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SORP Development: discover the SORP work plan for 2021-22

Author: Kristina Kopic, Head of Charity and Voluntary Sector, ICAEW

Published: 06 Sep 2021

The SORP 2021-22 work plan and commentary have been released by the Charities SORP-making body to show when the SORP Committee will make decisions on 15 areas identified for review.

You can read the work plan here and the commentary here.

These 15 areas encompass:

  • Narrative Reporting: The SORP Committee will discuss summary financial information, an enhanced focus on impact reporting, and sustainability reporting to cover topics beyond climate change, such as diversity reporting. The Committee will also consider clearer guidance for reporting on charity reserves.
  • Expenditure: This will include discussions about support costs to improve comparability and to tackle the problematic negative perception of overheads. Discussions will also include expenditure classification and activity reporting, an area which appears to be a poorly understood by some.
  • Income: Discussion about income will focus on accounting for grant income, including whether charities should be permitted to use the accrual basis of accounting for some or all grants. Other topics for discussion are the inclusion of donated goods and services in the Statement of Financial Activities (SOFA) and the clarity of guidance on the accounting treatment of legacy income.
  • Presentation of Financial Statements (including the Notes to the Accounts): The SORP Committee will discuss the presentation of the SOFA, how to reduce the length and complexity of the notes to the accounts, more clarity on the Funds notes and guidance on materiality to help larger charities present a clearer message.

The work plans cover the period to January 2022 and concludes with the beginning of the new SORP being drafted.

More information on the SORP Development can be found on the SORP Committee’s webpage.