Accruals Accounts

This section provides guidance for those PCCs who are producing accounts on the Accruals method of accounting.

  • Parishes with gross incomes greater than £250,000 must produce accounts on this basis.
  • Parishes with incomes under this threshold may choose to prepare accounts on this basis. This is a more complex method of accounting, and new treasurers with no previous accounting background might wish to consider the simpler Receipts and Payments accounts.

The Charity Commission suggest three occasions as examples of where accrual accounts would be more appropriate:

  • The church is growing in complexity for example it may have a trading subsidiary or be involved in joint operations with other charities.
  • Donors to the church may make accruals accounts a condition of their grant.
  • The PCC may feel that they need to explain more about their finances than can be done with Receipts and Payments accounts for example:
    a. The church has significant non-cash assets or material assets, which the PCC want to value and depreciate in the accounts.
    b. The church has major non-cash donations (gifts in kind or services).
    c. The church has a ‘total return policy’ in relation to endowment investments


There is detailed guidance available on producing Accruals Accounts from the 5th edition of the PCC Accountability book. This is available both as a printed book and as an online version.  This guidance will help you produce three of the four reports you will need for your annual Report and Accounts – The Trustees Annual Report, the Receipts and Payments Account, and the Statement of Assets and Liabilities.

The fourth report you will need is the Independent Examiner’s Report if you are below the audit threshold. Separate guidance is produced on developing this. (Click here)  If you are above this threshold, your auditor will supply an Auditors Report for inclusion.