The Statement of Recommended Practice 'Accounting and reporting by charities' is available from today from the Charity Commission.
The SORP explains to all charities, including charitable companies how to prepare their annual report and annual accounts.
It has been drawn up following extensive consultation with compilers, auditors and users of charity accounts, and updates and develops the previous SORP produced five years ago.
Charity commissioner David Taylor, said: ‘The new SORP is evolutionary, not revolutionary. It builds on existing good practice and develops this further for the new challenges of the 21st Century.’
Relatively few changes have been made to the accounting requirements, and the majority of charities will find the key changes relate to the information they include in their annual reports, according to the commission.
Larger charities with more complex accounting requirements, however, will find clearer guidance on accounting for separate funds, incoming and outgoing resources and the rules for the treatment of specialised transactions.
SORP 2000 applys to all accounting periods starting on or after 1 January 2001. Any charity can start using SORP 2000 before that date.
Details of the SORP can be found on the Charity Commission website