Charity regulators may replace the current Sorp with two separate sets of guidance when a new version is published this year, according to the head of accountancy policy at the Charity Commission.

The Charity Commission and OSCR – as the joint Sorp-making body – might introduce one Sorp based on the Financial Reporting Standard for Smaller Entities (FRSSE) and one based on FRS 102, rather than having one accounting standard covering both frameworks.

The Financial Reporting Council is currently working on updating the FRSSE, which would come in at around the around the same time as the new Sorp, and necessitate further revision shortly after it is published.

Writing exclusively for Charity Finance magazine, Ray Jones and Nigel Davies of the Charity Commission, said: “The Sorp consultation raised some significant concerns about how best to support the FRSSE option.”

And that: “A number of consultation responses favoured two separate Sorps.” And that: “Some respondents even suggested that the Sorp should rule out the FRSSE all together.”

They added: “While no firm decision has been made, there is a case for a two-Sorp approach, which would allow users to focus on the requirements of the particular standard they are using.”

Subscribers click here to read Decision time for the Sorp by Ray Jones and Nigel Davies