There are some accounting points you need to consider when you reregister under the Incorporated Societies Act 2022.
While we are not accountants, let’s look at some key questions and outline some points here. You may also want to review more details at the links below.
Issue 1: XRB reporting
You will need to comply with the External Reporting Board (XRB) reporting standards after reregistering. If you are a registered charity, there shouldn’t be much change, but there are 24,000 incorporated societies and only about 9,000 are registered charities, meaning there will be implications for many societies. Get ready now as you’ll need to comply from when you reregister.
Issue 2: Tiers
Which of the ‘tiers’ will you be in? The reporting requirements will alter depending which you are. In summary, the tiers are:
Tier 1: Total expenses of $33 million or more
Tier 2: Total expenses over $5 million
Tier 3: Total expenses above $140,000
Tier 4: Total operating payments below $140,000
Knowing which tier you are in will help you know how you will need to comply.
Issue 3: Small incorporated societies
These entities have operating payments below $50,000 in last two years and assets below that. If this is the case and they are not a registered charity, there are very minimum standards of reporting to comply with.
Issue 4: Statements of Service Performance
You might need to prepare this – a chance to tell your story well – so check if you will need to change how you report to comply. These are the storytelling aspects of what you do – the lives impacted.
If you have any questions, please feel free to reach out to us, or speak with your accountant. Also be sure to look at the other information available on our Incorporated Societies Information Hub and request a copy of our free guide on reregistering.
If you’d like to know more specifics on the points raised in this article, we suggest taking a look at these links for more on these topics:
