NEW Charities SORP Consultation: Have your say
5th June 2025
The SORP is the ‘Statement of Recommended Practice’ which outlines the accounting principles to be applied in Charity accounting.
The current SORP from 2019 has been updated, and the new version is now released in draft for response from charities, professional advisors and others who may wish to respond to the public consultation.
The draft includes changes to reflect the updates to FRS102 for Companies, particularly around how certain income streams are recognised as well as how leases are recognised in charity accounts. In particular the consultation is looking to ensure that these changes are taking into account the context applicable to charities.
They are also looking to restructure the process around assurance and how and when a charity is required to obtain an independent exam or an audit. One consideration is around increasing the thresholds for when a charity is required to have an audit – something that many of our clients have been keen to see, following the Companies Act thresholds increasing earlier this year, as well as to reduce the burden on charities.
The new SORP 2025 is expected to be published in Autumn 2025 and be effective for accounting periods commencing on/after 1 January 2026. The deadline to respond to the consultation is Friday 20 June 2025. The link for details and the two key probable changes to leases and revenue recognition can be found here: Home – SORP
Disclaimer - All information in this post was correct at time of writing.
