities and other organisations that exist for the public benefit. This sector-specific standard will exist alongside the generic standard mentioned above.

This standard is being devised because generic international accounting standards are written for the commercial sector and do not address some transactions that are specific to public benefit entities.

The new proposals now out for consultation by the ASB address various issues including:

Concessionary loans
Property held for the provision of social benefits
Entity combinations
Impairment of assets
Funding commitments; and
Incoming resources from non-exchange transactions (donations etc).

Roger Marshall, chairman of the ASB, said many of the proposals mirror the requirements in the existing Sorp “and are therefore consistent with current practice”. The draft also seeks to reinstate the requirements of FRS 30 ‘Heritage Assets’ into the standard.

The consultation will run until 31 July 2011 and the ASB is planning that the new public benefit entities standard will take effect at the same time as the new generic accounting standard – for annual reporting periods beginning on or after 1 July 2013. The consultation on the draft generic standard closes on 30 April 2011.

Comments

[Cancel] | Reply to:

Name *

Email *

Organisation

Job Title

Comments *

Verification *

* Please read our Community Standards

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

Robust but respectful debate
Strongly held opinions
Intelligent relevant discussion
The sharing of relevant experiences
New participants

We will not publish:

Rude, threatening, offensive, obscene or abusive language, or links to such material
Links to commercial organisations or spam postings. The comments board is not an advertising platform
The posting of contact details for yourself or others
Comments intended for malicious purpose or mindless abuse
Comments purporting to be from another person or organisation under false pretences
Gratuitous criticism, commentary or self-promotion
Any material which breaches copyright or privacy laws, or could be considered libellous
The use of the comments board for the pursuit or extension of personal disputes

Be aware:

Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
Comments left by others may not be accurate, do not rely on them as fact
You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

Enjoy the opportunity to express your opinion and respect the right of others to express theirs
Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.