Charities SORP approved

On 22 May, the Financial Reporting Council (FRC) approved the new Charities Statements of Recommended Practice (SORP) for publication.

The FRC are required to review the Charities SORPs to ensure that:

  • They have been prepared in accordance with the FRC's Policy and Code of Practice on SORPs; and
  • They do not appear to contain fundamental points of principle that are unacceptable in the context of current practice or to conflict with an accounting standard.

The FRC Board considered and approved the SORP for the new Financial Reporting Standard (FRS 102) and the SORP for Financial Reporting Standard for Smaller Entities (FRSSE). The two SORPs are necessary to support charities implementing the new UK Generally Accepted Accounting Practice, which takes effect for financial years beginning on or after 1 January 2015.

The SORP-making body anticipates publishing the new SORPs on the dedicated micro-site during early summer.