Charities may use the FRSSE based SORP if they meet 2 of the following 3 criteria:
- Gross income not exceeding £6.5m;
- Total assets not exceeding £3.26m;
- Employ no more than 50 staff.
For those that have a choice it is made even more difficult in that the SORP based on the FRSSE will have a very short life, as it is due to be reviewed by 2016. It is this, along with the differences that exist between FRS 102-based and FRSSE-based SORPs, that need to be considered.
To help with the assessment that needs to take place regarding the differences, the Charity Commission and OSCR have made available guidance that analyses the differences and similarities between the two SORPS.
Guidance has also been made available that:
- maps each paragraph of SORP 2005 to the relevant paragraph(s) of the FRS 102 SORP and explains when any particular requirements of the current SORP have not been included in the new FRS 102 SORP;
- sets out the more significant changes resulting from the new FRS 102 SORP when compared to SORP 2005.
