The Shadow Sorp Committee headed by BDO partner Don Bawtree has expressed unease about the length and complexity of the first draft of the new Sorp, and suggested that it might be better reduced to a principles-based statement.

Bawtree told civilsociety.co.uk that the committee recognised the 200-page charity Sorp is “inevitably going to be a long document” if it is aiming to be a “one-stop shop” for those preparing accounts. However, he describes the draft as “an already bulging list of questions and issues” and poses the question: “Should the Sorp attempt to be so comprehensive, or could it instead cross-refer to other standards where necessary?”

He accepted that the new Sorp aims to cater for people with hugely varying levels of accounting knowledge and ability, from volunteer treasurers to professional accountants, and added: “The implication is that the charity sector needs a greater degree of hand-holding than other sectors.”

However, as there are already many places where the document cross-refers to other standards, Bawtree said there is a clear choice to be made - “keeping the Sorp as it is, or reducing it to a principles-based statement”.

“We note that the Charity Commission has in the past issued bulletins on accounting topics, or used its FAQ section of the website, and that therefore there are alternative approaches already in use that would allow for a briefer Sorp supplemented by guidance from the regulators.”

'Unnecessarily prolix'

He said that in many places the draft was “prolix” - defined by thefreedictionary.com as “tediously prolonged” - and added: “It would be interesting to know if users see this as useful guidance, or adding unnecessary confusion.

“For instance, it is clearly the intention that legacies should be recognised close to probate, and that donated stock or volunteer time should not be treated as income.  It would be simpler for the regulators simply to say so, rather than discuss it. Similarly it might be simpler to force harmonisation with company accounting.”

The committee also queried whether the proposed new format is the only solution: “A further option would be whether charities should be able to choose between the multi-columnar approach or an alternative.”

New concepts introduced in the exposure draft, such as “general volunteers” and “de facto trustees”, should be better defined if they are to stay in, because they will be unfamiliar to users.

The Shadow Sorp Committee is still keen to hear the views of others to inform its final submission to the consultation. Interested parties can email Don Bawtree here.

The official consultation by the Charity Commission and OSCR closes on 4 November.

A more detailed analysis of the draft Sorp will appear in the October edition of Charity Finance.