Key changes: Academies Accounts Direction 2016

The majority of changes in this year’s Accounts Direction come about due to the introduction of new accounting standards, specifically FRS 102 and the Charities SORP 2015. These are mainly in relation to disclosures and have very little impact on the main figures themselves. The key differences this year are as follows:

  • Changes have been made throughout the narrative sections to the accounts to take account of the recent changes in accounting standards.
  • Governance are no longer shown separately on the face of the SOFA.
  • Further disclosure is required for comparative information in the SOFA, so it has the same level of detail as the current year
  • If computer software licenses are material, they should now be held should be capitalised as ‘intangible fixed assets’.
  • The cash flow statement has been renamed as the statement of cash flows and now has a more simplified structure, with only three headings.
  • The total remuneration and benefits paid to key management personnel must now be disclosed in the staff costs note.
  • The disclosure of commitments under operating leases must now show the expected future minimum lease payments over the remaining life of the lease (previously the disclosure was for the annual commitment).
  • New wording has been provided for disclosure where academies use the RPA:

    The academy trust has opted into the Department for Education’s risk protection arrangement (RPA), an alternative to insurance where UK government funds cover losses that arise. This scheme protects trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy business, and provides cover up to £10,000,000. It is not possible to quantify the trustees and officers indemnity element from the overall cost of the RPA scheme.

  • The breakdown of direct and support costs in the charitable activities note has been reduced.

For any help and advice on the changes in the Accounts Direction, or any other query, please contact Misty on 01404 41977 or

For a full copy of the Accounts Direction, please see here