The Charity SORP making body has published the October 2025 edition of the Charity SORP. Statements of Recommended Practice (SORPs) are sector-driven recommendations on financial reporting which supplement the Financial Reporting Council’s (FRC) accounting standards. The Charity SORP provides guidance on how charities should apply FRS 102 and is mandatorily applicable for certain charities in the UK. In the Republic of Ireland, the SORP is not mandatorily applicable, however, some charities apply it voluntarily.
The SORP has been updated to reflect the changes made to FRS 102 as a result of the 2024 Periodic Review by the FRC. For charities using the SORP, the changes will be effective for reporting periods beginning on or after 1 January 2026.
Some key changes include:
- New reporting tiers, which set out different reporting requirements for charities who fall within each tier.
- New and enhanced disclosures for the Trustees' Annual Report.
- More guidance and required disclosures relating to going concern.
- Guidance on how to apply the FRS 102 5-step model for income received in exchange transactions.
- A new lease accounting module which explains the new leasing requirements introduced by FRS 102.
- An increase in the threshold at which a charity is required to produce a cash flow statement to £15 million (provided FRS 102 does not otherwise require a cash flow statement to be prepared).
- Updated guidance on accounting for social investments to provide clarity and consistency in reporting.
The SORP-making body has also prepared a summary document summarising the changes made in each module.
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