Charities SORP FRS102 (second edition October 2019)

The second edition of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (2019).

The second edition of the Charities SORP (FRS 102) (2019) is based on current UK-Irish GAAP and supports the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in effect for reporting periods beginning on or after 1 January 2019.

Following the withdrawal of the Financial Reporting Standard for Smaller Entities (FRSSE) in 2015, the Charities SORP (FRSSE) can no longer be used for accounting periods beginning on or after 1 January 2016. For accounting periods beginning on or after 1 January 2016, all charities must use the Charities SORP (FRS 102) this includes the second edition.

This edition of the SORP incorporates those changes made by update bulletin one and two. It includes those updates which reflect changes in Accounting Standards and legislation subsequent to the issue of the Charities SORP (FRS 102) in 2014. It includes a Basis of Conclusions that provides a background to those changes made to the Charities SORP (FRS 102) since issue in 2014.

This edition therefore introduces a number of significant accounting policy and guidance changes including:

• a revised definition of larger charities
• the withdrawal of Charities SORP (FRSSE)
• the requirement for the preparation of a statement of cash flows by larger charities
• changes arising from clarifications to FRS 102, including those relating to:
  • the requirement for comparative information
  • component accounting
  • the recognition of gift aid payments made by a subsidiary to its parent
• Amendments arising from the Financial Reporting Council’s 2017 Triennial Review of FRS 102.

The Charities SORP (FRS 102) (2019) includes a flow chart to assist preparers with the accounting requirements for charity combinations and illustrative tables for the preparation of the statement of cash flows and accompanying notes.

For information on choosing the SORP for your charity you should consider the guidance on the Charities SORP website and, if necessary, take professional advice.

This publication is available in hard copy.

A PDF version can be downloaded from the Charities SORP website.