Geoffrey Cox

New Charities SORPs

On 16 July 2014 new versions of the Statement of Recommended Practice (SORP) were published and will apply to accounts of charities for financial years commencing after 1 January 2015. This has resulted in two versions:-

–        One based on a new Financial Reporting Standard known as FRS102. The FRS102 SORP.

–        One for smaller charities meeting the Companies Act definition of small, even if your charity is not a company. The FRSSE SORP.

A charity is considered small if it does not exceed two of the following criteria:

–        Gross income no more than £6.5m

–        Aggregate balance sheet total not more than £3.26m

–        Average number of employees no more than 50.

However by 2015 these limits may well have been increased.

Both SORPs will be available on the Charity Commission website and have adopted a modular format.

There will be very little change for charities adopting the FRSSE SORP. Although you should be aware that the FRSSE framework is currently being updated and a new FRSSE expected. It follows that in due course the FRSSE SORP will need to be updated.

The Charity Commission has produced a helpsheet that sets out the differences between the FRSSE SORP and the FRS102 SORP.

If you have any further queries about the new SORP and the FRSSE option please do not hesitate to contact Richard Miller or Geoffrey Cox, our charity specialists.