FINANCE NEWS: NSPCC forsakes the SORP guidelines in its yearly accounts

NSPCC has decided to ignore part of the Accounting Standards Board's statement of recommended practice (SORP) in its annual report and accounts.

The charity's accounts for the year to end of March 2003 do not differentiate between cost of governance of the charity and support costs such as premises and HR.

Finance director John Graham said: "In our case governance accounts for only 3 per cent of the cost, which we do not believe to be material. Therefore, we have presented a consolidated figure."

The accounts also show income from events as gross instead of net. According to Graham, a pilot exercise indicated that including gross income on events increased total income and expenditure by less than 1 per cent.

He added: "I think this demonstrates that while the SORP is a sound guideline, trustees need to adopt the presentation that in their opinion best reflects the charity."

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