Arts Professional have produced a useful guide for arts organisations (and museums!) on a significant change in accounting (FRS102) which will be introduced in January 2015.
The article’s author, Mahmood Reza (www.proactiveresolutions.com), explains some of the key changes:
Greater clarity on accounting for and recognition of grants (performance vs accrual model).
Cash flow statements (three main headings and small charities will have to prepare a cash flow).
Donated goods and services (if significant these will have to be valued on receipt by the organisation).
Revaluation gains (to be recorded as income).
In addition, there will be some new terminology. For example, a balance sheet will be known as a ‘Statement of financial position’ and a cash flow statement as ‘A statement of cash flows’.
One of the key drivers behind the change is internationalisation, ensuring that the UK accounting rules and standards are consistent with international standards and rules.
Read the whole article here: All change in financial accounting: FRS 102| ArtsProfessional.