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AIA

Institutes seek views on charity financial reporting

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20th Nov 2013
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The CCAB, a lobby group representing the main accountancy institutes, wants to hear how financial reporting rules for charities can be improved.

The CCAB, which includes the ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland, wants not-for-profit organisations to do an online survey by 9 December.

As AccountingWEB reported in September, the institutes have appointed academics to research whether there should be international standards for financial reporting by not-for-profit organisations.

The survey has been developed by an international team of researchers from four universities across three countries carrying out the research

The team is led jointly by professor Gareth Morgan of Sheffield Hallam University and Louise Crawford of the University of Dundee, Carolyn Cordery of Victoria University of Wellington and Dr Oonagh Breen of University College Dublin.

Charities receive billions of pounds in donations each year but their rules vary. This can make it hard for governments, businesses and individual donors to check how their money is spent and compare the performance of charities.

In the UK, charities use accounting guidelines called “statement of recommended practice” (SORP), which explains how international accounting and financial reporting rules can be adapted for charities.

The Charities Commission is consulting on draft new accounting guidelines for charities.

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By johnjenkins
21st Nov 2013 11:15

So what's wrong

with SORP.

As long as the accounts show where the money has come from and where it goes to, I don't see a problem. The only concern I have with some non profit oranisations is that some seem to think large reserves are needed in case of a "rainy day".

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