New charity SORPs welcomed
New financial reporting rules for charities will be more flexible and easier to understand, according to the Charity Commission.
The commission said most charities supported its plans for new statements of recommended practice (SORP), which are based on the latest updates to UK financial reporting standards.
The rules are due to start for accounting periods beginning on or after 1 January 2015.
They reflect some of the main shifts towards IFRS implemented in UK financial reporting standards such as FRS 102 and the financial reporting standard for smaller entities (FRSSE).
Charities can chose a SORP based on FRS 102 or FRSEE.
AccountingWEB’s audit expert Steve Collings said he agreed with the changes to SORP: “The continuance of a shortened version of the SORP for smaller charities reporting under the FRSSE is to be welcomed, although given the FRC’s tentative thoughts on withdrawing the FRSSE, this has the potential to be short-lived.
"But it is highly likely the Charities Commission will still have a SORP for smaller charities. The new SORPs will clarify how charities should account for legacy income," he said.
The new SORPs include...