Bite Sized Blog – SORP FRSSE or FRS102

Welcome to Tait Walker’s blog series on the new Charity SORP, which follows our charity seminar giving an overview of the upcoming changes. We have also produced some accompanying bite sized guides – all of which are linked in our blog posts.

There is a change of standard in the world of accounting from the current ‘package’ of rules governing how Financial Statements are prepared, from UK GAAP to FRS102, moving towards International Standards of accounting. The change applies largely to accounting periods ending 31 December 2015, which will be the year ending 31 March 2016 for most charities.

Charities currently prepare their financial statements using the SORP 2005. Whilst there are disclosure exemptions available to small charities under the existing rules, there is only one SORP covering both large and small charities.

The SORP has been completely re-written – this revised rule book is called FRS102 SORP. The new rules are mandatory for large charities, however small charities have an option. They can follow FRSSE SORP, which has very little change compared to the existing SORP 2005 and incorporates only some of the new FRS102 changes.

Although smaller charities can choose to follow either FRSSE or FRS102, the standard setters are considering removing the use of FRSSE completely from 2017. This would mean that smaller charities who chose to apply the FRSSE SORP for their year ending 31 March would then have to change again at 21 March 2017.

Neither of the SORPs applying to small or large charities is a complete set of accounting rules for charities. It is necessary to refer back to the overarching accounting rules (FRS102) in order to understand the requirements.

Click here to read our bite sized guide on SORP FRSSE and FRS102.

For further advice regarding the new charity SORP changes, please contact Simon Brown on 0191 285 0321 or email

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