The Update Bulletin 1 was issued early in 2016 and allows for small charities, those with income under £500,000 to exclude a statement of cash flows when preparing accounts under the SORP 2015 (FRS 102).
The Bulletin is effective for accounting periods beginning on or after 1 January 2016 with early adoption permitted for accounting periods beginning on or after 1 January 2015 except where prohibited by regulations or charity or company law. It also updates the:
- measurement basis of the carrying value of stock held for distribution at no or nominal consideration and
- maximum period over which goodwill and other intangibles can be amortised from five to ten years.
The changes cannot be ‘cherry picked’ and thus if you want to early adopt the Bulletin then you must adopt all of the changes.
Charities operating in Scotland (including cross border charities) are prohibited from early adoption.
Read the Bulletin now for more information.