The Charities SORP-making body has set out plans to change the way 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.
The group is introducing changes to the development process of the SORP following a comprehensive governance review, which recommended that it must change in order to meet “new public expectations”.
The review was led by Professor Gareth Morgan and its findings and recommendations are available on the SORP website
A new process for developing the SORP is intended to be in place from 2020. The process needs to ensure a SORP that is both technically correct for true and fair accounting and that produces a report and accounts that users can understand and meets their information needs. Changes being announced today include:
- reforms to the SORP committee to ensure a stronger culture of constructive challenge, better stability, and better representation of small charities and funders with an interest in the impact charities have
- the introduction of a new engagement process; 7 stakeholder groups will be set up to work in partnership with the SORP committee. Each engagement strand will involve individuals and organisations with an interest in financial reporting and the work of the sector, to ensure user needs are understood and considered early on in the process of writing the next SORP.