SORP consultation – Update Bulletin 2
One of the principal roles of the SORP is to provide charity specific guidance to applying UK-Irish accounting standards when preparing a charity’s accounts. When changes are made to an accounting standard then these need to be reflected in the SORP.
The Financial Reporting Council has updated the FRS 102 accounting standard: http://www.frc.org.uk/getattachment/9be202ba-351d-4e38-9d09-1982cb20d666/Amendments-to-FRS-102-Triennial-Review-2017-(Dec-2017).pdf
The principal effective date for these amendments is accounting periods beginning on or after 1 January 2019, with early application permitted provided all amendments are applied at the same time. The only exceptions to this are the amendments relating to directors’ loans and the tax effects of gift aid payments, for which early application is permitted separately. Limited transitional provisions are also available. Changes are to be made by way of a second Update Bulletin to amend the Charities SORP (FRS 102).
The consultation on the draft Bulletin closes on 4 April 2018. The draft Bulletin only deals with changes resulting from the updating FRS 102. Although these changes are not up for review, feedback on how these are being applied in the SORP will be very helpful in finishing the writing of the Bulletin.