Finance News: Accountants brand Sorp as 'tricky' for small organisations

The new annual return for charities, the draft Sorp, is too prescriptive and will be difficult for small charities to comply with, according to the Institute of Chartered Accountants in England and Wales.

Responding to the Charity Commission's consultation on the draft Sorp, the institute says that it is very concerned about the level of detail and compulsion in the document. The submission questions whether the new Sorp will lead to an improvement in the quality of charity accounts.

"The use of the words 'must' and 'should' in much of the text reinforces the impression of detailed and inflexible prescription," the institute argues.

"We note that the Charity Commission has recently expressed concern about the level of non-compliance with the current Sorp, and we are not convinced that the proposed successor statement will enable or encourage more charities to comply."

The Institute also suggests that the draft Sorp has been written with larger charities in mind.

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