Invitation to Comment on Exposure Draft Charities SORP

About the consultation

The Charity Commission for England and Wales, the Office of the Scottish Charity Regulator and the Charity Commission for Northern Ireland are the joint SORP-making body for charities. We publish the Statement of Recommended Practice: Accounting and Reporting by Charities (the SORP). The SORP applies to charities preparing accounts under UK-Irish Generally Accepted Accounting Practice (GAAP), to present a ‘true and fair view’. The SORP provides guidance on the Financial Reporting Standard (FRS) 102.

The SORP supplements accounting standards and other legal and regulatory requirements. It reflects the special factors prevailing and transactions undertaken in the charity sector. The SORP is developed in line with a SORP policy issued by the Financial Reporting Council (FRC). The FRC reviews the SORP before it is issued. When it is issued, it carries a statement confirming that it does not appear to contain any fundamental points of principle that are unacceptable in the context of current accounting practice and does not conflict with an accounting standard.

The SORP-making body must consult before issuing a new SORP. We are seeking views from charities, organisations, funders and individuals in the sector. This includes accountants, auditors, independent examiners and other professional advisers who work with charities.