Following consultation, the Charities SORP Committee has
announced that all charities are required to adopt a Statement of
Recommended Practice ('SORP') based on the FRS 102
accounting standard. The change will apply to reporting periods
beginning on or after 1 January 2016.
Previously there were two Charities SORPS; one based on the FRS 102
which is intended for mid-sized organisations which need an audit
but are not publicly listed, the other based on the Financial
Reporting Standard for Smaller Entities ('FRSSE'). The FRS
102 and FRSSE are national accounting standards set by the
Financial Reporting Council (the 'FRC') and apply to all
businesses in the UK. The FRC has decided to replace the FRSSE and
the Charities SORP Committee consulted on whether to abolish their
FRSSE option.
Full details of the charities SORPS and the changes are available
here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.