Charity SORP updated
The Charity Commission has published a SORP Update Bulletin addressing all new financial reporting standards and abstracts issued by the Accounting Standards Board since the publication of the revised Charities SORP in October 2000.
A key feature is that it includes recommendations about how charities should comply with FRS 17.
The Bulletin provides workable solutions for charity-specific issues arising from the amended standard, including:
- how pension costs are allocated across expenditure categories in the statement of financial activities, and against any salary-bearing restricted funds
- the circumstances in which it is appropriate to allocate a pension asset or liability to the balance sheet of any restricted funds.
In respect of the ASB’s decision to adopt international accounting standards from 1 January 2005, the Bulletin also provides recommendations for those wishing to adopt the full requirements on a voluntary basis ahead of this deadline. For further information visit www.charitycommission.gov.uk