Charities SORP: Most Recent Changes

Business Man Working

Following the introduction of FRS 102 (Financial Reporting Standards), the not so new (now) all-encompassing Accounting Standards in 2016 and further changes made to it in December 2017, the Commission has deemed its necessary to amend the Charities SORP. Surprise, surprise! The commission started a six-week consultation process and are focusing on about 20 amendments to SORP.

The key changes and the interesting few are:

  • Letting out investment property to another entity in the group, a separate accounting policy for this is up for discussion.
  • Introduction of a requirement for a net debt reconciliation. Cannot think why they would want to include this but who are we to question?!
  • Payments by subsidiaries to their parent charity which qualifies for Gift Aid; the accounting treatment of these payments is up for consultation.

There are a number of other changes which have been proposed but the above are what we consider to be the key areas. We do not think that this will have a significant impact on majority of the large charities. If you are Scottish-based charity, you will be part of this consultation as well.

The consultation closes on 4 April 2018 and the changes will come into effect for accounting periods beginning on or after 1 January 2019.
For more advice on how the Charities SORP changes could affect your organisation, contact our partner Suda Ratnam on 020 8551 7200 or

You can also send us an email on our dedicated helpline – Whether it’s about legislation, branding or GDPR we’re here to help.

Follow our Twitter for more tips and news surrounding the charity sector.