A new version of the Statement of Recommended Practice (SORP), the framework for charity accounting and reporting, will come into effect for accounting periods starting on or after 1 January 2015.
In fact, there will be two SORPs for charities. One version will be based on the Financial Reporting Standard for Smaller Entities (FRSSE) and one on the Financial Reporting Standard (FRS)102 – the Financial Reporting Standard applicable in the UK and Republic of Ireland – which also comes into effect on 1 January 2015.
The FRS 102 version will have more disclosure requirements and is designed for larger charities but there are parallels between the two versions, which will run alongside each other.
Each charity will need to decide which version of the Charities SORP to use and the Charity Commission recommends that charities take expert advice to clarify which option is most appropriate for them.
At Milsted Langdon, we recognise that this is a significant decision for charities. Our charity specialists are ideally placed to assist charities in selecting the version of the Charities SORP that is right for them, as well as ensuring that accounts are compliant with the requirements of the new SORP from 1 January 2015.
To find out how we can help you, please contact us.