The lowest income threshold of £500,000 proposed for the next version of the charities accounting framework is too low and could burden smaller charities, audit firm RSM UK has said.
The updated version of the Charities Statement of Recommended Practice (SORP), a consultation on which closed today, proposes three tiers of guidelines based on annual income levels, the lowest of which is £500,000. Nick Sladden, partner and head of charities at RSM UK, said that while introducing three tiers was a “positive step towards supporting proportionality”, the £500,000 threshold “risks putting additional burden on smaller charities”. Read more here.