SORP (FRSSE) compared to SORP (FRS 102)

Area

SORP (FRESSE)

SORP (FRS 102)

Trustees report

SoFA

• Retains columnar presentation
• Gains and losses on investment assets presented ‘below the line’
• Includes ‘exceptional’ and ‘extraordinary’ items

• Retains columnar presentation
• Gains and losses on investment assets presented ‘below the line’
• Additional presentation of ‘other gains and losses’
• Includes ‘material items’

Balance Sheet

• Common Format
• Uses old UK GAAP terminology
• Useful life of goodwill assumed to be five years unless it can be reliably estimated.
• Maximum useful life of goodwill presumed to be 20 years
• Properties occupied by group undertakings are fixed assets
• Offers an alternative approach to the FV of investments

• Common Format
• Uses new UK GAAP terminology
• Useful life of goodwill assumed to be five years unless it can be reliably estimated.
• Properties occupied by group undertaking are investments properties.
• Requires FV through P&L for investments
• Requires more disclosure to do with intangible fixed assets, investments, stock and liabilities.

Accounting policies

• Uses old UK GAAP terminology
• Permits use of ‘legacy’ accounting policies where appropriate (i.e. where FRSSE is silent, FRS 102 is not applied if there is already and existing accounting policy)

• Uses new UK GAAP terminology
• Old accounting policies have to be revised in accordance with the principles of FRS 102

Donated goods and services

• Identical approach except for donated fixed assets

• Identical approach except for donated fixed assets

Disclosure of staff remunertaion

• Additional disclosures
• Notably total key management personnel remuneration disclosures

Financial assets and liabilities

• Additional disclosures
• Different accounting for basic and other financial instruments