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Information sheet 1: implementation issues
The Charity Commission published in April 2017 its first information sheet to provide additional clarity on some of the new SORP implementation issues. The sheet covers 14 topics. Key clarifications include:
- Charities need not produce a parent-only or subsidiary cash flow statement where the charity or parent is included in a consolidation.
- Comparative figures are required for fund disclosures including the analysis of net assets by fund and the movements on material funds.
- Aggregate disclosure of non-conditional donations from trustees is only required where it is material in the context of total income from donations and legacies.
- Employers NIC should be included as part of employee benefits when making the disclosures regarding key personnel.
- Losses on the disposal of tangible fixed assets should be apportioned over charitable expenditure.
Clarity has also been provided over which grant making bodies may be considered part of “government” – for government grants disclosures.
The definition of a larger charity, a charity which is required to give additional disclosure in accordance with the SORP, as one with income over £500,000 is clearly separated from the audit threshold.