Latest changes to charities SORP

Further clarification to the Charities SORP (FRS102) was released in October 2018 following FRS102 Triennial amendments for small companies. The changes are effective from accounting periods starting on or after 1 January 2019, though early application is permitted in England and Wales.

The impact on the charity financial statements is as follows  –

1. The removal of undue cost or effort exemptions
2. The introduction of a description of a basic financial instrument
3. Statement of cash flow and the inclusion of reconciliation of net debt as a note to the statements
4. Gift Aid payments by subsidiaries to their charitable parents follows the tax effects to be taken into account at the reporting date provided it is probable that gift aid payment will be made in the following nine months.
5. Clarity of merger accounting for a charity activities transfer to a wholly owned subsidiary undertaking
6. More clarity on intangible assets to reduce the costs of compliance but still providing users more useful information about the business combination.

Trustees of the charity may wish to visit the link http://www.charitysorp.org/media/646449/update-bulletin-2.pdf for further details or speak to one of our not for profit adviser to discuss your charity.