Academy reporting under SORP 2015

Academy reporting under SORP 2015.

The Education Funding Agency has provided an overview of how the changes to charity reporting under SORP 2015 will impact academies. Unsurprisingly, given the effective date (accounting periods beginning on or after 1 January 2015), it recommends action now. 

It highlights that, as a minimum, “academy trusts should consider:

  • when the trust will first need to adopt SORP 2015 (for academy trusts incorporated before 1 January 2015 first adoption will be for the period ending 31 August 2016); 
  • revisiting their accounting policies; 
  • whether their accounting systems will be able to accommodate the changes; 
  • whether they need specialist assistance to identify transitional issues; 
  • whether staff need training on the changes to the SORP; 
  • obtaining valuations for fixed assets that they wish to measure at fair value at the transition date (for an established academy trust preparing accounts for the year ended 31 August 2016, the transition date will be 1 September 2014); 
  • whether any business combinations have been entered into in the comparative period. Any such business combinations will need to be restated and measured in accordance with SORP 2015, which may mean recognising separate intangibles. Business combinations undertaken prior to the transition date can either be exempted or restated; and 
  • whether the holiday year for staff and the academy trust’s financial year coincide. If not then the trust will need to consult with their HR team to determine the extent of any outstanding paid annual leave at the period end.” 
You can find more on accounting for academies here and here.