Choosing the correct Sorpaid VT Charity template
 
Lost login?  
Sorpaid Home
Choosing the correct Sorpaid VT Charity template
December 28th, 2016     A+ | a-

Choosing the correct period.

The applicable SORP is based on the COMMENCEMENT date of the accounting period NOT the END DATE.

For accounting periods commencing BEFORE 1st January 2015, you use the 2005 SORP as modified in 2008. To all practical purposes, this is now redundant.

For periods commencing on or after 1st January 2015 but commencing before 1st January 2016, you use either the FRSSE SORP 2015 or the FRS102 SORP 2015 in its unmodified form. You can elect to follow the modified form of the FRS102 SORP on an early adoption basis, but there are implications (see below). These periods will become past the filing dates in most cases during the course of 2017.

For periods commencing on or after 1st January 2016, you use  the FRS102 SORP 2015 in the form modified by the SORP Bulletin in 2016. You cannot use the FRSSE SORP, as this has been withdrawn.

Making the right choice within a period.

There is ONLY a choice available for accounting periods commencing during 2015. There is no choice for periods commencing before 2015 or after 2015. You must use either the SORP 2005 (before 2015) and the modified FRS102 SORP for periods commencing in 2016 or later.

FRSSE or FRS102 in 2015?

A charity MUST use the FRS102 SORP if it does not meet the definition of a small company, regardless of whether it is a company or not. If eligible to do so, we would recommend that a charity uses the FRSSE SORP in preference to the FRS102 SORP. This will make the transition to the modified form in 2016 somewhat easier, and it will also have the benefit of some of the exemptions for smaller charities which are not available in the unmodified FRS102 SORP, but are available in the modified form.

Early adoption of the modified FRS102 SORP for periods commencing in 2015

Early adoption should be very carefully thought through, particularly in England & Wales. The modified version changes the definition of small charities. In the unmodified version that applies for 2015, smaller charities are defined as those not subject to statutory audit. In the modified version, small charities are defined as those with gross income below £500,000. This means that a charity in England & Wales with income between £500,000 and £1m would be small under the unmodified version and large under the modifed version. Because this has implications for disclosure requirements, we would normally recommend that such charities use the FRSSE SORP 2015 for accounts commencing in 2015 and then migrate to the modified version of FRS102 for the accounts commencing in 2016. There are also some changes in the modified version relating to the mandatory accounting treatments that should be followed.

 

← Older Post News Archive Newer Post →
 
Products For
Product Ranges
Submit Enquiry

Please leave this field empty.

 
Get in Touch
0871 288 2391    info@sorpaid.com

Acomb Grange, Grange Lane, York. UK. YO23 3QZ

Click for Larger Map

© 2015 Chartmain Services Ltd t/a Sorpaid | Company Reg No : 07217558 | Registered in England
About us | Legal, Copyright & Privacy | Terms & Conditions | Delivery & Returns | Home
Payments Powered by Worldpay - All Major Credit and Debit cards accepted