Choosing the right SORP

The Charity Commission and the Office of the Scottish Charity Regulator, as the joint SORP-making body for charities, have developed two SORPS, one to support the Financial Reporting Standard for Smaller Entities (FRSSE) and one to support the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).  

About the SORP

The Charities Statement of Recommended Practice (SORP): Accounting and Reporting by Charities provides guidance for charities preparing accounts on an accruals basis. In certain jurisdictions, the use of the SORP is mandatory under the applicable charity law and regulations for charities preparing their accounts on an accruals basis to give a ‘true and fair’ view.

Light bulbTo see if a SORP applies to your charity, answer the following question:

Does your charity prepare accounts on an accrual basis?