Climbdown by SORP critics
Charity accounting experts have shied away from urging the Charity Commission to carry out a radical overhaul of the guidance governing production of charity accounts.
More than 230 respondents commented on the commission’s review of the Statement of Recommended Practice. But only 12 disapproved of existing practices.
Pesh Framjee, head of the charity unit at Binder Hamlyn Arthur Andersen, said his comments asked for clarification rather than a radical change to the existing SORP.
‘The SORP has been around for some time now, but there are some inconsistencies which have allowed people to do different things,’ said Framjee.
The review is also intended to bring the SORP into line with new financial reporting standards. ‘We must make sure that our deliberations properly reflect the way in which accounting standards are moving,’ Framjee added.
Stephen Bowles, charity partner at Fraser Russell, suggested that the need for radical change depended on how much comment the commission had from users rather than those participating in the review.
The SORP committee is due to meet shortly to discuss the responses. An exposure draft of the proposed changes will be published later this year.