The FRS 102, the proposed new financial reporting standard for all organisations in the UK and Republic of Ireland, will be published in the coming weeks.

The decision was taken at a Financial Reporting Council (FRC) board meeting yesterday to finally publish the new document online and in print following minor adjustments. The FRC have given a timeframe of "the next couple of weeks". 

Publication of FRS 102, the replacement for UK GAAP (Generally Accepted Accounting Practice), was first planned for October 2012, before being moved to February and then suffering a further delay when that month came.

CFG: 'Positive news for sector'

Katherine Smithson, policy and public affairs officer at CFG, described the news as very positive for the voluntary sector.

She explained to civilsociety.co.uk that FRS 102 being published now means that the sector is on track for a  consultation on the new charity Sorp (Statement of Recommended Practice) this summer.

“The Sorp, which is the main point of reference on charity reporting, is based on the UK GAAP and therefore has to be adapted to cover any new or changing requirements,” she said. “The Sorp is also influential on a national and international scale as an interpretation of reporting standards for not-for-profits, where the traditional financial reporting model of ‘profit and loss’ is a difficult fit.

“After the biggest overhaul in financial reporting standards in a long time we are likely to see a very different charity Sorp.”   

Smithson said that a timely consultation period is therefore critical to ensure that the interpretation is clear, is in line with wider sector views and that the Sorp maintains and further promotes high quality reporting in the sector.  

“CFG will be doing a lot of work over the summer to promote the consultation, support charities to respond and to get the best final product,” she added.  

Smithson expects that the new Sorp will now be published in early 2014, still leaving a year for charities to adjust to and digest the new document before it is officially put in place for accounting periods beginning on or after 1 January 2015 (early adoption is permitted).

 

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