The Charities SORP is approved for release
From 1 January 2015 UK GAAP (Generally Accepted Accounting Practice) will be changing as a suite of new financial reporting standards, namely FRS100, 101 and 102 and FRSSE 2015, come into effect. To coincide with this there was a need for a new charity SORP which would reflect the changes made to UK GAAP and would provide further guidance to charities applying these new standards.
The Charity Commission, the Office of the Scottish Charity Regulator and the SORP committee worked in collaboration to develop a new draft SORP and this was approved for consultation by the FRC in May 2013. Following this consultation process a draft SORP was made available on-line in early 2014 and on the 22 May 2014 the FRC approved the new SORP for publication.
Unlike SORP 2005 which was applicable to all charities preparing accounts on an accruals basis regardless of which other accounting standards they were applying the new SORP is actually two new SORPS. Going forward there will be a SORP for FRS102 and a SORP for FRSSE, both of which will also take effect for financial years beginning on or after 1 January 2015.
It is anticipated that the new SORPs will be available online in July/August 2014 with hard copies being available later in the year and we will keep clients updated through bulletins and our seminar as more information is released.