The Statement of Recommended Practice: Accounting and Reporting by Charities’ (‘the SORP’) has been updated following an extensive development process informed by the views of engagement partners and a sector specific SORP Committee.
In a press release from the joint SORP-making body, it details that
"The SORP has been updated to reflect changes introduced by the Financial Reporting Council (FRC) to FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland – and in particular to reflect changes to how charities will need to recognise certain types of income and certain types of leases in their accounts. The consultation is seeking views on how the revised requirements are explained in the context of charities. Charities are also encouraged to ready themselves for these two changes, the substance of which is already decided.
Improvements are also proposed in other areas that are within the discretion of the SORP-making body. These are to make the SORP more straightforward to navigate for charities, and to improve information for beneficiaries, donors and the public about how charity resources are stewarded. These proposed 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
- introduction of proportionate reporting for environmental, social and governance issues.”
The SORP-making body is now inviting comments on the draft as the feedback will help shape the final version. It expects that the new SORP will be published this autumn and be effective from January 2026.
Consultation on Draft SORP 2026
Consultation seminar
NICVA will be hosting a consultation seminar to examine the key changes in the draft SORP and to hear from Charities, and professionals who work with them, on any issues/concerns with implementing the new SORP.
- Thursday, 8 May - 10am to 11.15am in NICVA, Belfast
- Register here: SORP 2026 seminar | NICVA
