SORP 2005 - an essential management tool
Peter Gotham provides an update of SORP developments and highlights some financial reporting issues...
It is now 30 months since SORP 2005 was published , and according to the 1995 time table there is expected to be another SORP in 2010. In the meantime International Financial Reporting Standards (IFRS) are expected to form the basis for UK General Accepted Accounting Principles (UK GAAP) and the SORP should align with this. These are scheduled for roll-out out by 2009, which now seems rather ambitious and in any event it is likely that there will not be a conceptual framework providing an interpretational basis for the application of IFRS by charities. This is a problem if a new SORP is to be published about a year later, and makes the role of a new Charities SORP of even greater importance.
Author: Peter Gotham
Peter Gotham is a partner in Gotham Erskine, a non-profit specialist accountancy firm in London. He also chairs the Charity and Voluntary Sector group at ICAEW and is on the Charity SORP Committee
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