Home Accounting and Auditing NPOs in the UK to get Micro Gaap

NPOs in the UK to get Micro Gaap

It is well overdue that South Africa allows the cash basis of accounting for small companies and NPOs

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The UK is considering implementing a new micro accounting regime based on a receipts and payments basis for NPOs.

It is proposed that NPOs with an annual income of less than £250,000 will qualify for the new regime.

However two concerns were raised about the possible adoption of a the receipts and payments basis of accounting, it “could present a misleading picture of longer-term financial sustainability” and not provide a true and fair view. In addition it may not be compliant with the rules applicable to NPOs that are also registered as companies.

According to the Charities Commission “It was estimated that around two thirds of those charities which are companies would meet the current threshold to prepare receipts and payments accounts.”

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