The Charities SORP-making body has set out plans to change the way that the charity accounting framework, the Statement of Recommended Practice (SORP)*, is developed so that it better meets the needs of users of charity reports and accounts.
This follows a nine-month government review of the process, which recommended that it must change in order to meet “new public expectations”.
Criticisms of the existing system included:
The changes that have been announced include:
The SORP-making body is actively recruiting engagement partners, individuals or organisations, who and will be exploring governance, transparency, simplification (tiered reporting) and the reporting needs of smaller charities.
A new SORP committee will be set up with representation from the UK and Ireland to support this work. The new arrangements are due to be in place by March 2020.
For more information, or if you are interested or knowledgeable about charity financial reporting then visit the Charity SORP website.