The Charity Commission and the Office of the Scottish Charity Regulator have launched a consultation on a new draft Statement of Recommended Practice (SORP).
The SORP provides a comprehensive framework for charity accounting and reporting that enables charities to adopt a consistent interpretation of financial reporting standards and to account for those transactions that arise when undertaking charitable activities. All charities that prepare their accounts on an accruals basis to give a ‘true and fair’ basis must follow the SORP.
In March 2013 the Financial Reporting Council issued a new Financial Reporting Standard (FRS102) which will form the basis of financial reporting for accounting periods starting on or after 1 January 2015.
Amongst the proposed changes are:
- a new module on social investments;
- a reduced number of headings required in the Statement of Financial Activities; and
- material grants made to institutes to be listed in notes, rather than made available in a separate publication.
The consultation will close on 4 November.
More details about the consultation can be found on the ORP micro-site.
For more information please contact John Devine on 0191 211 7929.