In the UK, all charities are regulated by the Charities Commission, and in 2005 the Charities Commission issued a Statement of Recommended Practice in connection with the preparation of financial statements by charities and not-for-profit.
The Commission states that SORP 2005 provides a framework that enables charities to explain what they aim to do, how they go about it and what they achieve. It does so in a way that pulls together narrative and financial reporting into a coherent package focused on activities undertaken. The SORP details out formats for the presentation of the Trustees’/Directors’ Report and the layout of the financial statements.
Although not mandatory in Ireland, most of the larger Irish charities have begun to adopt the use of SORP 2005 in the preparation and presentation of their financial statements.
The Charities Act 2009 does not stipulate that charities and not-for-profits in Ireland should adopt SORP 2005. However, most such organisations will probably adopt SORP 2005. The exact detail of the format and content of financial reporting to be required under the Charities Act 2009 have not yet been determined. However, it is widely anticipated that the ABS, and subsequently, the Charities Act 2009 will stipulate SORP 2005, or very similar, format of financial reporting for charities in Ireland.
Dowload a copy of the SORP here.