In the last issue of our Charity newsletter, we reported on the recommendations of the SORP governance review panel which was set up to review the future development of charity reporting and accounting. You can read the full article here.
Following the governance review, the Charities SORP-making body has taken swift action and announced a major overhaul of the way accounting rules are set so that they better meet the needs of users of charity reports and accounts. A new process for developing the SORP is intended to be in place from 2020.
Reforms to the SORP committee
There will be reforms to the SORP committee, which are designed to ensure a stronger culture of constructive challenge, better stability, and better representation of small charities and funders with an interest in the impact charities have.
New stakeholder groups to help establish charity accounting rules
There will be a new engagement process, with seven stakeholder groups working in partnership with the SORP committee. Each group will involve individuals and organisations with an interest in charity financial reporting, giving charities and trustees the opportunity to be involved. The views of the stakeholder groups will shape the future form and content of the next SORP.
Updated version of Charities SORP published
An updated version of the accounting and reporting rules for charities was published in November in order to consolidate changes that have been released in separate documents over recent years.
This is the second edition of Charities SORP (FRS 102) and brings together the two update bulletins and the original SORP text so charities no longer have to refer to more than one document when compiling their annual reports and accounts.
The effective date for using the reissued document is financial years starting 1 January 2019.
To download a full SORP, please click on the following link here.
No new SORP until 2022/23
Civil Society News reported last month that minutes from the July meeting of the SORP Committee have revealed there will be no new SORP until 2022/23 following the publication of the current SORP in November.
If you require any further clarification surrounding the changes to Charities SORP, please contact our Charities team.