In finalising the new accounting framework, the charity regulators across England and Wales, Scotland and Northern Ireland (who together make up the SORP-making body) have balanced a desire for simplicity and clarity for charities with the importance of transparency for donors and interested third parties.

This is reflected in a refreshed approach to Trustees’ Annual Reports to include a wider range of achievements and risks, alongside the introduction of three new tiers that require the most detail and transparency from the UK’s largest charities. Unless required by Financial Reporting Standard 102 (FRS 102), only charities with incomes of more than £15 million will be required to produce a detailed statement of cashflows, reducing the burden on charities with an income between £500,000

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