New Forest


Charities SORP FRS 102 – project update

On 27 March the Financial Reporting Council (FRC) published the long-awaited updated version of FRS102, the financial reporting standard that forms the basis of the rules which many charities are required to follow when preparing their annual accounts.

Not all of the changes made in the revised standard, which will come into force for accounting periods beginning on or after 1 January 2026, will impact heavily on charity reporting but there will be some significant changes. Perhaps the change with the greatest impact for charities will be the way operating leases are accounted for by lessees. Unless they are short term leases of less than a year in duration or of low value all leases will now need to be recognised on-balance sheet, with the lease commitment recognised as debt and a corresponding right of use asset. This could significantly impact the way in which a charity presents its financial position.

The changes introduced by the latest version of FRS102 will need to be reflected in an updated version of the Charities SORP. Drafting of the new SORP is well under way and a draft can be expected to be published for consultation soon.

Guidance: Home – SORP – CCEW (

Latest Tweets

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.