Our education teams are based around the UK and work with Higher Education Institutions (HEI’s), Further Education Institutions (FEI’s) as well as Academies and Schools. Currently we are external and internal auditors to over 60 HEI’s and FEI’s as well as numerous other Institutions. Our Education Steering Group comprises a number of Partners and Directors around the firm who set our strategy as we continue our growth in the sector.
The future of financial reporting for the Education sector is set to change in the not too distant future. The transition to full IFRS (‘Tier 1’) or the new UK financial reporting proposals contained in ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ FRSME/ FRSPBE (‘Tier 2’) is potentially the largest accounting change that many Institutions will have had to face in recent times.
It is therefore important to look internally and consider how your Institute will meet the challenges of IFRS or the new UK financial reporting proposals FRSME. Perhaps, initially, you will be thinking about (1) which accounting frameworktier you wish to apply (2) the resources that you have available to you (3) the impact of the transition including additional disclosure requirements and (4) how you are to manage the conversation process.
From our analysis, we believe that the impact of adopting full IFRS or the new UK financial reporting proposals FRSME could be significant to the education sector with the main areas impacted including endowments, leases, capital grants and financial instruments, to name but a few.
Leveraging from our experience on conversation projects in the private and public sectors, we believe that leadership, communication and structured project planning are key to a successful transition.