Future of Charity Reporting
New FRS and SORP
The Financial Reporting Council are expected to publish the new Financial Reporting Standards in late March 2013. FRS 102 will be the new financial reporting standard applicable to all organisations in the UK and Republic of Ireland, and will come into force from 01 January 2015. FRS102 will be the basis for the new SORP (Statement of Recommended Practice), which is expected to be released for consultation by the Charity Commission in summer 2013. The new SORP will take into account the requirements of the different tiers and the PBE specific requirements. CFG will inform members on consultation dates nearer the time and there will be plenty of opportunity to put forward your views and opinions - we look forward to hearing from you on this key topic. Please email Kat with any queries.
In 2011 the Accounting Standards Board (ASB) consulted on proposals for a new three tiered framework of financial reporting to bring the UK in line with international financial reporting standards.
Following the consultation process the ASB made the decision to abolish the first tier of the framework. This has meant that no organisations not already required to use full IFRS will have to move to it. There is however, to be a new standard based on the IFRS for SMEs. The ASB has incorporated several elements into this standard that are specific to Public Benefit Entities (PBEs).
CFG has responded to a number of ASB consultations throughout this process and has highlighted our concerns with some of the wording in the proposed new standard. (More information can be found in the resources below.)
Small charities will be able to use the FRSSE (based on current UK GAAP). The SORP will be developed in a modular format to incorporate both the FRSSE and the new standard.
The future of not-for-profit accounting at an international level
In July 2012 CFG held a Symposium with a number of CFG members, representatives from the main accounting bodies, and the International Accounting Standards Board (IASB), in order to discuss the future of not-for-profit financial reporting.
In particular we were interested in discussing the potential for future development of international standards for not-for-profits and how we may be able to raise the profile of the sector at an international level of standard setting.
Paper issued in advance of the meeting include:
1) What is different about not-for-profits
2) How might frameworks change
Our blog and summary discussion points from the meeting provide an overview of the discussion.
Briefings and consultation responses from CFDG:
Technical Accounting Forum
CFG has a Technical Accounting Forum (TAF) which discusses these issues. For more information please see the TAF web page.