Statement of Recommended Practice
Co-operative Accounting Statement of Recommended Practice (SORP)
International Committee: The Centre of Excellence in Accounting and Reporting for Co-operatives is working with an international committee of co-operative accounting practitioners and academics to develop a co-operative accounting statement of recommended practice (SORP). At the October 2019 annual meeting of the International Co-operative Alliance (ICA- the global apex organization for all types of co-operatives), the members unanimously passed a motion to develop international accounting standards for co-operatives, showing global support from the sector to pursue this initiative. The motion builds on the work of the Audit and Risk Committee of the ICA and CEARC. An International Co-operative SORP Committee, chaired by CEARC Executive Director, Daphne Rixon, has been formed to work on this project. Committee members include: Vivian Woodell, John Sandford, Russ Wasson, Fernando Polo Garrido, Maureen McCulloch, Daphne Rixon, Nickie Young, Sonja Novkovic, Ian Adderley and Elisavet Mantzari. The committee determined that the most expedient approach would be to first develop a SORP for co-operatives operating in the United Kingdom. After one country adopts the SORP, it will help facilitate adoption by other countries.
UK Subcommittee: We are commencing this project by working with Cooperatives UK (UK’s national industry association) to develop a SORP for co-operatives in the UK. A UK sub-committee has been formed to work on the following during 2021-22:
- Develop a discussion paper outlining the issues with current financial reporting practices as they relate to co-operatives
- Hold focus groups in the UK to solicit input from accounting practitioners who work in co-operatives
- Draft a UK SORP for Co-operatives and work with the UK standard-setters to facilitate its adoption
Who is involved with this Subcommittee?
- Co-operatives UK
- Daphne Rixon, CEARC
- Elisavet Mantzari, University of Birmingham
- John Sandford, Independent Chair of Co-op UK’s Co-operative performance committee
- Vivian Woodall, UK
- Maureen McCulloch, Oxford Brookes
- Ian Adderley, Financial Conduct Authority, UK
- Patrick Morrello, Third Sector Accountancy, UK
Additional information on the UK SORP, see: Focus Group Briefing Note - UK SORP
For more information on previous SORP research conducted by CEARC, see https://www.smu.ca/academics/sobey/cearc-isorp-project.html