Financial reporting by charities: a matched case study analysis from four countries

Abstract

This paper analyses financial reporting requirements applicable to charities in four jurisdictions—Australia; England; Ireland; New Zealand—using case study analysis which compares the actual financial statements of four charities operating in the same field and with similar levels of total income. The authors highlight common issues and implications in terms of the concepts underpinning not-for-profit organization (NPO) financial reporting and argue the case for harmonized international NPO accounting standards.

Keywords:

• Charity accountability
• financial reporting by charities
• international NPO accounting standards

Acknowledgement

The authors wish to acknowledge the support of Claus Koss of the University of Applied Sciences Regensburg, Germany, for helpful comments.

Notes

* The investment of charitable funds in the trading company has yet to provide a return to the parent charity.

Additional information

Notes on contributors

Janet Mack

Janet Mack is Senior Lecturer in Accounting at Queensland University of Technology, Brisbane, Australia.

Gareth G. Morgan

Gareth G. Morgan is Emeritus Professor of Charity Studies, Sheffield Hallam University, UK.

Oonagh B. Breen

Oonagh Breen is Senior Lecturer in Law at University College Dublin, Ireland.

Carolyn J. Cordery

Carolyn Cordery was Associate Professor in Accounting, Victoria University of Wellington, New Zealand when this research was carried out. She is now Professor of Accounting, University of Aston, Birmingham, UK.