Financial Reporting Council approves new Statement of Recommended Practice for Charities

The Financial Reporting Council (‘FRC’) has approved the new Statement of Recommended Practice for charities, reports the Charity Commission.

The new accounting standards, which will apply to financial years starting on or after 1 January 2015, were approved by the FRC at its board meeting on 22 May. The new Sorp documents will be published on the Charities Sorp website in the summer, possibly as early as July.

In addition to the Sorp for charities using the new FRS 102, (applicable to the majority of charities with incomes over £500,000), there is now a separate Sorp available to smaller charities working with the Financial Reporting Standard for Smaller Entities (FRSSE) that meet two out of the three requisite criteria:

  • annual income of less than £6.5m
  • total assets of less than £3.26m
  • fewer than 50 employees

The FRC’s board reviewed the new Sorp to ensure it was compliant with its own policies, current practices and with other accountancy standards.

The Sorps are set by a committee of experts including representatives from the Commission and the OSCR, which are the joint Sorp-setting bodies, as well as auditors, finance directors and academics.

You can read our guide to FRS102 here or by clicking the image below.

FRS 102 Guide

For more information about the Statement of Recommended Practice for Charities, please contact our charities experts or complete a quick enquiry form.

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