The Investment Management Association has published an updated Statement of Recommended Practice for financial statements of authorised funds dated October 2010 (the “SORP”).
The SORP supersedes the previous SORP for authorised investment funds and sets out recommendations for the preparation of financial statements for authorised funds. In addition to providing standard interpretations of accounting standards and other legal and regulatory requirements, the SORP establishes principles for determining the nature of items as revenue or capital for the purposes of both distribution and taxation.
Compliance with the SORP is required by the FSA’s Collective Investment Schemes sourcebook (COLL).
The IMA has also published a feedback statement to its consultation on revising the SORP.