News

Accounting and reporting

12 December 2016

Consultation response - Research exercise on charities SORP (FRS 102)

CFG has submitted its proposed revisions and recommendations on charities SORP. Our response draws on the evidence gathered through our consultation process with our members and the wider sector.

Where next?

Events »

Thursday, 5 December 2024
Boosting Efficiency: Dynamics 365 Business Central More »

News »

Friday, 1 November 2024
A message to our members More »

Our recommendations are summarised below, or you can view the full consultation response.

We believe that the SORP is too long and that steps which is hampering the ability of readers to understand the report and accounts and is also increasing the burden on already stretched charitable resources.
We believe that retention of a SORP is necessary and benefits both the public and the charity sector.
We recommend that governance costs should not be shown as a separate component of support costs within the notes because it does not adequately reflect governance within charities and adds unnecessary complications.
We would also support significant simplification of reporting on financial instruments and hedge accounting as these make the accounts too complex for the general public to read.
We would recommend the reversal of investment gains and losses as sitting “above the line” on the SoFA and should revert to sitting “below the line”.
We do not support the recommendation of a Key Facts Summary and our consultation activities returned very little support for its introduction.
We advise against further definition and guidance on reserves in the SORP.
We recommend that the separate reporting of support costs should be abolished.
We agree that the SORP would benefit from clarification of the approach that charities can report on how they have achieved public benefit.
We do not support the view that charities could be made to explain how their beneficiaries are involved in service design.
We do not support the proposals under the theme of enhanced analysis of expenditure. We are concerned that these proposals are not being made with charities and the public interest in mind, but due to recent intense media interest in the charity sector.
We do not believe that administration or fundraising costs should be more detailed, and administration costs (similar to support costs) should be abolished. Charities should be encouraged to provide explanation for their approach and performance in their narrative report, rather than through financial disclosures.
We recommend that any disclosing of jurisdiction of charity funds should remain voluntary and not mandated in the SORP.
We found little support for the NCVO proposals that larger charities should disclose the post and pay of senior employees beyond what the SORP already requires.
We do not support the mandatory disclosing of who funds charities.

For more information on this response please contact policy@cfg.org.uk

« Back to all news

News

Consultation response - Research exercise on charities SORP (FRS 102)

Related Content

A message to our members

New faces at CFG: Welcome Kath and Sue!

Presentation: Finance as the Turnaround Leader

A year of purpose and empowerment

Scotland charities and 31 December filing deadlines

Sector experts join forces on charity investment governance

Charities and insolvency: a briefing (updated March 2023)

CFG's Trustee's Annual Report 2021/22

Help the Charity Commission develop digital reporting

Cash Held as Investment

Financial disclosure reporting checklist: Charities SORP (FRS 102)

CFG Annual Conference gets off to a flying start

Nonprofit storytelling

CFG responds to first ever consultation on developing global financial reporting standards

Finance Focus July 2021

HSBC Private Banking leads the way for CFG's Annual Conference 2021

Finance Focus June 2021

Finance Focus May 2021

Finance Focus April 2021

CFG Briefing: Budget 2021

Finance Focus January 2021

Finance Focus November/December 2020

Finance Focus October 2020

Welcome to IFR4NPO

Finance Focus September

Coronavirus: financial reporting issues for charities

How to guide: Covid 19 Charities SORP Committee Guidance

Finance Focus July 2019

Annual Report 2017-18: Empowering Your People

Finance Focus May 2018

The key to good governance - truly understanding the business

CFG submits consultation response to Annual Return 2018 Survey

Sarah Atkinson - Have your say on the annual return for charities

Do I need a fraud response plan?

Fraud and the 3 C's

CFG has submitted a response to the Financial Reporting Council’s invitation to comment on the exposure draft of Practice Note 11: The Audit of charities in the United Kingdom (PN 11)

How can charities ensure they work towards gender equality in their organisation?

What can charities learn from the recent fraud cases?

Record management in charities: a toolkit for improvement

Annual Report 2016-17

IFS 2017 Green Budget – the good, the bad, and the worrying?

Responsible Record Keeping: what do voluntary organisations need to know?

You must not miss your chance to shape the next SORP

CFG Consultation Response for Matters of Material Significance

Tony Armstrong looks at Devolution: working with local organisations to transform public services

Devolution is our chance to advocate for the most vulnerable

CFG's SORP Survey

Record management in charities: a toolkit for improvement

EU Referendum: What could this mean for charities?

Another day, another opportunity for charities to engage in a consultation

Friday Afternoon Fraud

Is the SORP FRS 102 working for you?

Which SORP is right for you?

Banking for Charities

Annual Report 2015-16

Hunting for the silver lining; the IFS, the economy and charities.

What did the Romans ever know about data protection?

Cuts to BLF could have big financial consequences for charity sector

What’s the risk? Implications of the summer budget for housing associations

Audit or independent examination?

Why is transparency and reporting important for charities?

A chance to restart the social investment conversation

Can charities help end the ‘pushmi-pullyu’ of local government spending to support prevention?

Caron’s comment: can profit and social change mix?

Audits, thresholds and transparency

Best foreign exchange practice for Charities and NGOs - white paper

Are charities losing their voice?

Vision for sector post-2015. What did the politicians have to say at the CFG Annual Conferece?

Making CFG fit for the future

Annual Report 2013-14

Accounting at the sharp end: A report from the Community Accountancy Conference 2014

'Professionalism' is not a dirty word

A change in economic outlook- is your charity sinking or swimming… tell us!

Accounting for different charity structures

CFG has its say on the Charities SORP consultation

CEO pay - the wrong reaction?

The silver lining in the charity salary saga