The new version of the charities Sorp, which governs the way charities draw up their trustees' reports and accounts, is on the agenda for approval at tomorrow's meeting of the Accounting Council.

Following the publication in March by the Financial Reporting Council (FRC) of a new form of UK Generally Accepted Accounting Practice (UK GAAP) and the new reporting standard FRS 102, the Sorp has to be revised and updated by the Charity Commission and OSCR.  The two regulators are jointly recognised by the FRC as the charity sector's Sorp-making body.

Speaking today at a launch event for the new UK GAAP, Ray Jones, head of accounting policy at the Charity Commission, warmly welcomed the fact that "the special aspects of accounting for public benefit entities have now been embedded in reporting standards for the first time". This, he said, "shows that core accounting principles work for the charity sector, but in a different way".

The chairman of the Accounting Council, the successor body to the Accounting Standards Board which advises the board of the FRC on new developments in accounting and financial reporting, confirmed that his committee will be reviewing the proposed new Sorp at a meeting tomorrow.  

Roger Marshall told a large audience at the Institute of Chartered Accountants in London that the new Sorp is "a quality document", which appeared to suggest that his committee is likely to approve its issue for consultation with the sector.

Ray Jones said that, if cleared by the Accounting Council, he hoped that the revised Sorp would be issued to the charity sector for a four-month consultation, starting in July.  After making any changes following consultation, the document would then need to go back for final approval by the FRC board before going live – probably not before summer 2014.

FRS 102 applies to all entities drawing up accounts for periods beginning on or after 1 January 2015, unless they have to follow the international financial reporting standards regime that applies to listed entities, or unless they are very small.  

Although Jones believes that the vast majority of charities would qualify – because of their small size – to report under the terms of the Financial Reporting Standard for Smaller Entities (FRSSE), he urged charities to grasp the opportunity to report under the new FRS 102.

"I want to encourage charities to embrace this effective new standard," he affirmed.