Charity SORP, while not yet mandatory in Ireland is considered by the Regulator in Ireland to be best practice. The Irish Accounting and Reporting Regulations have been drafted by the Charities Regulatory Authority, but it may still take some time before they are through all stages of the legislative process. These regulations are likely to require the use of the Charity SORP for all charities with income in excess of €250,000.
In the interim period, it is considered best practice for charities to early adopt the Charity SORP. The SORP Committee in the UK is a committee formed by the SORP making body. The main purpose of the SORP Committee is to identify potential changes to the Charity SORP and advise the charity regulators who make the SORP rules. The SORP making body is comprised of the three Charity Regulators in the UK, and the Irish Regulator is also represented as an observer on the SORP making body. It is expected that the process to review and revise the SORP will take another 2-3 years.
There are a number of stages to the SORP revision process. The initial exploration stage has been completed and the engagement phase is now ongoing. During the initial exploration stage, the committee had been looking at what various researchers both in and out of the Charity Sector. The exploration phase has also been considering presentations from different interest groups.
Irish Charities, while now in the process of adopting the existing Charity SORP, will need to keep it in mind that they will at some point over the next 3-4 years be required to implement a new Charity SORP and FRS102 accounting framework.
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