Charity accounting must change to meet ‘new public expectations’

with No Comments

A panel set up to review the future development of charity reporting and accounting has published its final report making a number of recommendations under five key themes. These recommendations are that:


  • The needs of the wider public and beneficiaries require a refocusing of the Statement of Recommended Practice (SORP) and greater simplification of reporting requirements for smaller charities
  • The SORP Committee should be retained but reforms are needed regarding size, composition and clarification of the respective roles of the SORP-making body and SORP Committee
  • Broader and ongoing engagement is needed with a much wider group of stakeholders if the SORP is to continue to be fit for purpose
  • The sector and charity regulators should collaborate to identify and codify best practice in non-statutory financial reporting
  • The SORP-making body, supported by the Financial Reporting Council (FRC) needs to ensure that the redesigned SORP development process takes effect
  • The charity regulators are asked to ensure that SORP process is adequately resourced to implement these recommendations