Background

In mid-May, the Investment Management Association (IMA) issued a revised Statement of Recommended Practice: Financial Statements of UK Authorised Funds ('the new SORP'). The revisions to the previous SORP were prompted by a number of changes to the accounting and regulatory framework within which authorised funds operate. The new SORP is applicable for accounting periods beginning on or after 1 January 2015 with early adoption permitted.

Highlights of the revisions include:
  • No requirement for aggregated financial statements.
  • New comparative tables for each share class.
  • Effective interest method for calculating revenue on debt securities no longer mandatory.
  • New disclosure requirements for transaction costs.
  • Additional reporting requirements for non-UCITS funds under the AIFMD.
  • Extended fair value and investment property disclosures.

For further details on the revisions and the impact on authorised fund managers, 

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IMA SORP May 2014: An update (PDF)

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