All charities – except those registered with Office of the Registrar of Indigenous Corporations (ORIC) – must submit an Annual Information Statement each year.

As part of this obligation, many charities must also submit an annual financial report.

An annual financial report provides the public with extra information and an additional level of assurance about a charity's operations and financial affairs throughout a reporting period.

Medium and large charities, except for those that are Basic Religious Charities, must submit an annual financial report as part of their Annual Information Statement.

For small charities, submitting an annual financial report is optional. However the ACNC encourages them to do so, and if a small charity's own governing document requires it to submit a financial report, it must do so.

This guidance provides details about annual financial reports, and includes a checklist that covers key issues to consider when preparing your charity’s annual financial report.

Providing an annual financial report

Providing an annual financial report helps registered charities meet their legislative requirements as set out in the ACNC Act, and is also an indication of good governance.

Generally, annual financial reports must be prepared as required by the ACNC Act and ACNC Regulations, and must meet ACNC requirements.

They must also comply with the Australian Accounting Standards set by the Australian Accounting Standards Board (AASB) and give a true and fair view of the financial position and performance of the charity.

Large charities must have their annual financial report audited. Medium charities can have their annual financial report either audited or reviewed.

As a minimum, medium and large charities must provide the ACNC with the following information when submitting their annual financial report:

a statement of profit or loss and other comprehensive income

a statement of financial position

a statement of changes in equity

a statement of cash flows

notes to the financial statements

a signed and dated Responsible People’s declaration about the statements and notes (the ACNC has a template declaration available)

for medium charities, a signed and dated reviewer's report or auditor's report; for large charities, a signed and dated auditor's report (the ACNC has templates for reviewer's and auditor's reports).

1 Under certain circumstances, the ‘other comprehensive income component’ and ‘statement of changes in equity’ can be optional. For more information, refer to the first item in the annual financial report checklist on this page.

A charity's financial statements must be either General Purpose Financial Statements (GPFS) or Special Purpose Financial Statements (SPFS).

The type of financial statements a charity must prepare depends on whether it is classed as a reporting entity. For more information, read the ACNC’s guidance on General and Special Purpose Financial Statements.