Charities SORP

Application guidance for charity accounting


SORP consultation papers

We consulted on three different matters that affect the SORPs now in issue. The consultation closed on 18 September 2015.

1. Charities SORP (FRS 102)

Due to changes in UK-Irish Generally Accepted Accounting Practice the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) is to be amended. These changes affect a few specific accounting treatments. These changes will be put into effect for the Charities SORP (FRS 102) via an Update Bulletin. To find out more:

2. Replacement for the Charities SORP (FRSSE)

Charities SORP FRSSE cannot apply for reporting periods beginning on or after 1 January 2016 because the FRSSE is being withdrawn. A replacement solution is needed because the FRSSE standard will be withdrawn and will not apply for reporting periods beginning on or after 1 January 2016. Your views were sought on our proposal that all charities use the Charities SORP (FRS 102) for reporting periods beginning on or after 1 January 2016 with only larger charities required to prepare a Statement of Cash Flows.

3. A revised definition of ‘larger charity’ in the SORPs

Your views were sought on redefining ‘larger charity’ as any charity with gross income exceeding £500,000 or 500,000 Euro (Republic of Ireland only). This is important because more is asked of ‘larger charities’ in their reporting under the SORPs.