Regulators consult on changes to Sorp for charities

A joint consultation by the Charity Commission and the Office of the Scottish Charity Regulator will run for six weeks, until 4 April, and proposes 21 changes

Accounting: changes to the Sorp proposed
Accounting: changes to the Sorp proposed

The Charity Commission and the Office of the Scottish Charity Regulator have launched a joint consultation on a raft of proposed changes to the Statement of Recommended Practice for charities.

The consultation, which will run for six weeks until 4 April, proposes 21 changes to the Sorp after alterations were made at the end of 2017 to the financial reporting standard in the UK.

The changes to the Sorp include the introduction of a "requirement for a net debt reconciliation to be prepared as a note to the statement of cash flows" and "an accounting policy choice for entities that rent investment property to another group entity".

The changes will also clarify how payments by subsidiaries to their parent charities should be treated under Gift Aid law.

The consultation will seek opinions on the 21 proposed changes and ask if any other alterations to the Sorp are necessary.

The changes to the Sorp will come into effect on 1 January 2019.

Nigel Davies, head of accountancy services at the Charity Commission and joint chair of the Sorp Committee, said: "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, so it’s important that any changes made to an accounting standard are reflected accurately and clearly in the Sorp."

Laura Anderson, head of professional advice and intelligence at the OSCR and joint chair of the Sorp Committee, said: "This is an important opportunity to help ensure that the charities Sorp continues to provide helpful guidance on charity accounting and reporting. We encourage those who 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."

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in
RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners