Accounting

Transition from charities FRSSE SORP to charities FRS 102 SORP

For charity accounts beginning on or after 1 January 2016, there will be no option for charities to use the FRSSE SORP.  All charities must use the FRS 102 SORP.  The main differences under FRS 102 are:

• Certain accounting policies will need to be changed to comply with FRS 102.  Previous years figures will need to be restated for the changed policies
• The statement of cash flows is compulsory
• Gains or losses on investments are included in the net income or net expenditure figure
• An accrual for holiday pay is required
• More disclosures are required in the accounts, especially for financial instruments and related party transactions