A public consultation is now open, inviting charities and others with an interest or experience in the sector, to feedback on the updated version of the Statement of Recommended Practice: Accounting and Reporting by Charities (the SORP).
The SORP plays an essential role in setting accountancy standards for charities and has been updated to ensure it accurately reflects the changes introduced by the Financial Reporting Council to FRS 102 – specifically, how charities will need to recognise certain types of income and leases in their accounts.
Charities are encouraged to engage with the draft SORP and provide feedback to help shape the final version. The new SORP is expected to be published in autumn 2025, with an effective date of January 2026.
Beyond the key updates on income and leases aligning with FRS 102, additional changes aim to enhance the SORP’s usability and improve transparency for beneficiaries, donors, and the public on the stewardship of charity resources – these changes include:
- Introduction of 3 tiers based on income levels to ensure proportionate reporting, whilst also meeting the information needs of users;
- Advancing reporting in important areas such as impact reporting, reserves, going concern and volunteers; and
- Introduction of proportionate reporting for environmental, social and governance issues. The consultation on the ‘Exposure Draft of the Charities Statement of Recommended Practice: Accounting and Reporting by Charities’ will run from 28 March 2025 for 12 weeks.
The consultation on the ‘Exposure Draft of the Charities Statement of Recommended Practice: Accounting and Reporting by Charities’ will run from 28 March 2025 for 12 weeks.
