Complete guide to the Statement of Recommended Practice (SORP) for charity accounting. Learn about the accounting framework, key concepts, and compliance requirements for UK charities.
The Statement of Recommended Practice (SORP) is the accounting framework that UK charities must follow when preparing their accounts. It builds on general accounting standards to address the specific needs and complexities of charity accounting.
SORP is issued by the Charity Commission and provides guidance on how charities should present their financial information, account for different types of funds, and disclose relevant information to stakeholders.
All charities preparing accruals accounts must follow SORP. It ensures consistency across the charity sector and enables meaningful comparison between different charities' financial statements.
SORP requires charities to maintain separate records for different types of funds - unrestricted, restricted, and endowment funds. This ensures donor restrictions are properly respected.
The SOFA shows income and expenditure for the year, analysed by fund type. It provides a clear picture of how resources have been generated and applied.
SORP requires charities to demonstrate how they provide public benefit. The trustees' report should explain the charity's purposes and how activities achieve those purposes.
Comprehensive notes provide additional detail on accounting policies, specific transactions, reserves, and other matters necessary for a proper understanding of the accounts.
Our specialist charity accountants ensure your accounts comply with SORP requirements. Contact us today for professional assistance with your charity accounts.