Community support is vital to the charity sector; each year Australians donate $11 billion and three million of us volunteer. Access to reliable, accurate, and up-to-date information about registered charities underpins this generosity.
The financial information provided by registered charities is the cornerstone of the Australian Charities and Not-for-Profits Commission (ACNC’s) regulation of the charity sector. This information significantly increases transparency and accountability, and helps promote public trust and confidence. For this reason, it is critical that financial reporting by charities is clear and objective, while also balancing the needs of users with the cost of providing the information by preparers.
Since it was established in 2012, the ACNC has made significant inroads in improving the reporting framework for charities, and harmonising ACNC and state and territory regulatory requirements. But there is still work to do.
With the upcoming ACNC legislative review soon to commence, now is the time for charity stakeholders, the ACNC and other regulator to come together to discuss how the reporting framework can be further improved.
To view the full AASB discussion paper, click here.