SORP Update

Provisional plans to launch a new statement of recommended practice (SORP) by 2019 have been scrapped. The SORP which is the governing document for charity accounting is set by a committee co-chaired by Nigel Davies, head of accountancy services at the Charity Commission. 

A new SORP was expected to apply to financial years beginning on 1 January 2019 but Mr Davies has recently announced that this is 'unlikely'. Instead, there is an intention to issue an update bulletin, reflecting changes arising from the triennial review of UK GAAP.

A consultation on the update is planned for Spring 2018 with the intention to produce a new version of the current SORP consolidating changes into one document so there is only one document to follow for periods beginning on 1 January 2019. Substantial changes are likely to be applied in a full new SORP which has been tentatively scheduled for 2022.

Meanwhile, working groups have been set up by the charities SORP committee to consider three possible up and coming changes to charity reports and accounts. The first of these changes will look at possibly introducing simpler reporting for smaller charities, the second will scrutinise changes to reporting of governance with the intended aim of ending 'boilerplate' statements and the third group will investigate whether a 'key facts summary' should be presented in the accounts.

In terms of the current SORP, an information sheet on implementation issues has been released and can be accessed by clicking here.

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