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.
For further information on Charity SORP accounting please contact Lesley Malkin