Geoffrey will take up the position on 1 April 2015, replacing the current chair, Richard Fleck.

The press release can be found on the FRC website, here.

SORPS are intended to supplement accounting standards and other legal and regulatory requirements to reflect transactions or circumstances that are unique to particular sectors such as housing and pensions.

The revised SORP, published by the NHF, sets out revised guidance for accounting for registered social housing providers in the UK.  It has been published following an original consultation in December 2013 and a second consultation on impairment of social assets in April 2014.

The revised SORP, published by the PRAG, which will replace the current 2007 SORP, sets out revised guidance for financial reporting by pension schemes.  It has been published following a consultation in April 2014.

The revised SORPs are effective for accounting periods beginning on or after 1 January 2015, consistent with the effective date for FRS 100 ‘Application of Financial Reporting Requirements’, FRS 101 ‘Reduced Disclosure Framework’ and FRS 102.

Copies of the SORPs are available from the NHF and PRAG websites.  A Deloitte guide to the pension SORP is available here.

*Update June 2015 - the PRAG and the Investment Association have published a practical guide to help pension schemes, their accounts preparers and investment professionals in implementing the investment disclosure requirements in the revised pensions SORP.  The guidance is available to PRAG members and members of the Investment Association on the PRAG website.  Deloitte has published a briefing on this practical guide which is available here.* 

*Update February 2016 -the PRAG has issued additional guidance (link to PRAG website) that should be read alongside the pensions SORP.  This provides additional amendments that are required to the pensions SORP due to amendments to FRS 102.  Most of the amendments to FRS 102 relate to areas that are not relevant to pension schemes or where they are relevant they are already consistent with the content of the SORP.  However two amendments regarding disclosures required where the financial statements depart from FRS 102 and the definition and disclosure for related parties are relevant and are covered in the guidance. The PRAG does not expect these amendments to be significant for pension schemes.  The changes are effective from 1 January 2016 with early adoption permitted from 1 January 2015.* 

SORPS issued by the AIC and their SORP Working Party apply to investment companies preparing accounts under UK GAAP to present a ‘true and fair view’ and are intended to supplement accounting standards and other legal and regulatory requirements to reflect transactions or circumstances that are unique to the sector in which they operate.

The revised SORP updates the previous SORP (link to AIC website) to include the requirements of FRS 100 ‘Application of Financial Reporting Requirements’, FRS 101 ‘Reduced Disclosure Framework’ and FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'; the three main standards that were introduced as a package to replace UK GAAP.  Many paragraphs of the SORP have also been re-drafted to incorporate recent legislative changes which allow investment companies to distribute capital profits by way of a dividend.

Some of the most significant changes included in the revised SORP include:

• A recommendation to present total comprehensive income for the period as a single statement as permitted under FRS 102.
• A recommendation that investment companies present the changes in their equity in a separate statement of changes in equity.
• No requirement for investment companies to provide a cash flow statement, subject to certain conditions.
• Investments to be measured at fair value with changes in fair value recognised in profit or loss
• Investments held as part of an investment portfolio are excluded from consolidation.
• No requirement to prepare consolidated financial statements where an investment company only has subsidiaries held as part of an investment portfolio.

The revised SORP is effective for accounting periods beginning on or after 1 January 2015, consistent with the effective date for FRS 100, FRS 101 and FRS 102.  Early application is permitted.

The revised SORP can be obtained from the AIC website, here.

The Government Financial Reporting Manual (FReM) is the technical accounting guide to the preparation of financial statements. It complements guidance on the handling of public funds published separately by the relevant authorities in England and Wales (HM Treasury and the Welsh Assembly Government respectively), Scotland (the Scottish Government) and Northern Ireland (the Executive Committee of the Northern Ireland Assembly). The FReM is prepared following consultation with the Financial Reporting Advisory Board (FRAB) and is issued by the relevant authorities.  

The FReM applies to “all entities, and to funds, flows of income and expenditure and any other accounts that are prepared on an accruals basis and consolidated within Whole of Government Accounts (with the exception of the accounts of any reportable activities that are not covered by an Accounts Direction)”.  It does not apply to Local Government, those Public Corporations that are not Trading Funds, and NHS Trusts and NHS Foundation Trusts.   

The latest version of the FReM can be accessed on the HM Treasury website, here.

The role of the Financial Reporting Advisory Board (FRAB) is “to ensure that government financial reporting meets the best possible standards of financial reporting by following Generally Accepted Accounting Practice (GAAP) as far as possible”.  The FRAB includes representatives from the accountancy profession in the private and public sectors, academia and government bodies.  The board meets regularly to consider proposed changes to policy and practice.

Key topics discussed during the meeting were:

• The proposed introduction of IFRS 13 Fair Value Measurement into the various public sector accounting manuals for the 2015-16 financial year.  HM Treasury proposed application of IFRS 13 without adaptation by the public sector, but with enhanced guidance in the FReM to explain the restrictions that are likely to apply in the public sector.  The Treasury also proposed amendments to the categories into which public sector assets can be classified for accounting purposes, introducing a new category of 'surplus assets not held for their service potential'.  In a change from the current FReM, it was proposed that in the 2015-16 FReM assets that fall within this category, as well as surplus assets held for their service potential which are not subject to restrictions on sale, should be valued based on their highest and best use.  The FRAB agreed the introduction of IFRS 13 into the FReM for 2015 as proposed.  However, the FRAB did not support a further amendment proposed by the Department of Transport to introduce an option for an entity to elect to apply IFRS 13 without interpretation to assets which are held for their service potential but where the entity's business model is to hold the assets to generate future inflows of economic benefit.
• An initial discussion on the implementation of IFRS 9 Financial Instruments for public sector bodies.  FRAB members noted that it is hard to predict the impact given the potential for changes in policy and that the next step would be for the Relevant Authorities to plan for the introduction of the standard.  This should be on the basis of the current effective date as EU adoption is now expected on time.
• An initial discussion on the implementation of IFRS 15 Revenue from Contracts with Customers for public sector bodies.  The FRAB agreed that it was necessary to begin the initial steps of implementing this standard and that a working group of the Relevant Authorities should be set up.
• An update on the progress of the European Union's EPSAS project.  The Chairman concluded that, regardless of the approach ultimately taken in Europe, there would remain a need for the FRAB.
• An update on the Simplifying and Streamlining Annual Report and Accounts project since the June 2014 meeting.  In particular, Board members commented on the need for clarity regarding the boundaries of the requirement for the Annual Report and Accounts to be fair, balanced and understandable and discussed how sustainability should be incorporated into the Annual Report.  They also discussed proposals for a 'FREM light' for certain entities and developments in public sector integrated reporting
• Approval of the updated FReM and illustrative financial statements for the 2015-16 financial year, as well as minor updates to the 2014-15 FReM.  The 2014-15 amendments were approved, with some minor amendments proposed to the 2015-16 requirements.
• The proposed amendments to the Code of Practice on Local Authority Accounting both for 2014-15 and 2015-16, following the CIPFA/LASAAC consultation on this.  The 2014-15 amendments were approved, with some minor amendments proposed to the 2015-16 requirements.
• Approval of the Department of Health Group Accounting Manual 2014-15.
• The working practices of the FRAB.  It was noted that there are relatively few meetings of the Board and the Secretariat were asked to consider this point.

The agenda, detailed minutes of the meeting and copies of the papers presented are available on the HM Treasury website.

The requirements published by the FCA supplement the requirements of the Reports on Payments to Government Regulations 2014 introduced into UK law in December 2014.  The FCA's instrument extends the scope of these requirements to include entities incorporated outside the EEA whose only or first EEA listing is London and also accelerates the timetable within which the report must be published by listed companies (unlisted companies in the extractive or logging industries must publish a report within 11 months of the year-end).

The policy statement is available from the FCA website.

The new standard – Financial Accounting Standard No. 27 (FAS 27) Investment Accounts – updates and replaces two earlier standards (FAS 5 and FAS 6). It applies to investment accounts based on certain mudaraba contracts but does not apply to own equity instruments, wakala contracts, reverse murabaha, musharaka or sukuk. The new standard will be included in the next publication of AAOIFI standards scheduled for early 2015.

Please click for access to the corresponding press relase on the AAOIFI website.

The FRC is looking for one new member with good experience as an auditor of a major public company, one with good experience as a finance director of a major public company and one from an investment background.

The closing date for applications is 23 January 2015.

Please click for more information on the FRC website.