The Charities SORP-making body has released a helpsheet to guide charities and their advisors on new lease accounting requirements. These requirements apply to charities that produce accruals accounts.
The new Charities SORP incorporates these lease accounting requirements, which stem from amendments made by the Financial Reporting Council to the UK financial reporting standard (FRS 102).
The helpsheet, developed with input from the Charities SORP Committee, is divided into three parts and includes practical examples. It aims to help charities determine if a lease exists, understand applicable exemptions, and correctly account for general, peppercorn, and social donation leases.
Amie Woods, Assistant Director of Accountancy Services at the CCEW and Joint Chair of the Charities SORP Committee, stated that the changes to lease accounting may be challenging for some charities and expressed hope that the helpsheet will support readiness. Laura Anderson, Senior Manager Higher Risk Cases and Quality Assurance at OSCR and Joint Chair of the Charities SORP Committee, encouraged charities to engage with the helpsheet to prepare for implementation.