HFMA response / Consultation response on the Update Bulletin 2 Accounting and Reporting by Charities

The SORP setting bodies issued a consultation on the Update Bulletin which will amend the Charities SORP to reflect the latest version of FRS 102. The changes introduced by the Update Bulletin will be applicable to accounting periods starting on or after 1 January 2019.

The HFMA’s response focused on those changes which are likely to affect NHS charities. These are confirmation of the requirement to include comparatives in the accounts for all disclosures, changes relating to investment properties and a new requirement to disclose movements in net debt as a note to the cash flow statement.

We are largely supportive of the amendments but have noted that the requirements for prior period comparatives for all disclosures can make the accounts difficult to read and does not align with current clear and concise disclosure initiatives.