New charity SORP: have your say

Changes in UK GAAP come into effect for financial periods beginning on or after 1 January 2015 and these changes in accounting standards require a new charity SORP.

The new Exposure Draft Charities Statement of Recommended Practice (SORP): Accounting and Reporting by Charities is written in a modular format, it can be accessed via their dedicated microsite.

The new SORP supports reporting under the FRSSE or new GAAP standard FRS 102 and this choice is explained in the new SORP. Changes from 2005 SORP include:

• a new look Statement of Financial Activities with investment gains and losses included in the net income/ expenditure figure;
• an explanation of the approach taken to risk management will be required of larger charities in their trustees’ annual report; and
• changes to accounting policies. 

The Exposure Draft also provides guidance on the complex topic of financial instruments.

The Charity Commission for England and Wales and the Office of the Scottish Charity Regulator (OSCR) are seeking your view on the draft SORP with 25 questions posed in the ‘invitation to comment’. You can comment on some or all of the questions and also on any other aspect of the SORP or the new microsite.

To help understand the new draft SORP changes, the September issue of AB.UK magazine will include a CPD article focusing on the changes and details of a vodcast that will look at the key areas.