The Charity Commission has launched a consultation about changes to statements of recommended practice (SORP) as a result of changes made to UK accounting standards.
The changes to UK-Irish accounting practice made by the Financial Reporting Council (FRC) are due to take effect from 2016, which means that the charities SORPs will need to be updated.
The SORPs have to be updated to comply with the expected changes to accounting standards by the FRC. The FRC requires that a SORP must be prepared in accordance with the FRC's Policy and Code of Practice on SORPs; and include no fundamental points of principle that are unacceptable in the context of current practice or to conflict with an accounting standard.
The expected changes to GAAP mean that the charities SORP will not apply for reporting periods (financial years) beginning on or after 1 January 2016; and changes are needed to the Charities SORP (FRS 102) effective for reporting periods (financial years) beginning on or after 1 January 2016.
The Charity Commission and the Office of the Scottish Charity Regulator are now seeking charities' views on proposals being made for updating the charities SORP (FRS 102). The consultation documents and draft schedule of changes, called an Update Bulletin, can be viewed via the dedicated SORP micro-site: www.charitysorp.org.
The joint SORP-making body and charities...