Charity Financial Reporting Regulation: A Comparative Study of the UK and New Zealand

Accounting History, Vol. 12, No. 1, pp. 7-27, January 2007

22 Pages Posted: 6 Aug 2008 Last revised: 15 Aug 2008

See all articles by Carolyn J. Cordery

Carolyn J. Cordery

Aston University; Victoria University of Wellington - School of Accounting and Commercial Law

Rachel F. Baskerville

Victoria University of Wellington - School of Accounting and Commercial Law

Date Written: 2007

Abstract

Charities are becoming more highly regulated worldwide and yet they are subject to diverse, country-specific, financial reporting standards. New Zealand is a jurisdiction that has treated all sectors alike in its approach to the financial regulation of charities, while the UK has, for some time, separated the regulation of charities from other entities. This article provides a comparison of the histories of the evolution of regulation for charity reporting in the UK and New Zealand. The current process of international harmonization in both jurisdictions is premised on the principle that accounting conceptual frameworks should not be jurisdiction-specific, but charities have proved to be an exception. We suggest in this study that this exception is attributed to different drivers resulting in regulatory distinctions in two otherwise similar jurisdictions. Without persisting in the maintenance of sector-neutrality, the inevitable divergence increases the load on preparers, attesters, and users and may lead to lower levels of accountability and transparency.

Keywords: Charity regulation, financial reporting, New Zealand, Charity Commission

JEL Classification: L30, M40

Suggested Citation

Cordery, Carolyn J. and Baskerville, Rachel F., Charity Financial Reporting Regulation: A Comparative Study of the UK and New Zealand (2007). Accounting History, Vol. 12, No. 1, pp. 7-27, January 2007. Available at SSRN: https://ssrn.com/abstract=1204714

Carolyn J. Cordery

Aston University ( email )

Aston Business School
Aston Triangle
Birmingham, B4 7ET
United Kingdom

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand

Rachel F. Baskerville (Contact Author)

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand
006444636951 (Phone)
006444635076 (Fax)

HOME PAGE: http://www.victoria.ac.nz/sacl/staff/rachel-baskerville.aspx

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