The SORP consultation so far...

Laura Anderson

Key areas of discussion • Structure, format and accessibility • Trustees’ Annual Report • Statement of Financial Activities • Specific accounting / reporting issues • Methods and principles • Simplification

Consultation questions (1)

The SORP’s structure, format and accessibility

• Modular format

• Smaller charities

• Terminology and language

Feedback - structure, format and accessibility

•Broad support for modular format

•Does more for smaller charities but perhaps could go further still?

•Options to tailor the content via the microsite are welcome

Consultation questions (2) The Trustees’ Annual Report

• Structure and content

• Requirements for reporting achievements and performance

• Level of information required

Feedback - Trustees’ Annual Report

• Retention of the ‘tell your story approach’ is supported

• Often difficult to get trustees engaged in preparing the report however

• Some concerns regarding disclosures of key risks and mitigation strategies

Consultation questions (3)

Statement of financial activities

• Simplification of format and headings

• Retention of columnar approach

Feedback – SoFA • Simplification of headings - mixed feelings

– Simpler language is good

– No ability to match income and expenditure

– No disclosure of governance costs on the SoFA – mixed response

– How well does the term ‘earned’ work in the charity sector?

Feedback – SoFA (continued) • Columnar format has significant support:

– Now familiar and accepted

– Distinction between unrestricted and restricted funds is critical

– Supports effective governance

Consultation questions (4)• Charity specific accounting and

reporting issues

• Charity specific disclosureso Grant making

o Staff salaries

• Source of disclosure requirements

Feedback – specific issues • Lively debates about salary disclosures – a

North / South divide?– Public interest – Accountability – Negative effects

• Sources of disclosure – mixed responses depending on audience

•

Consultation questions (5) • Accounting methods and principles

o Continued support for the FRSSE ?

• Removing unnecessary requirementso Simplifications agreed?

• Further simplification ?

Feedback – principles and simplification

• FRSSE and FRS 102: – Agree the draft supports both standards

– Could it do more to allow users to focus on requirements under each?

• Simplifications welcomed – e.g. requirements re summary financial statements

Why should I get involved?

• A real opportunity to influence the future of charity accounting

• Helping to develop the SORP into the best possible support tool

• Sector is so diverse so all opinions are needed and welcomed

How to comment Closing date 4 November 2013

•Web form available on microsite: www.charitysorp.org

•By email: SORP.thefuture@charitycommission.gsi.gov.uk

Comment by postNigel Davies, Secretary to the SORP CommitteeCharity Commission for England and Wales Woodfield House TangierTaunton TA1 4BL

Thank you for listening...

Please visit the SORP microsite at

www.charitysorp.org