Local Authorities

The Board approved for publication an Exposure Draft and Invitation to Comment for the 2008 Code of Practice for Local Authority Accounting. Following the major changes introduced in recent SORPs, including group accounts, the presentation of the primary statements and financial instruments, the proposals for the 2008 Code of Practice are less significant. Comments on the Exposure Draft and Invitation to Comment are invited by 30 January 2008.

The SORP Board has decided to prepare the 2008 Code of Practice in accordance with UK GAAP and, in addition, make sure that consolidation information, appropriate for the sector, is available for local government for the 2008-09 Whole of Government Accounts, which are to be prepared on an IFRS basis. The SORP Board is also taking forward work on developing and implementing a new IFRS-based Code of Practice that will allow local authorities to prepare IFRS based accounts from 1 April 2010.

Charities

The Charity SORP Committee issued an Information Sheet in December 2007. This does not amend the SORP, but it does clarify the SORP’s requirements in areas such as accounting for grants, the allocation of bank interest and other finance costs and the relevance of the business review. The Information Sheet is available on the Charity Commission website at http://www.charitycommission.gov.uk/investigations/sorp/infosheet1.asp

The Charity SORP Committee is taking forward plans for the development of the next SORP, including assessing the impact that convergence with IFRS will have on the accounting framework currently applying to charities. To initiate sector debate, the SORP Committee has approved proposals for consulting with stakeholders, including a conference in central London in April 2008 and a number of roundtable events later in the year.

Registered Social Landlords

The Board approved an unqualified Statement of Assurance for a Revised SORP for Registered Social Landlords in November 2007. This will apply for accounting periods beginning on or after 1 April 2008 with earlier adoption encouraged. To help with implementing the Revised SORP, particularly the new requirements for accounting for shared ownership sales and mixed tenure development, the National Housing Federation and PwC are to hold conferences in Birmingham and London in February 2008. The aim is to help the sector understand the key changes and practical impact of the new SORP.

Higher and Further Education

An updated version of the SORP, including an unqualified Statement of Assurance, was published by Universities UK in August 2007 and will apply to accounting periods beginning on or after 1 August 2007. Earlier adoption is encouraged. The new SORP provides enhanced guidance in areas such as income recognition, fixed assets and retirement benefits as well as providing more sector specific guidance in areas such as accounting for tuition fees, bursaries and research contracts.