Changes to the Investment Trust Companies and Venture Capital Trusts SORP open for comment
The Association of Investment Companies is consulting on changes to the Statement of Recommended Practice: Financial statements of investment trust companies and venture capital trusts (the AIC SORP)
The AIC SORP is applicable to investment trusts or venture capital trusts preparing financial statements in accordance with United Kingdom law and UK Financial Reporting Standards (FRSs).
The AIC has published an invitation to comment setting out the proposed changes and the rationale for those changes. The consultation focuses on targeted amendments about the disclosure of substantial holdings in unquoted investments.
The consultation is open until Friday 22 April 2022.
The following changes to the SORP are being proposed to address stakeholder concerns:
- The removal of the requirement to disclose unquoted investee undertakings comprising 3% or more of any class of capital.
- The removal of the requirement to disclose the proportion of capital owned.
- The highlighting of other relevant disclosures regarding significant holdings contained in UK company law and FRS 102.
- The inclusion of definitions for a ‘regulated market’ and a ‘prescribed market’.
The invitation to comment includes further information about the proposed amendments, including further details of the rationale for these.
While the effective date of any changes to the AIC SORP arising from this consultation has yet to be settled, it will likely be for periods commencing on or after 1 January 2022 with early adoption encouraged.
This consultation is separate from the UK Financial Reporting Council’s ongoing periodic review of FRS 102. The proposed effective date of amendments to FRS 102 arising from the periodic review will not be implemented earlier than periods commencing on or after 1 January 2025.
Anyone wishing to comment on the proposed changes should submit these to lisa.easton@theaic.co.uk by close of business on Friday 22 April 2022.