Charities SORP

Application guidance for charity accounting

Charities SORP FRS 102 (Third Edition) – project update

On 27 March 2024, the Financial Reporting Council (FRC) published the periodic review of FRS 102.

The Periodic Review 2024 was completed in March 2024, following the FRC’s consultation. The principal effective date of the periodic review is 1 January 2026.

What this means for the SORP?

The drafting of the new SORP is well under way, and this can now be progressed based on the final FRS102 amendments. The new SORP will be subject to a 3-month consultation period which is anticipated to go live early in 2025. It is likely that the new SORP will be published no later than Autumn 2025 for an effective date of 1 January 2026.

Key changes that the periodic review is introducing relate to lease accounting and revenue recognition.

The SORP will reflect these key changes and other changes that the periodic review is introducing but charities and professional advisors should refer to the periodic review FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (frc.org.uk) in advance of the SORP being published. It is important that charities and professional advisors do this so that they are informed and able to understand what action may need to be taken in readiness for the changes. The FRC have published material on the key changes Financial reporting standards Periodic Review 2024 (frc.org.uk).

Further updates will be provided in due course.

Charities SORP Committee minutes and papers'

The Charities SORP Committee minutes and papers subsequent to 12 March 2020 are relevant to the development and drafting of the next Charities SORP. Charities should not treat this advice as being definitive for the production of the Charities SORP FRS 102 (Third Edition) which will be subject to due process including a detailed consultation.

See the Charities SORP Committee minutes and papers

SORP Aims and Principles and Committee pages updated

The SORP-making body has updated the Aims and Principles that will guide the drafting of the next SORP and Committee meetings have been updated to December 2021.

View the SORP Committee page for details

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