Consultation Proposing Amendments to the Charities SORP (FRS 102) Now Open

The Charity Com­mis­sion for England and Wales (‘Charity Com­mis­sion’) and the Office of the Scot­tish Charity Reg­u­lator (OSCR) have issued a joint con­sulta­tion on pro­posed amend­ments to the Char­it­ies State­ment of Re­com­men­ded Prac­tice (FRS 102) (‘Char­it­ies SORP FRS 102) fol­low­ing recent amend­ments to UK ac­count­ing stand­ards.

SORPs are in­ten­ded to sup­ple­ment ac­count­ing stand­ards and other legal and reg­u­lat­ory re­quire­ments to reflect trans­ac­tions or cir­cum­stances that are unique within the char­it­ies sector.

The prin­cipal amend­ments pro­posed to the Char­it­ies SORP FRS 102 that have an impact upon the fin­an­cial state­ments are:

• The in­tro­duc­tion of an ac­count­ing policy choice for en­tit­ies that rent in­vest­ment prop­erty to another group entity.
• The cla­ri­fic­a­tion of the ac­count­ing treat­ment for pay­ments by sub­si­di­ar­ies to their char­it­able parents that qualify for Gift Aid.
• The cla­ri­fic­a­tion of the re­quire­ment for com­par­at­ives for dis­clos­ures re­quired by the SORP.
• The in­tro­duc­tion of a re­quire­ment for a net debt re­con­cili­ation to be pre­pared as a note to the state­ment of cash flows.

The con­sulta­tion closes on 4 April 2018.

SORP In­vit­a­tion to comment 

Draft SORP FRS 102 Update bul­letin

For further information on Charity SORP accounting please contact Lesley Malkin