Following the 2013 consultation, the Charity Commission has published two new Charities SORPs, changing the way charities report on their activities.
The two new SORPs reflect significant changes to the accounting framework that will apply to accounting periods starting on or after 1 January 2015 and these changes will affect comparative figures when accounting treatments change.
Larger charities (broadly those with income above £6.5m) will be most affected by the changes, which are mainly driven by the introduction of the Financial Reporting Standard (FRS 102). FRS 102 replaces all previous accounting standards (FRSs, SSAPs and UITF) with a single standard.
Smaller charities can use the Financial Reporting Standard for Smaller Entities (FRSSE) or choose to use FRS 102. Smaller charities will therefore need to make a choice as to which standards and SORP they use
The new SORPs also introduce some changes to the Trustees' Annual Report which will particularly affect charities over the audit threshold and the way they explain executive pay, their reserves and the risks they face.
Who is this session aimed at?
Trustees who want to understand their roles and responsibilities and get an overview about how the SORP changes will affect their areas of responsibility. The session will explain changes to the Trustees Annual Report and set out simply the impact of change on charity accounts.
The session will also help trustees decide whether their charity should use FRSSE or FRS 102 SORPs and will explain simply the time-line and how to plan for transition.
The session is designed for trustees and will not assume any detailed knowledge of accountancy but may also be helpful to a charity's accounting staff who want an overview of the new framework.
Ray Jones is a Chartered Accountant and is working with CFG to deliver the SORP training. As the former Head of Accountancy Policy at the Charity Commission, Ray brings a wealth of experience and knowledge of the SORP. He was the Charity Commission’s representative on the Charities SORP Committee and also sits as an observer member on the FRC’s Committee on Accounting for Public-benefit Entities (CAPE) and on the ICAEW’s Charities Technical Sub-Committee. Ray was also a member of the APB’s working group that developed Practice Note 11 on the audit of charities and is currently a Visiting Lecturer on advanced charity accounting at Cass Business School, City University, London.
This workshop also takes place in Birmingham, on 12th November, in partnership with Sayer Vincent. Speakers are Ray Jones (above) and Joanna Pittman:
Jo is a partner at Sayer Vincent, having qualified as a chartered accountant with Sayer Vincent in 2002 and then progressed as a manager and a senior manager. She has a Diploma in Charity Accounting awarded by the ICAEW and Cass Business School.
In addition to managing audits for a diverse client portfolio, Jo has worked on a number of VAT reviews, corresponding with HM Revenue & Customs over clients' VAT matters, and assessing the VAT implications of new projects including property construction.
Jo leads Sayer Vincent’s internal technical specialist group and is a house tax expert, keeping both staff and clients up to date on technical and tax matters.