Charities SORP

COVID-19 control measures and financial reporting by charities

The SORP-making body has published guidance for trustees and preparers of charity accounts looking at the potential impact of the control measures to contain COVID-19 on financial reporting by charities. The guidance considers the implications for the trustees’ annual report, going concern and the alternative basis to going concern when preparing accounts under the SORP:

Implications of COVID-19 control measures and charity financial reporting: PDF | Microsoft Word

Other sources of advice

The SORP-making body is keen to signpost to other sources of authoritative advice regarding accounting issues posed by COVID-19:

Trustees may also find the FRC’s guidance to company Directors helpful when looking at their assessment of going concern: https://www.frc.org.uk/news/april-2016/guidance-on-the-going-concern-basis-of-accounting

The ICAEW Charity Finance Professional Community has produced advice on resolving common accounting issues: https://www.icaew.com/technical/charity-finance-professional-community/coronavirus/covid-19-implications-for-charity-accounting

The ICAS has developed some guidance to assist charities consider going concern issues:

There is the full guidance: https://www.icas.com/__data/assets/pdf_file/0003/554844/ICAS-going-concern-guidance-for-charity-trustees.pdf

And summary guidance with a short video clip: https://www.icas.com/landing/charities/charities-resources/key-going-concern-considerations-for-charity-trustees-between-the-covers-of-our-guide

The CAI have a dedicated COVID page identifying various sources of helpful guidance, albeit aimed mainly at for-profit entities:

https://www.charteredaccountants.ie/Member/Technical/financial-reporting-implications-of-coronavirus