The latest draft SORP (Statement of Recommended Practice) on the new accounting framework for investment trust companies (ITCs) and venture capital trusts (VCTs) is now available for review by stakeholders in the run-up to the introduction of the new UK GAAP in January 2015.

The Association of Investment Companies (AIC) has published an exposure draft (ED), Financial Statements of Investment Trust Companies and Venture Capital Trusts, on an updated SORP setting out revised proposals for accounting for ITCs and Venture Capital Trusts VCTs in the UK, for comment by 19 March 2014.

The revised SORP will replace the current 2009 SORP, due to new financial reporting standard, FRS 102.

In addition, since the 2009 SORP was issued, there have been changes to company and tax law affecting the sector. One of the major changes, previously prohibited by company and tax legislation, is that ITCs and many VCTs can now distribute capital profits by way of dividend. This requires the redrafting of several paragraphs of the 2009 SORP.

The comment period closes on 19 March 2014. Details are available from AIC