Overview

Statement Of Recommended Practice On Accounting And Reporting By Charities (SORPs)

The revised STATEMENT OF RECOMMENDED PRACTICE ON ACCOUNTING AND REPORTING BY CHARITIES (SORP) was issued by the Charity Commission in March 2005.

SORP 2005 took effect for accounting periods starting on or after 1 April 2005, where the charity's income is more than £100,000. All charities affected will therefore now be using the new statement

There is no change from previous SORPs as regards overall layout/structure. It updates previous SORPs to reflect practical experience and new financial reporting standards and also to take account of the Private Action, Public Benefit consultation.

International Financial Reporting Standards do not apply.

The following are some of the areas in which changes have been made.

• Trustees Report. -
  Stresses the reporting of activities and performance against objectives. - The name of the CEO must be given. - Policies and procedures for induction and training of trustees must be stated. - There is no restriction on supplying additional information such as a Chairman's report or an Environment report.
  
  
• Statement of Financial Activities (SOFA). -
  Show all incoming resources and resources expended in year on all funds. - New emphasis on analysis by activities to link incoming and outgoing resources. - Management and administration costs have been renamed Governance costs.
  
  
• Balance Sheet
  - Charities are encouraged to present this in columnar form as for the SOFA. - A new heading of Heritage assets has been introduced.
  

For further information email us at charities@moco.co.uk