With increasing numbers of US students completing or supplementing their higher education in the UK, there are implications for how universities report their annual accounts.
All UK universities are obliged to publish an annual report and statement of accounts, as stipulated by Generally Accepted Accounting Practice in the UK (UK GAAP). However, universities that offer places to US students may in some cases have to prepare accounts under the US GAAP (General Accepted Accounting Principles) for the U.S. Department of Education.
This only becomes mandatory if a university’s intake of US students has borrowed an aggregate of £3 million from the American government to fund its overseas study. Until recently, this only applied to a handful of universities in the UK, but due to an influx of US students, more find themselves in a position of needing to submit two sets of accounts.
Supporting universities with US GAAP
At Scrutton Bland, we have experience of working with UK universities and US GAAP, allowing us to compile accounts for universities with a large quota of American students. Our team also stays up to date with all changes to US GAAP regulations, which can impact universities’ annual reporting requirements.
By letting Scrutton Bland complete this process on their behalf, university finance departments can save time and money that would otherwise be spent getting up to speed with the complexities of US GAAP.
Our specialist university team makes us unique among other advisory firms, both on a regional and national level. With our knowledge of higher education and the intricacies of accounting in the sector, including US GAAP, we are well positioned to assist universities that have a large cohort of US students, or may do in the near future.