Reminder - Charities SORP FRS 102 update Bulletin - early adoption is not permitted in Scotland
15 Mar 2016
The update Bulletin has been issued to amend the FRS 102 SORP due to changes in Accounting Standards and legislation. It applies to all charities preparing accrued accounts for reporting periods beginning on or after 1 January 2016 and should be read alongside the FRS 102 SORP.
One significant change is that the Update Bulletin removes the requirement for all charities to prepare a cash flow statement when preparing accounts under the FRS 102 SORP. This requirement now only applies to charities with income over £500,000.
Due to this exemption we have had a number of queries asking if the Update Bulletin can be adopted early. The answer is that early adoption is not permitted in Scotland. In Scotland, the Charities Accounts (Scotland) Regulations 2006 (as amended) ('the Regulations') refer to the specific SORP in issue and prohibit early adoption.
This means that where charities adopt the FRS 102 SORP there will be a cash flow statement required in the year starting in 2015.
One significant change is that the Update Bulletin removes the requirement for all charities to prepare a cash flow statement when preparing accounts under the FRS 102 SORP. This requirement now only applies to charities with income over £500,000.
Due to this exemption we have had a number of queries asking if the Update Bulletin can be adopted early. The answer is that early adoption is not permitted in Scotland. In Scotland, the Charities Accounts (Scotland) Regulations 2006 (as amended) ('the Regulations') refer to the specific SORP in issue and prohibit early adoption.
This means that where charities adopt the FRS 102 SORP there will be a cash flow statement required in the year starting in 2015.