Charity accounting rules to be reviewed

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The latest exposure draft on accounting for charities has been published, outlining proposals for reform of current accounting rules with a view to adoption in 2015 across the charity sector according to leading Northampton accountants Harris & Co who regularly provide accountancy services to many local charities.

The Charity Commission and the Office of the Scottish Charity Regulator, as the joint SORP-making body for charities, developed the new draft of the SORP [statement of recommended practice] in partnership with the Charities SORP Committee.

The Exposure Draft of the SORP sets out proposals for accounting and reporting by charities in the context of the new accounting framework introduced by Financial Reporting Standard (FRS 102) applicable in the UK and the Republic of Ireland for financial years beginning on or after 1 January 2015.

It is also relevant for smaller charities who may choose continue to prepare their accounts using the Financial Reporting Standard for Smaller Entities (FRSSE).

It is intended that the new SORP will apply to reporting periods starting on or after 1 January 2015, the same date as FRS 102 becomes mandatory.

The Charity Commission is seeking comment from preparers, auditors and examiners of charity accounts, trustees, employees and beneficiaries of charities and others who may use charity accounts including donors, funders, financial supporters and other stakeholders.

The four-month consultation will close for comments on 4 November 2013. A summary of the responses will be published in Q1 2014.


The Exposure Draft is available HERE

There will be a number of SORP consultation events for various sectors and professional bodies as well as a number of free events hosted by accountancy firms. These events will be advertised on the SORP micro-site at

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