The Charity Commission for England and Wales and the Office of the Scottish Charity Regulator, who together are the SORP-making body, are inviting comments on amendments to the Charities Statement of Recommended Practice (SORP) following changes in UK-Irish accounting standards.
The consultation launched today will run for 6 weeks and focuses on 21 proposed amendments to the SORP which are considered necessary as a result of the changes made in December 2017 to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. These changes are to be made via a second Update Bulletin and include:
The consultation is inviting comments on the draft Update Bulletin with 2 questions:
One of the principal roles of the SORP is to provide charity specific guidance on applying UK-Irish accounting standards when preparing a charity’s accounts, and so it’s important that any changes made to an accounting standard are reflected accurately and clearly in the SORP.
This is an important opportunity to help ensure that the Charities SORP continues to provide helpful guidance on charity accounting and reporting and we encourage those that prepare charity accounts to share their views on how the changes to the reporting standard are being applied to the SORP for charities. We would also like to hear views from users of charity accounts on the changes made and the impact on how useful charity reports and accounts are.
The consultation will close on Wednesday 4 April 2018. For more information, including the draft SORP Update Bulletin, and detail on how to respond refer to the dedicated SORP site. Details of consultation events are also available on the site. The changes will come into effect for accounting periods beginning on or after 1 January 2019.
The consultation is not seeking views on the amendments to the underlying accounting standard as this is led by the Financial Reporting Council and the amendments have been finalised.