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Academies Accounts Direction 2026: key updates and implications

The Academies Accounts Direction 2025 to 2026, published by the Department for Education (DfE), provides essential guidance for academy trusts, their auditors and reporting accountants in preparing and auditing financial statements for the year ending 31 August 2026. The Direction ensures financial reporting remains transparent, consistent and aligned with statutory requirements.

Purpose of the Accounts Direction


The Accounts Direction outlines the framework for:

  • Preparing annual financial statements
  • Conducting statutory audits and regularity reviews
  • Ensuring compliance with the Companies Act 2006 and the Academy Trust Handbook

It remains a contractual requirement under an academy trust’s funding agreement and must be followed alongside the Model Set of Accounts and the Framework and Guide for External Auditors.


Key changes in the 2026 edition


The 2026 edition introduces a number of targeted updates aimed at improving clarity and consistency:

  • Governance and narrative reporting
  • Changes to the model set of accounts
  • Auditor and reporting accountant guidance
  • Staff costs and remuneration

  • Compliance and next steps

To read more on the key changes and the next steps for your school, please click below. 

     

If you wish to discuss this further, please contact one of our Education team members here at James Cowper Kreston.

 

If you would like to arrange a virtual meeting to discuss your specific circumstances in relation to any of the above, please get in touch with your usual contact within James Cowper Kreston or contact me using the details below.


Sam West

Manager

T: +44 (0)7823 353589

E: SWest@jamescowper.co.uk
     

The information in this newsletter must not be relied on as giving sufficient advice in any specific case.   

   
   

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