I am sure most Chief Executives and Charities are now aware that there is a new FRSSE SORP 2015 coming into effect for Charities for accounting periods commencing on or after 1st January 2015. Therefore, the first year ends will be 31 December 2015.
It is interesting to note that Parliament has not found time to revise the 2008 regulations and the 2008 regulations specifically refer that the accounts should be drawn up in accordance with SORP 2005.
The Charity Commission explain this issue by saying it is permissible to use the 2015 SORP without any legal basis.
However, they do overlook the fact that audit and examination reports are required to state whether the accounts have been prepared according to the law. If not, the reports must be qualified!
I am sure this issue will be resolved in due course, otherwise we will be dealing with the SORP 2015 once we get beyond 31 December 2015. Then in 2016 we have another specific Charity SORP. I will not go into this further at this stage but will keep you informed in due course.