On the 4th May the Charity Commission for England and Wales and the Office of the Scottish Charity Regulator (OSCR) published a research consultation on charities Statement of Recommended Practice (SORP) FRS 102.
The SORP FRS 102 is the guidance that charities accounts in the UK and the Republic of Ireland have to abide by and is based on the national reporting standard FRS 102 that was introduced January 2016. The consultation is being launched due to the expected review of FRS 102 next year by the Financial Reporting Council (FRC). The Charity Commission and OSCR are keen to ensure the FRS 102 works for charities, not just the for-profit sector.
So what does this new consultation hope to achieve?
The Charity Commission and the OSCR wants charities to comment on 5 key areas:
1. The SORP’s structure, format and accessibility
2. Issues charities might have in implementing the SORP
3. Specific suggestions to changes to the annual report and accounts by the SORP Committee members
4. Whether the themes identified in the consultation by the Charity Commission and the OSCR will help to meet the main purpose of the SORP
5. Recommendation on items to remove, change or add to improve the SORP
CFG hopes that this consultation will allow charities to voice their thoughts and advice on these areas of increasing concern for charities are pension liabilities and counter-fraud practices. This is a great opportunity to improve the standards of reporting in the charity sector and to ensure that readers of accounts can effectively hold charities to account.
CFG will be working with its members and across the sector to ensure that the consultation produces a SORP that is developed with the public interest in mind rather than becoming a method for knee-jerk response to media or political pressure.
Responses must be submitted by the closing date of the 11th December 2016.