Treasurers > Reporting and Accounting > Accruals Accounts

Reporting and Accounting:  ACCRUALS ACCOUNTS

This section provides guidance for those PCCs who are producing accounts on the Accruals method of accounting. 

• Parishes with gross incomes greater than £250,000 must produce accounts on this basis.
• Parishes with incomes under this threshold may choose to prepare accounts on this basis. This is a more complex method of accounting, and new treasurers with no previous accounting background might with to consider the simpler Receipts and Payments accounts.

The Charity Commission suggest three occasions as examples of where accrual accounts would be more appropriate:

• The church is growing in complexity for example it may have a trading subsidiary or be involved in joint operations with other charities. 
• Donors to the church may make accruals accounts a condition of their grant. 
• The PCC may feel that they need to explain more about their finances than can be done with Receipts and Payments accounts for example: 
  a. The church has significant non-cash assets or material assets, which the PCC want to value and depreciate in the accounts. 
  b. The church has major non-cash donations (gifts in kind or services). 
  c. The church has a 'total return policy' in relation to endowment investments

Guidance