Deadline 4th April
Consultation on changes to the Charities Statement of Recommended Practice is now open
The Charity Commission for England and Wales and the Office of the Scottish Charity Regulator, who together are the SORP-making body, are inviting comments on amendments to the Charities Statement of Recommended Practice (SORP) following changes in UK-Irish accounting standards.
The consultation launched will run for 6 weeks and focuses on 21 proposed amendments to the SORP which are considered necessary as a result of the changes made in December 2017 to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. These changes are to be made via a second Update Bulletin and include:
- the introduction of an accounting policy choice for entities that rent investment property to another group entity
- the clarification of the accounting treatment for payments by subsidiaries to their charitable parents that qualify for gift aid
- the clarification of the requirement for comparatives for disclosures required by the SORP
- the introduction of a requirement for a net debt reconciliation to be prepared as a note to the statement of cash flows
The consultation will close on Wednesday 4 April 2018. For more information, including the draft SORP Update Bulletin, and detail on how to respond refer to the dedicated SORP site. Details of consultation events are also available on the site. The changes will come into effect for accounting periods beginning on or after 1 January 2019.