New financial reporting standard for charities published

FRS 102 replaces the UK Generally Accepted Accounting Practice and contains new rules for public benefit entities

A new financial reporting standard applying to all charities in the UK and the Republic of Ireland has been published.

The Financial Reporting Council yesterday issued the long-awaited FRS 102, which replaces the UK Generally Accepted Accounting Practice as the overarching standard governing charity accounts and those of most other UK organisations.

The new standard contains specific rules for "public benefit entities", a definition that covers charities as well as bodies such as universities and housing associations.

It sets out the requirements for producing financial statements, with standardised definitions of assets, liabilities, income and expenses. 

Roger Marshall, a board member of the Financial Reporting Council, described the 340-page document as "succinct and easy to digest and use". It replaced almost 3,000 pages of guidance in the old standard, he said.

Marshall, who is also chairman of the FRC’s accounting council, said: "FRS 102 modernises and simplifies financial reporting for unlisted companies and subsidiaries of listed companies as well as public benefit entities such as charities. The standard updates UK accounting to take account of evolving business practices."

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