Scotland's charity regulator the Office of the Scottish Charity Regulator (OSCR) has disapproved of the development of separate accounting regulations for the country's public benefit entities.
As a result of the Accounting Standards Board's attempt to converge UK accounting principles (GAAP) with international standards, public benefit entities such as charities and housing associations could be subjected to new regulations.
However, the OSCR has warned that any convergence process that does away with the existing 'one-stop-shop' guidance would be detrimental to the sector.
"It would damage the culture of transparency and accountability which we have sought to create and protect and which underpins the sector; in our view therefore these developments would be a retrograde step," OSCR said.
According to the organisation, the move could "divorce trustees from a real understanding of their responsibilities in relation to accounts".
The National Council for Voluntary Organisations launched a VAT helpline for charities this week, which is free to organisations with an income of less than £100,000.
