The charities Statements of Recommended Practice have been approved for publication by the Financial Reporting Council, the Charity Commission and the Office of the Scottish Charity Regulator announced today.
The Financial Reporting Council (FRC), which is the standard-setting body for UK accounting rules, approved the two SORPs at its board meeting on 22 May. The final documents will be published in the summer, possibly next month, the two regulators said.
One SORP will be compulsory for charities over the company audit threshold – most of those with incomes over £6.5m – which must follow a new financial reporting standard developed by the FRC, known as FRS 102.
Smaller charities will be free to follow this SORP or use the specialist SORP for smaller entities, which will apply an existing standard, the Financial Reporting Standard for Smaller Entities, which applies to charities below the audit threshold. The new standard takes effect for financial years beginning on or after 1 January 2015.
BWMacfarlane will be running a seminar on this topic shortly, to register your interest for this please contact Vicki Harper. (All charity clients will be contacted about the seminar closer to the time).