Joint SORP making body publish Update Bulletin to amend the Charities SORP (FRS 102)
The Charity Commission and the Office of the Scottish Regulator (the Joint SORP making body) released yesterday, a bulletin updating the Charity Statement of Recommended Practice (SORP) (FRS 102).
Some of the key changes detailed in the bulletin are highlighted below.
1. The SORP (FRSSE) is being withdrawn from 1 January 2016. All charities will now report under the SORP (FRS 102). Charities can choose to adopt the updated SORP (FRS 102) for December 2015 year ends.
2. There are some exemptions included for smaller charities, such as the need to produce a statement of cashflows.
3. Following the increase in the audit threshold for charities to £1m gross income, the update has provided a clearer definition of a larger charity, specifying for reporting purposes, a large charity is one with gross income of £500k.
4. Small amendments have been made to provide clarity around the accounting treatment and disclosure requirements for related parties, goodwill, donated goods, and mergers.
If you are interested in finding out more about preparing your accounts under the new Charity SORP (FRS 102), we will be holding a seminar for finance professionals in charities, on 26 February 2016. To register or for more information click here.
The update bulletin is available here. Should you have any questions, please do not hesitate to contact Anna Bennett, Charities Partner, or your usual haysmacintyre contact.