Charity SORP Consultation

The joint SORP-making body for charities has issued draft SORP Update Bulletin 2 for consultation. The draft Update Bulletin proposes a number of changes to the Charities Statement of Recommended Practice (FRS 102) to reflect amendments made to UK accounting standards published by the FRC in December 2017.

It is intended that amendments that seek to clarify SORP (FRS 102) application in line with the original drafting intention of FRS 102 are applied immediately after the Update Bulletin is finalised. These clarifying amendments affect the following areas:

  • the requirement to provide comparative information;
  • the removal of a SORP undue cost or effort exemption for depreciating assets comprising of two or more major components which have substantially different useful economic lives; and
  • clarifying when payments by subsidiaries to their charitable parents that qualify for gift aid are adjusting events occurring after the end of the reporting period.

Other proposed amendments reflect revisions to FRS 102 made in December 2017 and therefore carry a mandatory implementation date of reporting periods beginning on or after 1 January 2019, with early adoption permitted provided all amendments are applied at the same time. The consultation closes on 4 April 2018. It is anticipated the final version of the Update Bulletin will be issued in October 2018, subject to FRC approval.

If you would like to find out more on charity SORP consultation. Please feel free to email or give us a call on 01895 236335