Following consultation, the Charities SORP Committee has announced that all charities are required to adopt a Statement of Recommended Practice ('SORP') based on the FRS 102 accounting standard. The change will apply to reporting periods beginning on or after 1 January 2016.
Previously there were two Charities SORPS; one based on the FRS 102 which is intended for mid-sized organisations which need an audit but are not publicly listed, the other based on the Financial Reporting Standard for Smaller Entities ('FRSSE'). The FRS 102 and FRSSE are national accounting standards set by the Financial Reporting Council (the 'FRC') and apply to all businesses in the UK. The FRC has decided to replace the FRSSE and the Charities SORP Committee consulted on whether to abolish their FRSSE option.
Full details of the charities SORPS and the changes are available here.