Future of Charity Reporting
A new SORP
The Charities SORP provides guidance for charities on financial reporting and interprets financial reporting standards. The SORP is critical in underpinning sector transparency and accountability.
The new SORPs can be found online at www.charitysorp.org.
CFG responded to the original consultation on the SORP. For more information please see our press release and response. CFG also produced a briefing paper on the key issues - read CFG's SORP briefing.
CFG members can also get involved in the Technical Accounting Forum.
In 2011 the Accounting Standards Board (ASB) consulted on proposals for a new three tiered framework of financial reporting to bring the UK in line with international financial reporting standards.
Following the consultation process the ASB made the decision to abolish the first tier of the framework. This has meant that no organisations not already required to use full IFRS will have to move to it. There is however, a new standard based on the IFRS for SMEs. This is called FRS 102. The ASB has incorporated several elements into this standard that are specific to Public Benefit Entities (PBEs).
CFG has responded to a number of consultations throughout this process, and has raised the profile of issues that have come up for charities along the way. Many of these issues have been resolved but the new UK GAAP will inevitably bring about changes for charities.
The Financial Reporting Council published FRS 102 in early 2013. The principles in this document are the new UK Generally Accepted Accounting Principles (UK GAAP).
Small charities will be able to use the FRSSE (based on current UK GAAP). The SORP will be developed in a modular format to incorporate both the FRSSE and FRS 102.
The future of not-for-profit accounting at an international level
In July 2012 CFG held a Symposium with a number of CFG members, representatives from the main accounting bodies, and the International Accounting Standards Board (IASB), in order to discuss the future of not-for-profit financial reporting.
In particular we were interested in discussing the potential for future development of international standards for not-for-profits and how we may be able to raise the profile of the sector at an international level of standard setting.
Paper issued in advance of the meeting include:
1) What is different about not-for-profits
2) How might frameworks change
Our blog and summary discussion points from the meeting provide an overview of the discussion.
Briefings and consultation responses from CFDG:
Technical Accounting Forum
CFG has a Technical Accounting Forum (TAF) which discusses these issues. For more information please see the TAF web page.