Fully accrued accounts

Fully accrued accounts are detailed accounts which show income and expenses when they are earned or incurred, not necessarily the date when money is received or paid out.

Fully accrued accounts must be prepared if at least one of the following applies to your charity:

• Has a gross income for the year of £250,000 or more
• Is a company or a Registered Social Landlord or a Community Benefit Company or a Higher or Further Education Institution
• The governing document or any enactment of Parliament says the charity should prepare fully accrued accounts, or accounts that give a true and fair view of its financial affairs
• A third party, for example a funder, requires fully accrued accounts
• The trustees have decided that they will prepare fully accrued accounts

Because fully accrued accounts are more complex and have additional requirements compared to receipts and payments accounts, trustees should fully consider the implications of deciding to prepare fully accrued accounts if they are not otherwise required.

Reading this guidance will help you to understand:

• How to prepare fully accrued accounts in accordance with the SORP
• The information and documents you need to include
• What type of external scrutiny should be carried out