New Charity SORPs

One of two new Statements of Recommended Practice (SORP) must now be used by all charities preparing accounts for financial years beginning from January 2015. One may be used by any charity (FRS SORP), whilst the other can only be used by charities that fulfil two of the following three criteria (FRSSE SORP):

• gross income not exceeding £6.5m
• total assets not exceeding £3.26m
• employs no more than 50 staff

The FRSSE SORP will not be substantially different to the previous version. However, those adopting the FRS SORP will have to provide new information, including:

• a statement of cash flows;
• ‘probable’ legacies;
• the number of employees earning £60,000 or more (in bands of £10,000); and
• employee benefits received by key management

For more information or to discuss your requirements contact one of our charity law solicitors today on 01895 207809 or email charities@ibblaw.co.uk.