Issuer, scope and exclusions
Issued on 24 June 2011 after ASC’s CAS release, the statement covers registered/approved charities and Institutions of a Public Character under the Charities Act. It excludes statutory-body charities in the Accounting Standards Act Schedule, which follow Accountant-General standards under Part IV, and Third Schedule educational institutions under the 2011 Accounts/Annual Report regulations, directed by MOE on 24 June 2011 to use FRS. This is the original implementation statement, not a current consolidated classification list.
Two implementation phases
For periods beginning from 1 July 2011, charity/IPCs incorporated under the Companies Act and non-company large IPCs defined by Rule 20(6) must adopt the applicable FRS or CAS framework. From 1 January 2015, other charities whose statements must be audited under the 2011 regulations do likewise. These dates concern beginning of financial periods. Early adoption is allowed/encouraged, but the specified groups cannot postpone beyond their phase.
When only FRS is available
A charity with significant investments in a subsidiary, associate or joint venture that is not a charity must use FRS, not CAS. Other covered charities may choose according to size, structure, transaction number/nature and operational needs. CAS is a simpler fit-for-purpose framework derived from FRS with charity-specific guidance on monument-preservation assets, endowments and restricted-income funds. The document does not quantify significant investment.
Whole-framework adoption and Small Entities
Adopt either framework in full: mixing selected FRS and CAS accounting policies is prohibited. Charities cannot adopt SFRS for Small Entities because they are publicly accountable. The CAS option is therefore not the same as small-entity reporting and does not permit omissions just because a charity is small.
FRS additional disclosures and presentation option
FRS adopters also make regulatory disclosures of loans to any parties specified in CAS paragraph 280 under the 2011 regulations. They may elect CAS’s statement-of-financial-activities presentation for comprehensive income. This permitted format choice does not authorise mixing recognition/measurement policies. The statement references rather than reproduces paragraph 280’s full loan-disclosure list.
Switching and first-time transition
Changing CAS to FRS or vice versa is possible but strongly discouraged absent compelling reason, to preserve comparability. CAS contains first-time-adopter transition provisions for a switch from FRS. The FAQ does not set out their detailed measurement adjustments, so a switch requires the standard, not only this general permission.
Historical RAP 6 availability
Because implementation was phased, RAP 6 was not immediately withdrawn. Charities outside the first phase could use it until periods beginning from 1 January 2015 unless they adopted FRS/CAS early. First-phase charities could not use it for periods beginning from 1 July 2011. This was a transition arrangement; the FAQ is not continuing permission to use RAP 6 indefinitely.
Responsibility and enforcement
Governing board members are responsible under Rule 4 for compliant statements. COC monitors/enforces; non-compliance is an offence under the Charities Act and attracts a regulatory fine, although this PDF gives no amount. Its fourteen FAQs are guidance, not part of either standard. The standards and applicable regulations remain necessary for full requirements.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗