The Department for Education’s (DfE) Academies Accounts Direction (AAD) 2025–26 sets out the reporting and disclosure requirements that academy trusts must follow when preparing their annual report and financial statements for periods ending 31 August 2026.
While many of the updates build on existing requirements, several changes introduce more detailed expectations around disclosure and reporting, which may have a practical impact on how trusts prepare their statutory accounts and supporting narrative information.
This summary highlights the key changes and provides practical insight into what they mean for academy trusts in practice.
Overview of the 2025–26 Academies Accounts Direction
The AAD is a key reference point for finance teams, accounting officers and trustees, setting the framework for how academy trusts must report their financial performance and position.
The 2025–26 edition introduces a number of refinements rather than wholesale change, but several updates are likely to require closer attention during the year-end process.
These updates are particularly relevant in the context of increasing scrutiny around governance, transparency and value for money across the sector.
Key changes in the 2025–26 AAD
Staff restructuring and redundancy disclosures
One of the most notable updates relates to reporting requirements for staff restructuring costs.
Trusts are expected to provide clearer and more detailed disclosure around redundancy and restructuring activity, including how costs are identified, approved and accounted for within the financial statements.
This increased transparency is intended to give greater visibility over workforce-related expenditure, which remains one of the most significant cost areas for academy trusts.
Enhanced disclosure requirements
The AAD 2025–26 also introduces updates to disclosure expectations across a number of areas within the financial statements.
These changes reinforce the importance of providing clear, consistent and well-supported narrative reporting that aligns with underlying financial data.
Trusts may need to review their existing reporting templates and processes to ensure disclosures are sufficiently detailed and supported by appropriate evidence.
Preparing for Charities SORP 2026
Another important development is the early guidance provided in relation to the forthcoming Charities SORP 2026.
Although not yet in force, the AAD includes preparatory commentary to help academy trusts understand the direction of travel and begin considering the potential impact on future reporting periods.
Early awareness of these changes will be important for finance teams as they plan ahead for future accounting updates and evolving reporting expectations.
What this means for academy trusts
While the changes in the 2025–26 AAD may appear incremental, they reflect a continued trend towards greater transparency and consistency in academy trust reporting.
In practice, trusts should expect:
- increased scrutiny of staff restructuring and redundancy costs
- more detailed narrative disclosures in annual reports
- greater emphasis on consistency between financial and non-financial reporting
- the need to plan ahead for upcoming SORP changes
Finance teams and trustees should also ensure that reporting processes are well documented and that supporting evidence is readily available ahead of audit.
Preparing early for year-end reporting
Early preparation will be key to managing the impact of these updates effectively.
Trusts may wish to:
- review existing accounting policies and disclosure templates
- ensure restructuring costs are appropriately tracked throughout the year
- strengthen internal processes for gathering narrative reporting information
- engage auditors early on areas of judgement or complexity
Taking a proactive approach can help reduce year-end pressure and improve the quality and consistency of reporting.
Supporting academy trusts through change
The Academies Accounts Direction continues to evolve in line with wider regulatory expectations for the sector. While the 2025–26 updates are not transformational, they do reinforce the importance of robust processes, clear documentation and strong governance oversight.
Finance teams that engage early with these changes will be better placed to produce accurate, compliant and well-structured annual reports.
Download the full summary
For a more detailed breakdown of the changes and expert commentary, you can download our full Academies Accounts Direction 2025–26 summary and analysis.