Thumbs up for SORP review

Thumbs up for SORP review

The Charity Commission's Statement Of Recommended Practice has worked sufficiently well since implementation and does not require major revision, sector experts said this week

As the deadline for the SORP consultation exercise passed on Monday, Adrian Randall, head of the charities group at Moores Rowland, said he agreed with the commission’s stance that a fundamental review was not necessary.

‘What is necessary is that some areas of the SORP need clarification and others need to be more specific to remove anomalies,’ said Randall.

The SORP provides non-statutory guidelines for charity accounting and is part of a framework approved by the Accounting Standards Board. The review was launched as a consultation exercise in September and is designed to update the original 1995 recommendations.

Among the responses, many charity finance directors argued that recommendations on trading subsidiaries, and the details of the charities’ statement of financial activity, both need clarification.

ACCA also urged the commission to provide more guidance on accruing for legacies income, fundraising disclosures and publicity spending.

Richard Martin, secretary of the ACCA charity panel, said that despite some misgivings, the SORP had enhanced the comparability and the usefulness of charities’ accounts.

‘But there is scope for clarification, improvements and harmonisation with accounting standards, and we support the proposals for setting in motion a review and revision of the SORP at this time.’

The commission is establishing a committee under the chairmanship of charity commissioner John Bonds to examine the responses. A further public consultation exercise on proposed amendments will follow next year.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource