Technical Hub

Welcome to the latest edition of Technical Roundup.  In developments since the last edition, the Central Bank of Ireland has published its Climate Observatory which provides an annual update on climate-related financial and non-financial metrics using a combination of internal analytics and external data sources. The Financial Reporting Council has issued updated Guidance on the Strategic Report, intended to help prepare a strategic report in accordance with the Companies Act 2006. Read more on these and other developments that may be of interest to members below.  Financial Reporting The Financial Reporting Council (FRC) has issued updated Guidance on the Strategic Report. The guidance is intended to help prepare a strategic report in accordance with the Companies Act 2006 and has been revised following a comprehensive periodic review, with amendments made to reflect changes to the reporting framework (including changes to the disclosure requirements in the Companies Act 2006 relating to directors' reports and the UK Corporate Governance Code 2024). The FRC noted that it expects to make further amendments to the guidance to reflect any changes to reporting requirements resulting from the Department of Business and Trade's ongoing 'Modernising Corporate Reporting' programme. The FRC is hosting a series of Digital Reporting outreach events in March and May 2026, aimed at supporting improved understanding of digital reporting using XBRL and the UK taxonomies. The FRC has also issued guidance to support actuaries in dealing with historic amendments to pension rules. This has been published prior to the upcoming legislation to address the industry-wide uncertainty raised by the “Virgin Media v NTL Pension Trustees” case. The International Accounting Standards Board (IASB) has published its January 2026 update as well as an addendum to the November 2025 IFRIC update. The UK Endorsement Board has published its 2026 Work Plan. Auditing and Assurance  IAASA issued a consultation seeking stakeholders’ views on proposed narrow scope revisions to the International Standards on Auditing (Ireland) and the International Standards on Quality Management (Ireland). The proposed revisions reflect changes made to the international standards by the International Auditing and Assurance Standards Board (IAASB). The closing date for responses to the consultation is Friday 3 April 2026. The IAASB and International Ethics Standards Board for Accountants (IESBA) launched a joint global stakeholder survey inviting stakeholders worldwide to participate in the survey. This is the first step in developing each board’s Strategy and Work Plan (SWP) for the 2028–2031 period. The survey is open until 15 May 2026. Insolvency The Institute is hosting three in-person sessions which will provide an introduction to the new Creditor Voluntary Liquidation workbook. The workbook has been produced to assist Liquidators in complying with legislative and SIP requirements when conducting statutory meetings, reporting to creditors and approval of remuneration. The sessions will also cover compliance matters and will include potential issues and problems that can arise and how to avoid or best navigate these. It will also include some practical examples and a Q&A session. The sessions are targeted at professionals taking on insolvency appointments and acting as Liquidator, and those training or working in the insolvency sector looking to gain expertise in this area.   Each of these three-hour sessions are free to attend and will take place on the following dates: Tuesday, 3 March at 1pm CorkBook Now Wednesday, 4 March at 9am Galway Book now Thursday, 5 March at 9amDublin Book now Sustainability  Accountancy Europe has issued two factsheets regarding the Omnibus Directive outlining the changes occurring following the amendments of the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). These two papers aim to provide stakeholders with an overview of the key changes to sustainability reporting and assurance thereon, as well as due diligence requirements across Europe. Accountancy Europe has also issued its January 2026 Sustainability update. The European Financial Reporting Advisory Group (EFRAG) has launched a series of three educational videos to support SMEs in complying with the VSME disclosure requirements. These videos will assist SMEs in understanding the supporting guides released in December 2025. For readers who are interested in learning more about the VSME standard, EFRAG are continuing to add new material to their VSME Ecosystem which contains useful guides, templates, videos and case studies. EFRAG has also released a conference report from its conference “EFRAG unveils Draft Simplified ESRS: A European Milestone for Sustainability Reporting”. This includes recordings, slides and other conference materials. The Financial Conduct Authority has issued a consultation ‘CP26/5: Aligning listed issuers’ sustainability disclosures with international standards’. This proposes to replace current climate‑disclosure rules with proportionate new requirements that align reporting with international standards, ensure investors receive clear, consistent and reliable information on sustainability risks and opportunities and improve transparency for overseas issuers while reducing unnecessary duplication. The consultation closes on Friday 20 March 2026. The Department of Business and Trade (UK) (DBT) has published the outcome of its consultation on proposals for an oversight regime for assurance of sustainability-related financial disclosures. The UK government has stated that, in response to the feedback, it will move forward with plans to establish a voluntary, profession agnostic oversight regime for sustainability assurance in the UK. The FRC will be responsible for implementation and oversight, which in time, will be underpinned by legislation, and eligibility criteria will be developed, and guidance will be issued by them in due course. The register will be public, allowing registered practitioners to signal to the market they that have the relevant skills and experience for providing assurance services, as well as demonstrating their adherence to technical and ethical standards. The regime is designed for practitioners who primarily conduct sustainability assurance engagements to larger entities, typically those captured by the Companies Act, the UK Listing Rules (UKLRs), and the EU Corporate Sustainability Reporting Directive (CSRD). The Institute of Chartered Accountants Scotland (ICAS) and Chartered Accountants Ireland are partnering to host a webinar on Thursday 12 March - ‘Carbon Border Adjustment Mechanism: What you need to know’. Learn how CBAM currently operates and what its implementation is revealing in practice. Register here to attend. The European Commission updated its request to CEAOB on limited assurance sustainability standards asking the CEAOB to re-focus on the preparation of technical advice for the development of EU specific add-ons (and possible carve-outs) to ISSA 5000 to support the preparation of the Delegated Act adopting limited assurance sustainability standards. IAASA has released a new episode of its Insights podcast on Ireland’s first year of CSRD reporting. The Global Reporting Initiative (GRI) has released a new case study series entitled “ESG Reporting in Action”. This case study looks at how licensed tools and software are helping companies manage sustainability data. GRI has also issued its quarterly standards update. The International Sustainability Standards Board (ISSB) has issued its January 2026 update and podcast. Anti-money laundering The EU’s Anti-Money Laundering Authority (AMLA) announced that it will launch a data collection exercise to test and calibrate its risk assessment models for the financial sector. The exercise, set to start in March, is being conducted in close cooperation with national supervisors and the private sector. It represents a preparatory step towards AMLA’s direct supervision. The data collection will involve two groups of financial institutions including those that may be eligible for AMLA’s direct supervision, and a representative sample of entities likely to remain under national supervision. The changes announced by the European Union regarding its high risk jurisdictions list in December 2025 entered into force on 29 January 2026. This list highlights jurisdictions identified as having strategic deficiencies in their AML/CFT regimes. Members are reminded that they are obliged to carefully consider business relationships and transactions involving high-risk third countries through increased customer due diligence checks and control measures. The UK government’s sanctions list changed to a single list on Wednesday 28 January 2026. UK sanctions designations are now only detailed in the UK Sanctions List (UKSL), published by the Foreign, Commonwealth and Development Office. The Office of Financial Sanctions Implementation (OFSI) list has been withdrawn and is no longer in use. The UK government has published guidance for businesses and industry regarding this change. AMLA published its Single Programming Document (SPD) for 2026-2028. This document outlines priorities and timelines as AMLA moves from foundation to delivery. It contains AMLA’s work programme, provides a roadmap for the market, and gives an overview of scheduled mandates for 2026 and AMLA’s strategic objectives. Several supporting documents have also been published including the associated press release, an explainer on the SPD, and the list of 2026 mandates. Central Bank of Ireland (CBI) The Central Bank of Ireland (CBI) published its Climate Observatory, which provides an annual update on climate-related financial and non-financial metrics using a combination of internal analytics and external data sources. It includes an evidence-based view of climate science, progress on decarbonisation, and evolving financial risks. The CBI has also published a summary of the report. The CBI's Governor Gabriel Makhlouf published his latest Blog, which focuses on the role of the economics profession during times of major upheaval and how this affects the work of the CBI. Artificial Intelligence (AI) The Department of Enterprise, Tourism and Employment (DETE) published the General Scheme of the Regulation of Artificial Intelligence Bill 2026. The General Scheme includes details of the distributed model of competent authorities for the AI Act, which include leveraging established sectoral regulatory authorities. In addition, it includes a proposal to establish a new statutory independent body called the AI Office of Ireland, which will act as the Single Point of Contact and central coordinating authority for the implementation and enforcement of the EU AI Act in the State. The General Scheme also provides for the empowerment of Competent Authorities, and rules on penalties for infringement of the Act. Cybersecurity  The NCSC in the UK published a blog regarding guidance and tools to support cloud security posture management (CSPM) which is  a category of security tools designed to continuously monitor, assess and improve the security posture of cloud environments. The European Union Agency for Cybersecurity (ENISA) recently published its Single Programming Document for 2026-2028. This document outlines areas including multiannual planning, ENISA’s work programme for 2026, and multiannual staff planning. In addition, ENISA also published its stakeholder strategy for 2026-2028. Digital Operational Resilience Act (DORA) The CBI published information regarding the upcoming submission for financial entities to submit registers of information (RoI) in relation to all contractual arrangements on the use of ICT services provided by ICT third-party service providers in accordance with DORA article 28(3). Financial entities are required to submit their RoI, with a reporting date as of 31 December 2025, to the CBI via the Central Bank Portal during the window of 2 March to 31 March 2026. The CBI also updated the DORA frequently asked questions on its website. Financial returns for childcare core funding Core Funding is a grant scheme provided directly to Early Learning and Childcare service providers administered by the Department of Children, Disability and Equality (the Department). Under the Core Funding Partner Service Agreement, all service providers that had an active core funding contract during the 1 September 2024 - 31 August 2025 programme year (Year 3) must engage a qualified professional accountant to submit a financial return.  The Department requires that these financial returns must be submitted by a qualified professional accountant. The accountant can be an employee of the provider (if certain conditions are met) or an independent qualified accountant who holds a practising certificate (PC) and professional indemnity insurance. For the 2024/2025 programme year (Year 3), accountants will need to submit a trial balance prepared at site level using accruals-based accounting. Submission of the trial balance prepared using accruals-based accounting is a change for Year 3 given returns submitted in Years 1 and 2 used cash-based accounting. The Department is currently finalising the www.cfcrrs.ie portal website and supporting guidance that will be used by accountants to submit the financial returns. It is planned that a trial balance section will be added to the portal and this section of the portal will need to be used by accountants for submitting the trial balance based on chart of accounts and nominal codes guidance issued by the Department. Chart of accounts and nominal codes guidance documents for Year 3 have been added to Department's Hive website. The provisional date currently planned for making the portal available to accountants is end of February 2026 and it is planned that there will be a four-week window for accountants to submit the financial returns. Further information will be shared with members via the Chartered Accountants Ireland Audit and Assurance section of the Technical Hub in the coming weeks once all guidance documents have been finalised by the Department. Other News The Corporate Enforcement Authority (CEA) released a new podcast called 'Enforceable'. The 'Enforceable' podcast focuses on what company law is all about and why it's so important to the economy. The first episode features the Director of Legal and Policy, David Hegarty, talking about who the CEA is, and the interesting work that they do.  The first episode is available on Spotify, Apple, Acast and Amazon. The CEA also published its Strategy Statement for 2026 - 2028. The overarching focus of the Strategy, the CEA's second, is on increased impact and added value. The CEA proposes to achieve this overarching objective through three principal strategies, namely by optimising the delivery of effective enforcement, empowering stakeholders, and investing in CEA's employees.  The CEA has recently issued the February 2026 edition of the CEA newsletter giving updates on its activities and news of the last three months. The UK's Information Commissioner's Office (ICO) published an update provided to the UK Government regarding progress towards commitments to boost the UK’s economy and foster economic growth setting out what the ICO is doing in 2026 to further enable growth across the UK. The UK’s ICO published a statement regarding the next phase of the Data (Use and Access) Act (DUAA) implementation, commencing on 5 February 2026. This means that most of the remaining data protection provisions of the Act have come into force, except for the requirement for organisations to have a complaints procedure, which is due to commence on 19 June 2026 and some ICO governance provisions which will follow at a later date.  DETE published the General Scheme of the Data Bill 2025. The EU Regulation known as the Data Act (Regulation (EU) 2023/2854) came into force in EU law on 11 January 2024 and became fully applicable in member states on 12 September 2025. While many of the obligations apply directly, it is necessary to give effect to some of the Data Act’s provisions with national legislative measures. The General Scheme sets out how the Competition and Consumer Protection Commission (CCPC) and Commission for Communications Regulation (ComReg) are designated as competent authorities for the Data Act, and how they will execute their powers and functions under the Regulation. The CCPC is also designated as the ‘Data Coordinator’. The European Commission updated its FAQ document regarding the EU Data Act. Accountancy Europe responded to the European Commission's Call for Evidence on Better Regulation. The response focuses on the key principles needed for the EU’s better regulation agenda including evidence-based policymaking, proportionality and simplification including SME considerations, transparency, stakeholder engagement, and legal certainty. The Pensions Authority has published the text of a speech made by the Pensions Regulator to the National Pensions Summit in January 2026. The speech covered the current pensions situation in Ireland in early 2026, the outlook and issues for pension and the Pensions Authority’s priorities and plans for the coming year. For further technical information and updates please visit the Technical Hub on the Institute website.         This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

From the Professional Accountancy team…... In January 2026 ,Chartered Accountants Ireland hosted an online webinar with the Central Bank of Ireland ,the Irish Revenue Commissioners  and the EU Sanctions Helpdesk on  the essentials of EU sanctions compliance, the support available to Irish businesses, and how the EU Sanctions Helpdesk assists SMEs. Content included some  real-world case studies and  a questions and answers session  with the panel.   This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.    

From the Professional Accounting Team In October 2025, the eagerly awaited 2026 version of the Charity Statement of Recommended Practice (2026 SORP) was published. This update follows the publication of the September 2024 version of FRS 102 and a SORP consultation in mid-2025, which attracted over 100 responses. The 2026 SORP contains some significant changes to how charities will report on their activities compared to the requirements of the 2019 SORP. This article looks at some of the key changes that charities who apply the SORP will need to be aware of as they begin their journey of reporting under the new SORP. Why was the SORP updated? As the SORP provides guidance on how charities can apply FRS 102, the SORP-making body must always ensure that it remains consistent with FRS 102. As a result, an amendment made to FRS 102 will prompt the need for similar amendments to be made to the SORP. Following the publication of the September 2024 edition of FRS 102, the SORP making body has set about updating the SORP to incorporate the various changes contained in the new edition of FRS 102. The Charity SORP 2026 represents the most significant overhaul of financial reporting for charities in Ireland and the UK for many years (and certainly the most significant change since the introduction of FRS 102). It will reshape how charities explain their activities, report on their impacts, recognise income, and account for leases. Changes made to the Charity SORP 2026 A New Tiered Reporting Structure The previous edition of the Charity SORP included the concept of a “larger charity” (charities with gross income exceeding £/€500,000). For those charities classed as “larger”, there were additional mandatory disclosure requirements compared to their “smaller charity” counterparts, particularly in relation to the disclosures in their Trustees Annual Report. Charity SORP 2026 builds on this concept and introduces a three-tier system, designed to further scale disclosure requirements according to charity size. Depending on the tier in which they fall, charities will have increased or decreased reporting requirements across five specific modules. The new tiers are as follows: Tier 1: Gross income up to £/€500,000 Tier 2: Gross income more than £/€500,000 but less than £/€15 million Tier 3: Gross income of more than £/€15 million This new system will result in some charities requiring more details in their Trustee’s Annual Report. These requirements are intended to be proportionate to the size of the charity. A Refocused Trustee’s Annual Report One of the most visible differences between a set of financial statements which have prepared solely under FRS 102 compared to the Charity SORP is the presence of a Trustee’s Annual Report in the SORP. The Trustee’s Annual Report is a key component of a charity’s Annual Report and aims to provide a narrative account of what has happened in the charity during the year. In the 2026 SORP, The Module dealing with the Trustee’s Annual Report (Module 1) has been rewritten to improve clarity, narrative quality, and alignment with financial information. One of the key goals of the SORP-making body in doing this is to help charity trustees to understand the narrative reporting requirements placed on them and to encourage trustees to link the narrative information to the financial details in the accounts. The emphasis of the Trustee’s Annual Report is firmly on impact reporting — communicating not just what a charity does, but also the difference it makes. Some specific changes relating to the Trustee’s Annual Report contained in the updated SORP include. Prompt questions to encourage charities to explain the impact that they are making. Within Module 1, there are now some “prompt questions” which should help charities to tell their story in a meaningful way. The purpose of this is to ensure that the charity does not see the module as simply a compliance checklist but rather a means by which they can explain the difference they are making in a way that is unique to their specific charity. The questions focus on areas such as, objectives, activities undertaken, strategy, measurement of success and wider societal benefits. Sustainability Reporting. In recognition of the fact that stakeholders are increasingly interested in how charities are responding to environmental, social and governance issues, the 2026 SORP introduces some mandatory and encouraged disclosures which address how the charity is responding to, and managing, these issues. Only charities in tier 3 (i.e. gross income exceeding €/£15 million) are required to explain this, with charities in tiers 1 and 2 having the option to do so. Legacy income. Where a charity is in receipt of legacy income and this income has been recognised in the accounts prior to the resources being received, the impact of this must be disclosed. Disclosure of auditors and exemption from disclosing certain information. Under the 2026 SORP there is now a specific requirement to provide the name of the charity’s auditors, if applicable. Furthermore, where certain disclosure exemptions are availed of (such as omitting the names of the CEO, senior staff members etc) due to a risk to their personal safety, there is no longer a requirement to explain why such information has been omitted from the Trustee’s Annual Report. Where a charity is availing of this option, they should be aware of the relevant local legislative requirements and should consult their regulator where necessary prior to availing of this exemption. Reserves and Going Concern Modules 1 and 3 include some changes in relation to reserves and going concern. The 2026 SORP introduces further clarity regarding the treatment of reserves. First, there is now a specific definition of reserves included in the glossary. Consideration of reserves is also better incorporated into going concern assessments and where a charity has no (or negative) reserves, there is now a requirement to explain why it is still operating as a going concern. Furthermore, there is now a recommendation for charities to consider their reserves and going concern assessment when explaining their plans for the future. In order to align with the FRS 102 Periodic Review amendments, there are some amendments to going concern disclosures, including a requirement to disclose significant going concern judgements as well as confirmation that the charity has considered at least 12 months of information in making its going concern assessment. Some going concern disclosures which were a “should” disclosure under the 2019 SORP are now a “must” disclosure. Revenue Recognition In order to align the SORP with the updates to FRS 102, Module 5 (“Recognition of income including contract income and income from legacies and grants”) has been updated and restructured. The updated Module provides clarity on how to account for the various income streams from which charities benefit. Module 5 has been split into 2 sections. Section 1: Exchange transactions Section 2: Non-exchange transactions Most charities will be in receipt of income from either (or both) types of transactions, and it is important to identify these appropriately, as the resulting accounting treatment is fundamentally different for each income stream. Exchange transactions For exchange transactions, charities will be required to apply the five-step model of revenue recognition whereby the transactions will go through the new model which has been derived from IFRS 15 Revenue from Contracts with Customers. The SORP includes guidance at each step of the process to help charities in applying the requirements. The five-steps of revenue recognition are: Step 1- identify the presence of a contract with a third party Step 2- identify the performance obligations in the contract Step 3- determine the transaction price Step 4- allocate the transaction price to the performance obligations in the contract Step 5- recognise income when or as a charity satisfies a performance obligation Charities who receive income from exchange transactions will need to bring these sources of income on the 5-step “journey” to determine the appropriate accounting treatment. In many cases, this will be a very straightforward exercise, with a clear path through each step. In some cases, charities will require a deeper consideration of each step. This might include, for example; A charity considering how many performance obligations exist in a contract with a customer and whether the series of goods/services are distinct. Consider a charity providing residential care services to individuals. If the contract with the customer includes additional goods and services beyond residential care services (such as meals, classes, medical sessions etc) then charities will need to consider the number of performance obligations in the contract and how these should be treated under step 2 of the model. Where a charity determines that it has multiple performance obligations in a contract, it must then allocate the transaction price to the performance obligations in the contract. This might involve estimation techniques if there are no observable standalone prices for that performance obligation. A charity will need to consider whether it satisfies its performance obligations over time or at a point in time as this will impact on the timing of revenue recognition. Non-exchange transactions For non-exchange transactions, charities are not required to apply the five-step model and instead must recognise income based on when performance-related conditions are met. Under the SORP, Non-exchange transactions that don’t impose future performance-related conditions on the recipient are recognised in income when the resources are received or receivable Non-exchange transactions that impose future performance-related conditions on the recipient are recognised in income only when the performance-related conditions are satisfied When resources are received or receivable before the performance-related conditions are satisfied, a liability is recognised While it is written more generally for an FRS 102 audience, and not specifically for charities, the FRC’s Factsheet 10 – Revenue from Contracts with Customers is a useful source of further reading on revenue recognition and the five-step model. Leasing Another significant change in the Periodic Review of FRS 102, which now makes its way into the Charity SORP, is in relation to lease accounting, and specifically lessee accounting. The updated SORP removes the operating vs finance lease distinction for lessee accounting and instead requires that most leases (with some exemptions) will be required to be recognised as a right-of-use asset on the balance sheet, with a related liability also recognised for future lease payments. A new Module 10B has been added to the SORP to address this. While much of the theory in relation to the new lease accounting rules is addressed in FRS 102, the SORP provides guidance and commentary on what this might mean for charities and deals with some circumstances that might be more prevalent in charities. Some specific circumstances addressed in the SORP include: Peppercorn leases whereby a charity has leased an asset for nil or for a nominal amount Social donation leases where the lease payments are below market rent Rolling leases with no specified end date The appropriate interest rate that a charity should use to determine the present value of lease payments Special conditions imposed on a lease because the tenant is a charity The new module 10B includes a useful flow chart which should help users to navigate the rules and signpost readers to where they can find further information. Not all assets leased by charities will be required to be recognised as right-of use assets and there are two prominent exemptions which (if applicable to the charity) will allow the charity to expense the lease in the year it is incurred. The two exemptions are; Low value leases. While not providing monetary guidance on what constitutes a “low-value” lease, the SORP sets out some asset types which would not typically be expected to be “low-value”. Furthermore, the SORP also highlights some assets which might be expected to be classed as "low-value”. Short-term leases. Leases which have a term of 12 months or less at the commencement date may avail of the option to not recognise a right-of-use asset in relation to the lease and instead can expense the lease payments on a straight-line basis over the lease term. A lease containing a purchase option cannot be treated as a short-term lease. Charities applying the SORP who lease assets will need to familiarise themselves with the new requirements and how they might impact on their assets, liabilities and profitability. Some challenges which may be encountered include: Information gathering- can the charity locate all of its leases? Determining the lease term- is there a legally enforceable lease in place? Has the charity a lease in place which has simply “rolled forward”. Leases where the charity is not paying full market value- How should a charity account for the “donation” element of this? Systems for recording leases- Does the charity have a system in place which can capture and record the relevant information for lease accounting or is a new system required? How to present value the lease liability at the beginning of the lease term. The FRC’s Factsheet 11 – Lease accounting for lessees is a useful source of further reading on the new lease accounting rules in FRS 102. Statement of Cash Flows Under the previous version of the SORP, a charity was required to prepare a statement of cash flows when it had income in excess of £/€500,000. The 2026 SORP increases this threshold to £/€15 million (ie. a Tier 3 charity). This change means that only the very largest charities will be required by the SORP to prepare a cash flow statement, and this change is broadly consistent with the requirements placed on companies of a similar size under FRS 102. In making the change the SORP making body noted that the change will have a positive impact on charities as it will reduce the reporting requirements for smaller charities. However, it is important to note that the increased threshold does not override any existing requirement that a charity might have to prepare a statement of cash flows. So, for example, a charity who operates as a company may have income below £/€15 million but may still be required by company law to prepare a statement of cash flows because it does not meet the definition of a small entity. The exemption is also voluntary and a charity who is in tier 1 or 2 may choose not to avail of this and prepare a statement of cash flows. Get ready for implementation The 2026 Charity SORP is effective for reporting periods beginning on or after 1 January 2026, leaving charities with limited time to prepare. Charities who apply the SORP should act now to familiarise themselves with the new requirements, assess the impact on their reporting processes, and plan any updates needed for a smooth transition. By acting early, charities can ensure they are ready to implement the revised SORP and meet their reporting obligations.   This information is provided for information only and nothing in this article purports to provide professional advice or definitive legal/technical interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.