Election of Tier 3 or 4

The accounting standards require a reporting entity (parish, synod, trust, etc) to elect which Tier of financial reporting they have chosen.  The standards provide:XRB A1 clauses 129 and 130

XRB A1 clauses 129 and 130

I would suggest that each parish, synod, trust,etc passes a resolution confirming the election and the reasons why at a Parish Council meeting and record this in the minutes.  Here are two examples, one for Tier 3 and one for Tier 4:

Tier 3

The Parish Council resolved:

That the ABC Methodist Parish has designated itself as a Tier 3 public benefit entity and will apply PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting – Accrual (Not-For-Profit) on the basis that it does not have public accountability and has total annual expenses are to equal to or less than $2,000,000 for the 12 months ended 30 June 2015 and for the last two financial years.

Tier 4

The Parish Council resolved:

That the ABC Methodist Parish has designated itself as a Tier 4 public benefit entity because it does not have public accountability and it is permitted by law to apply this standard because its operating payments are less than $125,000 for the 12 months ended 30 June 2015 and for the last two year financial years.