RESEARCH ARTICLE
Allocating charities' financial reporting requirements using tiers – Australian perspectives
Han Wen,
David Gilchrist,
Prerana Agrawal,
Lyndie Bayne,
Han Wen
UWA Business School, University of Western Australia, Perth, Western Australia, Australia
Search for more papers by this authorCorresponding Author
David Gilchrist
UWA Business School, University of Western Australia, Perth, Western Australia, Australia
Correspondence
David Gilchrist, Centre for Public Value, UWA Business School, University of Western Australia, Perth, WA, Australia.
Email: [email protected]
Search for more papers by this authorPrerana Agrawal
UWA Business School, University of Western Australia, Perth, Western Australia, Australia
Search for more papers by this authorLyndie Bayne
UWA Business School, University of Western Australia, Perth, Western Australia, Australia
Search for more papers by this authorHan Wen,
David Gilchrist,
Prerana Agrawal,
Lyndie Bayne,
Han Wen
UWA Business School, University of Western Australia, Perth, Western Australia, Australia
Search for more papers by this authorCorresponding Author
David Gilchrist
UWA Business School, University of Western Australia, Perth, Western Australia, Australia
Correspondence
David Gilchrist, Centre for Public Value, UWA Business School, University of Western Australia, Perth, WA, Australia.
Email: [email protected]
Search for more papers by this authorPrerana Agrawal
UWA Business School, University of Western Australia, Perth, Western Australia, Australia
Search for more papers by this authorLyndie Bayne
UWA Business School, University of Western Australia, Perth, Western Australia, Australia
Search for more papers by this authorFirst published: 09 January 2025
Abstract
The Australian accounting standard setter, funders and the sector itself express concern about reporting obligations established via regulatory requirements that are arbitrarily allocated using a tiered system based on income levels. This study investigates the utility of the current financial reporting framework by interviewing experienced preparers. Findings reveal stakeholders demand more detailed information, current accounting standards are seen as unsuitable, and irrelevant disclosures reduce report relevance. The tiered reporting system is viewed as outdated, especially for small and medium-sized charities. We contribute to the literature on not-for-profit accounting by highlighting current system limitations and suggesting improvements for alignment with stakeholder needs.
Open Research
DATA AVAILABILITY STATEMENT
The data that support the findings of this study are not available. In accordance with the ethics approval conditions, participant anonymity was assured, with exceptions only as mandated by legal requirements.
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