With the experience of preparing the trustees’ annual reports and accounts for 2015 under the new Charities Statement of Recommended Practice fresh in practitioners’ minds, the Charity Commission for England and Wales and the Office of the Scottish Charity Regulator, who together are the SORP-making body, are seeking your views on how the SORP can be further improved. This is your opportunity to influence the future direction of charity reporting and accounting.
The SORP research exercise launched today focuses on the Charities SORP (FRS 102). This is because the Charities SORP (FRSSE) does not apply for reporting periods (financial years) beginning on or after 1 January 2016. The consultation closes for comment on 11 December 2016. The extended consultation period is intended to allow users of charity reports and accounts and users of the SORP every opportunity to take part and share their views.
Your views are sought on:
• the SORP’s structure, format and accessibility
• implementation issues that require improvements to the SORP
• SORP Committee members’ suggestions for changes to the SORP
• charity regulator themes for making changes to the SORP
• your ideas for items to remove, change or add to improve the SORP
The consultation document can be viewed via the dedicated SORP micro-site. It is anticipated that the Financial Reporting Council (FRC) will review the FRS 102 standard next year. The revised FRS 102 is anticipated to take effect from 2019. Any changes to the FRS 102 standard will in turn require a new SORP. The SORP research will therefore inform the development of the next Exposure Draft of the SORP. The Exposure Draft of the next SORP is likely to be consulted upon in 2018.
Nigel Davies, Head of Accountancy Services at the Charity Commission and Joint Chair of the SORP Committee, said:
We hope that sector practitioners and users of the charity reports and accounts will take the opportunity to tells us about what needs improving and share with us their ideas or solutions. The FRC is committed to a more frequent cycle of reviewing the standards that make up UK-Irish Generally Accepted Accounting Practice and now is a timely moment to feed in your ideas for change.
Laura Anderson, Head of Enforcement at OSCR and Joint Chair of the SORP Committee said:
When we published the new SORPs in 2014 we sought to develop a reporting and accounting framework that serves four charity law jurisdictions, each with its own reporting traditions and needs. We look forward to gathering views across the UK and Ireland on how the SORP can serve the charity sector well for the future. Please take part in this shared endeavour to make the SORP the best it can be.
The SORP-making body anticipates that the results of the SORP research exercise will be published by mid 2017 on the dedicated micro-site.