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Registered number: 09350923
THE INSTITUTE OF FINANCIAL ACCOUNTANTS
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
COMPANY INFORMATION
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CR Mallett (appointed 4 September 2025)
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CS502, Clerkenwell Workshops
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James Cowper Kreston Audit
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Chartered Accountants and Statutory Auditor
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
CONTENTS
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Independent auditors' report
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Statement of Profit or Loss and Other Comprehensive Income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2026
The directors present their report and the financial statements for the year ended 30 June 2026.
Directors' responsibilities statement
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The directors are responsible for preparing the directors' report and the financial statements, in accordance with applicable law.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006.
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing the financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS Accounting Standards in conformity with the requirements of the Companies Act 2006, subject to any material departures disclosed and explained in the financial statements;
∙assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in directors' reports may differ from legislation in other jurisdictions.
The principal activity of the Company during the year was the representation of financial accountants in industry, voluntary sector, commerce, public administration and private practice and contribute to policy evolution. This includes training, CPD, regulation and representing their views and those of their clients to Governmental and other appropriate bodies.
Page 1
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2026
On behalf of the board, I am pleased to present the company’s accounts for the year ending 30 June 2026.
This year we are reporting a deficit of £22,081 (before other comprehensive income) for the period under review.
While the Institute remained in a modest deficit position, the improvement reflects management’s disciplined approach to cost control and operational efficiency whilst continuing to invest in initiatives that will support long-term sustainability and growth.
The results for the year are set out in the income statement and in the related notes.
Navigating Transformation with Confidence
The accounting profession stands at a pivotal moment. For generations, accountants have been trusted custodians of financial information, providing assurance, compliance and stewardship. Those foundations remain critical, but technology, regulation, client expectations, sustainability reporting and workforce challenges are reshaping the profession at pace.
This evolution reinforces the enduring value of the profession. Technology can process information at remarkable speed, but it cannot replace the trust, critical thinking and human perspective professional accountants bring to complex decision-making. For the IFA, supporting members through this transformation remains a strategic priority.
The IPA Group Strategic Plan 2025–2030 reflects this commitment. Through Growth, Value and Leadership, the Plan recognises that future success depends on embracing innovation while maintaining the highest standards of ethics, professionalism and public trust. It also recognises that technology must enable human capability, not substitute for it.
We continue to invest in education, digital capability, member resources and thought leadership to help members navigate and prosper in a changing world. Our focus also extends outward: engaging government, regulators, educators, employers and the wider business community to shape practical policy and strengthen public confidence. Given the major reform of the UK anti-money laundering (AML) supervisory regime our on-going engagement with the FCA and OPBAS continues and the formation of the AML Working Group has strengthened our internal processes and supports our ongoing dialogue with regulators. By working beyond our membership, we help ensure the profession’s expertise contributes to broader economic and social value.
I am confident our members will continue to adapt, innovate and lead. By embracing change while remaining grounded in our professional values, we can ensure the accounting profession remains relevant, respected and indispensable. The future of our profession will not simply happen to us — together, we will write it.
Over the past several years, the Institute of Financial Accountants has undertaken a significant transformation journey to strengthen our organisation, improve the member experience and position us for long-term success.
While technology has been a powerful enabler, this has been a whole-of-organisation transformation spanning our strategy, people, education, governance and operations.
What began during the pandemic as a rapid shift in how we worked and supported members has grown into a broader program connecting member engagement, education, communications, compliance and operations. The upcoming launch of our new website and membership database and the introduction of an AI Knowledge Assistant are all part of the IFA’s future investment, giving members a more seamless, personalised experience and a stronger foundation for innovation and growth.
Our transformation is about more than systems. We continue to explore new education and professional pathways, strengthened member input through the introduction of the IFA Council (was the Members Advisory Committee) Women in Accountancy and Emerging Professionals sub-committees, improved internal processes and used data and insight to support members wherever they are. The continued success of IFA Direct, our education programme with year-on-year growth in student numbers, ensures we “continue to grow our own” and have “future ready” members. The result is greater capability, sharper efficiency and new ways to deliver value. This has been a program of sustained investment of member funds to build the future of the Institute.
Page 2
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2026
This work matters because the profession is changing fast – through evolving regulatory and sustainability-reporting demands, skills shortages, economic pressure on small business and new expectations of service and support. By transforming how we operate, we are better placed to keep members competitive, well-supported and future-ready, and to strengthen the profession and the small-business community it serves. However, this means continuing our investment in our processes, systems and people, with a view to realising the value of our investment in the next financial year.
This is not the end of the journey. As we deliver our 2030 Strategic Plan, our focus turns to optimisation and continuous improvement, investing in the people, capabilities and practical tools that will advance our organisation, our members and the profession. Together, we are building a more connected, capable and future-ready IFA. We are forging new partnerships and collaborations that will transform how the profession delivers value.
Your continued and loyal support is very much appreciated.
The loss for the year, after taxation, amounted to £22,081 (2025 - loss £196,040).
The directors who served during the year were:
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CR Mallett (appointed 4 September 2025)
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Disclosure of information to auditors
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Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Small companies' exemption note
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In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
The auditors, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 3
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE INSTITUTE OF FINANCIAL ACCOUNTANTS
We have audited the financial statement of The Institute of Financial Accountants for the year ended 30 June 2026 which comprise the Statement of profit or loss and other comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of material accounting policies set out on pages 13 - 15. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006.
In our opinion the financial statement:
∙give a true and fair view of the state of the Company's affairs as at 30 June 2026 and of its loss for the year then ended;
∙have been properly prepared in accordance with UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditors' responsibilities for the audit of the financial statement section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statement in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors assessment of the Company's ability to continue to adopt the going concern basis of accounting included:
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the report, other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 4
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE INSTITUTE OF FINANCIAL ACCOUNTANTS (CONTINUED)
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the directors' report for the financial year for which the financial statement are prepared is consistent with the financial statement; and
∙the Strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statement are not in agreement with the accounting records and returns; or
∙certain disclosures of directors remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors responsibilities statement on page 1, the directors are responsible for the preparation of the financial statement and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statement that are free from material misstatement, whether due to fraud or error.
In preparing the financial statement, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statement as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statement.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE INSTITUTE OF FINANCIAL ACCOUNTANTS (CONTINUED)
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any material instances of noncompliance with laws and regulations;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
A further description of our responsibilities for the audit of the financial statement is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Alexander Peal BSc (Hons) FCA DChA (Senior statutory auditor)
for and on behalf of
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor
Apex
Forbury Road
Reading
RG1 1AX
21 August 2026
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2026
Other comprehensive income:
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Unrealised gain on investments
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Other comprehensive income for the year, net of tax
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Total comprehensive income
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The notes on pages 13 to 22 form part of these financial statements.
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There was no other comprehensive income for 2026 (2025: £NIL).
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Page 7
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
REGISTERED NUMBER: 09350923
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2026
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Property, plant and equipment
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Trade and other receivables
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Trade and other receivables
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Cash and cash equivalents
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Current asset investments
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Trade and other liabilities
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The financial statements on pages 7 to 22 were approved and authorised for issue by the board of directors and were signed on its behalf by:
Page 8
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
REGISTERED NUMBER: 09350923
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2026
Page 9
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2026
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Total comprehensive income for the year
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Transfer to/from retained earnings
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Unrealised gain on investments
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Total contributions by and distributions to owners
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Total comprehensive income for the year
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Unrealised gain on investments
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Total contributions by and distributions to owners
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The notes on pages 13 to 22 form part of these financial statements.
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Page 10
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2026
Cash flows from operating activities
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Depreciation of property, plant and equipment
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Amortisation of intangible fixed assets
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Unrealised gain on investments
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Profit/(Loss) on sale of property, plant and equipment
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Net loss arising on financial liabilities classified as held for trading
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Net foreign exchange loss
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Movements in working capital:
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(Increase)/decrease in trade and other receivables
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(Increase)/Decrease in current asset investments
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Increase/(decrease) in trade and other payables
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Net cash from operating activities
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Cash flows from investing activities
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Purchases of property, plant and equipment
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Payments to acquire financial assets
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Net cash used in investing activities
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Cash flows from financing activities
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Payments of finance lease creditors
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Net cash used in financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at the beginning of year
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Cash and cash equivalents at the end of the year
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The notes on pages 13 to 22 form part of these financial statements.
Page 11
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
The Institute of Financial Accountants is a limited company incorporated and domiciled in the United Kingdom. The Company's registered office is given on page 1. The Institute of Financial Accountants principal activities are set out in the Directors report on page 3.
The Company is controlled by The Institute of Public Accountants which is headquartered in Melbourne, Australia. The Company is limited by guarantee without share capital.
The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations in conformity with the requirements of the Companies Act 2006 (collectively IFRSs). They were authorised for issue by the Company's board of directors on August 2026.
Details of the Company's accounting policies, including changes during the year, are included in note 3.
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgements and estimates have been made in preparing the financial statements and their effects are disclosed in note 4.
The financial statements have been prepared on the historical cost basis.
Page 12
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
3.Accounting policies
The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.
The membership subscription year commences on 1 January of each year when the annual subscription is due for the year ending 31 December. Subscriptions received during the period for future membership subscription years are carried forwards as deferred income.
Other revenue derived from the rendering of a service is recognised upon the delivery of service and the associated performance obligations are satisfied.
Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Comprehensive Income.
Corporation tax credit represents the sum of the tax refunded.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the Statement of surplus or deficit and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Page 13
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
3.Accounting policies (continued)
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Property, plant and equipment
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Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in surplus or deficit.
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:
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Intangible assets acquired separately
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Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Company's share of its identifiable assets and liabilities of the acquiree at the date of acquisition including the customer list. Subsequent to initial recognition, goodwill is tested for impairment annually, or more frequently when there is an indication of impairment. If the recoverable amount is less than its carrying amount, the impairment loss is allocated to reduce the carrying amount. Any impairment loss for goodwill is recognised directly in surplus or deficit. An impairment loss recognised for goodwill is not reversed in subsequent periods.
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Cash and cash equivalents
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Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through surplus or deficit) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through surplus or deficit are recognised immediately in surplus or deficit.
Page 14
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
3.Accounting policies (continued)
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Defined contribution schemes
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Contributions to defined contribution pension schemes are charged to the statement of comprehensive income in the year to which they relate.
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Accounting estimates and judgements
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4.1 Critical judgements in applying accounting policies
Revenue recognition
The key judgement made by management in respect of revenue is the point at which that revenue should be recognised. Management consider that revenue is to be recognised in line with the membership year, all income received in respect of the subsequent subscription year is deferred.
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4.2 Key sources of estimation uncertainty
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Useful lives of intangible assets
The Company establishes a reliable estimate of the useful life of intangible assets acquired on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired assets, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.
Useful lives of property, plant and equipment
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values.
Taxation
The Company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as experience with previous tax submissions. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.
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The following is the Company's revenue for the year from continuing operations:
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Membership subscriptions & fees
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Page 15
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
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Employee benefit expenses
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Employee benefit expenses (including directors) comprise:
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Defined contribution pension cost
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Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, including the directors of the Company listed on page 1. Aggregate emoluments (salary and employers pension) for key management personnel in the year was £81,285 (2025: £79,462).
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The average monthly number of employees, including directors, during the year was 28 (2025:26).
During the year, directors’ costs of £14,544 (2025: £7,500) were incurred and expenses of £Nil (2025: £Nil) were incurred
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Fees payable for the audit and preparation of the financial statements
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Page 16
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
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Income tax recognised in profit or loss
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There is no income tax expense recognised in profit or loss, due to the loss incurred for the current financial year. The standard rate of corporation tax in the United Kingdom is expected to apply to any future taxable surpluses.
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Changes in tax rates and factors affecting the future tax charges
There were no factors that may affect future tax charges.
Page 17
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
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Property, plant and equipment
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Accumulated depreciation and impairment
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Depreciation for the year
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Depreciation for the year
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Page 18
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
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Accumulated amortisation and impairment
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Goodwill reflects the costs of acquiring the Federation of Tax Advisers and the former Institute of Financial Accountants.
Learning materials reflect development costs for the education online learning materials and obtaining Ofqual/QCF accreditation.
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Current asset investments
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Investment in managed funds
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Page 19
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
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Trade and other receivables
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Total non-current trade and other receivables
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Prepayments and accrued income
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Total current trade and other receivables
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Trade receivables at 30 June 2026 include amounts billed in advance for membership subscriptions, practising certificates and anti-money laundering services due for renewal from 1st January each year. The Company’s exposure to credit risk is disclosed in note 14.
Other receivables include rental deposits.
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Payables to related parties
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Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
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Other payables - tax and social security payments
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Total current trade and other payables
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Page 20
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
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Provision for restorations
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Total loans and borrowings
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There was interest on finance leases of £7,566 (2025: £6,299).
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Unrealised gain on investment during the year
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This reserve records cumulative unrealised gains and losses arising on investments measured at fair value.
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The Company manages its capital to ensure that it can continue as a going concern while providing services to its members.
The Company only enters into basic financial instruments. The company has the following financial instruments; trade and other receivables (see note 13) and trade and other payables (see note 14).
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17.2 Financial risk management
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Financial risk is overseen by the non-executive directors. The Company does not enter into or trade financial instruments for speculative purposes.
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17.3 Interest rate risk management
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The Company is exposed to interest rate risk because the Company and the Group borrow funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.
Page 21
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THE INSTITUTE OF FINANCIAL ACCOUNTANTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
17.Financial instruments (continued)
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17.4 Foreign currency risk management
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The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.
The Institute actively monitors exchange rate fluctuations and should there be any material movements it would take up the appropriate financial instruments such as funds hedging to mitigate the exposure.
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17.5 Credit risk management
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The Company adopted a policy of only dealing with credit-worthy counter-parties often receiving advance payment before providing goods and services.In measuring the expected credit loss a provision is made on member receivables balance based on relevant factors including diversity of the member base and historical loss experience.
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Related party transactions
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Disclosures required in respect of IAS 24 regarding remuneration of key management personnel are covered by the disclosure of directors’ remuneration included within note 6.
The ultimate holding company incurred costs on behalf of its subsidiary of £229,431 (2025: £211,192). At the year end £14,842 (2025: £14,571) was owed. This amount is included in payables to related parties.
The directors regard all the transactions disclosed above as being in the normal course of business and the transactions were enacted at arms’ length.
The ultimate holding company is The Institute of Public Accountants which is a company limited by
guarantee, incorporated under the Australian Corporations Act 2001. The Institute of Public Accountants is
a professional membership organisation whose constitution requires each member of the institute to
contribute fixed amount of $6AUD in the event the company being wound up.
The Company’s financial statements will be consolidated in to The Institute of Public Accountants financial
statements. Copies of The Institute of Public Accountants financial statements are available from the
following website www.publicaccountants.org.au.
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Details of the Company's material subsidiaries at the end of the reporting period are as follows:
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1) Institute of Financial Accountants in China Limited
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2) Federation of Tax Advisors Limited
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3) IFA Institute of Public Accountants Limited
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As permitted under s398 of the Companies Act 2006 the directors have elected not to produce group
accounts.
Page 22
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