The Statement of Recommended Practice – Accounting and Reporting by Charities (SORP 2015) is now in force for accounting periods starting on or after 1 January 2015 More about the author.
The changes to the SORP stem from the new accounting framework FRS 102. The main changes to the new SORP are as follows:
There are now two SORP’s – Charities SORP (FRSSE) and Charities SORP (FRS 102). This is to reflect the two different accounting frameworks that apply to charities from 1 January 2015. Which SORP you use depends on individual circumstances.
SORP 2015 now uses a modular approach. This is designed to make it easier for charities to focus on those areas that particularly concern them.
SORP 2015 specifically uses the words “must”, “should” and “may” to make it easier to distinguish between accounting policies that are compulsory, recommended and suggested.
The Statement of Financial Activities (SOFA) has been simplified. The number of headings for income has been reduced from six to five, and the number of headings for expenditure has been shortened from seven to three.
The majority of the other changes to the SORP stem from FRS 102. Full details can be found on the Charity Commission Website
Should you require any assistance with the new charities SORP or the new FRS102 accounting framework, then please call Cheadles accountants in Stafford on 01785 254550.