It also welcomes the recommendations for more detailed disclosure requirements in the trustees’ reports, the introduction of activity-based reporting and clearer guidance on cost-allocation, say the changes will benefit charities.

Andrew Watt, head of policy at the IoF, said: “The draft SORP is a step forward towards reporting fundraising in a more holistic manner that takes into account the varied nature of fundraising activities and its impact on organisations as a whole.”

Although it was a broadly positive response, the IoF took the opportunity to raise a few concerns, namely relating to the way in which upfront investment in fundraising programmes or appeals is presented in the accounts. However, it described the SORP as “continually evolving” and said it was keen to continue working with the Charity Commission and OSCR.

The Scottish Council for Voluntary Organisations (SCVO) has also published its response to the SORP. However it describes it as having “expanded its remit beyond the interpretation of accounting standards and is venturing into regulation” – a move it says may force Scottish Charities to adhere to English law.

The proposals in question relate to the requirement for an expanded trustees report, which have been added following recommendations from the Strategy Unit Report, Private Action, Public Benefit, which only applies to England and Wales.

Teresa Bray, finance director at SCVO, says: “Such proposals should be included in the regulatory framework drawn up by the Charity Commission and not included in the SORP, which has a wider jurisdiction.

“The Charity and Trustee Investment (Scotland) Bill will be creating a new regulatory framework in Scotland. Additional reporting requirements will be developed under this framework and must not be imposed on Scottish charities through the SORP.”