The impact of new reporting requirements on local charities in the Waikato region

Charities play a significant role in society. Over 27,000 charities work in New Zealand for the welfare of the community. Prior to 2015, there was no mandatory requirements for financial reporting; however, some charities used “the for-profits standards”. But there was evidence of poor accounting standards. Since 2015, there was a significant change in reporting requirements issued by XRB. The main purpose of new reporting standards was to improve transparency, accountability and public trust. The new accounting standards brought more transparency and disclosure of non-financial information. There were a few negative impacts of this new regime as charities had insufficient knowledge about new standards, which resulted in deficient quality of reports. This research seeks to investigate the impacts of new reporting requirements on local charities in the Waikato Region. The method carried out for the research was semi-structured interviews. Under this method the accountants of three different charities in the Waikato Region were interviewed. The findings of the study were arrived at based on the analysis conducted. Some of major findings of the study criticised the new changes as they increased the workload of charities and created other related issues. There were some issues related to revenue recognition, and the outcomes were long term. It was a mixed review by the charities on the effectiveness of the “Charity Services”. The study concluded that the aim of new regime was for increased accountability, which may not have eventuated, as according to the research the charities instead face issues of workload, outcomes and revenue recognition

Impact of new reporting requirements on local charity organisations in the Waikato

Before the new reporting requirements came into effect in April 2015, charity organisations had no reporting requirements, and many charity organisations did not prepare financial statements. The aim of this research is to investigate the impact of the new reporting requirements on charity organisations. A qualitative research method in which semi-structured interviews of three charity organisations were carried was used for this research. Each organisation interviewed falls under a different tier according to the new reporting requirements. This will provide information on the impact of new reporting requirements for charity organisations which fall under different tiers. The results of the research are that the new reporting requirements have had some positive and negative impacts. They encourage transparency, provide marketing opportunity, produce difficulties in revenue recognition, and increase costs for charities. There is also a template issue. The findings are compatible with those of the literature review, for instance, that the new reporting requirements have encouraged transparency. Furthermore, charity organisations need more guidance and training regarding the new reporting requirements so that charity organisations can overcome the issues of revenue recognition and understanding the templates

Impact of new reporting requirements on local charities in the Waikato region

This study is designed to analyse the impact of new reporting requirements on local charities in the Waikato Region. A charity can be defined as an entity that is established to provide a public benefit. In New Zealand, there are 27,000 registered charity organisations. Prior to 2013, it was not a mandatory requirement for charities to prepare financial statements. There was evidence of a lack of accountability. The Financial Reporting Act, 2013 was introduced to improve transparency in financial reporting of charities. All charities are now required to follow the accounting standards implemented by XRB (External reporting board). XRB divides the charities into four tiers which are based on volume and size of expenses. Due to new reporting requirements, it is difficult for the charities to understand the new requirements. Semi-structured interview was the method chosen for data gathering purposes in this research. Sample size for this interview was three accountants. From findings, one out of three accountants thinks that the new reporting requirements are restrictive in nature, as past reporting requirements were flexible. According to the second accountant, the reporting requirements are positive because they increase the accountability and comparability of charity organisations. All accountants of the charities commented that the new reporting requirements are complex and increased costs. In conclusion it can be said that the amendments of the new reporting requirements are challenging for some charities but these changes are designed to for improve the accountability and transparency of financial reporting of charities in New Zealand

Financial reporting in charities of NZ

This paper reports key findings from the three charities organisations based in Waikato region. Historically there was a poor accounting. No legal requirements to produce financial statement before 2013. Financial Reporting Act (FRA) 2013 requires all registered charities to produce Generally Accepted Accounting Practices (GAAP). From 1 April 2015 new reporting standard requirements became operative. Now the government is pulling out of social work and getting charities to do more work because the government is saying if we are funding you money we seek accountability. And government do this because local charities are in the community and know how to do it in a better way. Standards are operationalised by External Reporting Board (XRB) through four new tier structure that has different requirements for different entities. There are several well-known problems experienced by these charities. Difficulty in completing the tasks on time. A review of relevant literature reveals that this is a problem. The research discovers that these three charities are supportive of new requirements. Analysis of the survey results showed that 52% charities didn’t spend any money in adopting new standards. We have two years of operationalising new financial standards. There are many people who have made comments on what will happen. So, It’s now interesting to find out and do research on these three charities organisations. This research then aims out what has happened to these charities. The research will reveal are these three charities are satisfied with new reporting standards

Issues in Converting to the Xero Accounting System Platform

In current times it has been seen an increased uptake of client organisations moving to the Xero accounting system platform. With increased uptake, there has been increased exposure to risk and issues upon implementing the new system. Literature supports the idea that shifting accounting systems can be a relatively risk involved process and various considerations should take place. This report seeks to summarise the current environment leading consumers to use Xero as an accounting system, identify the major issues faced upon converting to Xero platform and the risks of conversion, and identify the key considerations which may aid in reducing the level of risk involved in a Xero conversion. To do this six semi-structured interviews were conducted with employees of a Hamilton office with a thematic analysis conducted on the results to draw conclusions. It was found that the time element, data and change management were the main factors surrounding issues upon converting to the Xero accounting system platform. Recommendations determined from the analysis are that the organisation could implement a more stringent and structured change management programme surrounding new conversions, including the introduction and adaptation of process diagrams as change management tools. Investment in training client employees as change drivers would also prove beneficial. The organisation Hamilton could also implement a structured communication plan for clients during and post conversion, and invest in continuous training for both staff and clients of the firm. The study undertaken was limited by the organisational context, being focussed on a sample taken from six employees only, therefore, generalisations may not be able to be made from this research of the holistic conversion environment. Further research may involve the surveying of external parties such as clients to increase the reliability and validity of the results

The impacts of the new financial reporting regime on charities

Prior to 2015, there were no mandatory reporting requirements for charities in New Zealand and many criticisms existed of the old practices. Therefore, new reporting requirements were issued to improve transparency, accountability and comparability on charities in 2013 and the effective date was set to be April 1st, 2015. This research aims to investigate the impact of the new financial reporting regime on charities after three years of implementation. To achieve the objective, qualitative methods were applied in this research and the data was collected through three semi-structured interviews which were conducted with accounting staff from three different registered charities. The results showed that some charities approved of the new regime, as it improved transparency, accountability and governance to them, but some of them thought it had brought more inconveniences. It also revealed that some charities’ internal accounting staff still do not entirely understand the new standards, so it is suggested that the government may consider providing more professional training to them, especially for small charities. However, all three charities involved in the research agreed that after three years of implementation, they felt more comfortable about the new regulations

The impact of new financial reporting standards on charities in New Zealand

The whole paper is based on the impact of the new financial reporting requirements on charities in New Zealand issued by the External Reporting Board (XRB). The new reporting requirements came into effect on 1st April 2015. The compliance with the new reporting standards which is called generally accepted accounting practice (GAAP) is mandatory for all the registered charities in New Zealand. According to new reporting standards, charities are required to prepare general purpose financial reports (GPFR), which is further followed by the Tier system. The research is based on the semi-structured interview methods and two local (Waikato) charities have been interviewed. The research also focuses on the historical criticism and the current literature of charity accounting. Semi-structured interviews helped the researchers to go through the deep insights of the topic. Thematic analysis has been carried out for the findings and conclusions. It has been concluded in this research that the new reporting standards have significantly increased the accountability of the charities. However, there are few of the charities who are non-compliance with the new reporting standards

An insight into the experience of Waikato charities and their transition to the new charity reporting regime

Prior to 2015, there were no requirements for charities in New Zealand to produce financial reports. Prospects and evidence of poor accounting eventually led to vast criticism and debates as to the lack of standards that demanded accountability and transparency. Because the sector’s primary survival is dependent on public trust and confidence, proposed changes resulted in a statutory reform in New Zealand and the introduction of new accounting and auditing standards. This study aims to explore the impact that the new accounting and auditing standards have had on charities in the Waikato region. This research intends to answer the following question: “How have the new financial reporting standards impacted on charities in the Waikato region?” Three semi-structured interviews were conducted on treasurers of three Waikato charities to answer this question. These charities were from different tier levels; Tier 2, tier 3, and tier 4. Qualitative data was collected from these interviews and analysed using a narrative approach. This study found that all charities who participated were impacted to varying degrees. The charities who had complied experienced to some degree an increase in accounting and/or auditing cost. In regards to accountability and reporting, the study found that the knowledge and expertise of the preparer of the financial reports is the main factor which contributes to the compliance of the charities and the impact that they experience. The changes were found to be more onerous and demanding for the smaller charities, especially those reliant on volunteers

What’s in it for me? Accounting students’ perceptions of WIL

This research seeks to identify the alignment between the perceptions of students and employers/academics around WIL.It summarises a survey of Wintec accounting students in identifying the differences between those working and those not? It seeks to identify if students' perceptions change over time with exposure to WIL and what value students place on the technical and soft skills required in accounting