SORP Definition

GLOSSARY

What does SORP mean?

Statement of Recommended Practice on Accounting and Reporting.

The Charity Commission has published a SORP which applies to charities generally unless a more specific SORP applies. The SORP provides recommendations for accounting and reporting, including recommendations as to how accounting standards should be applied in the context of particular sectors and how to account for sector specific transactions.

View the related practice notes about SORP

Accounting rules for charities

Accounting rules for charities FORTHCOMING CHANGE: The Charities Act 2022 (CA 2022) received Royal Assent on 24 February 2022 and the plan, as set out in Charities Act 2022: implementation plan is for its provisions to come into force in three defined groups over three stages, on 31 October 2022, on 14 June 2023 and in ‘early 2024’. For a summary of the provisions in CA 2022 which have been implemented so far, see: Charities Act 2022: information about the changes being introduced. CA 2022 implements the majority of the recommendations from the 2017 Law Commission report, ‘Technical Issues in Charity Law’. For a summary (as at 9 April 2021) of the recommendations that have been accepted, see News Analysis: Government response to Law Commission report ‘Technical Issues in Charity Law’ Of particular relevance to this Practice Note, the government accepted all proposals in relation to financial thresholds, specifically the Law Commission’s recommendation that the financial thresholds in the Charities...

Pensions accounting for employers and schemes

Pensions accounting for employers and schemes Contributed by Peter Westaway of Deloitte LLP and reviewed by Martin Hooper of Barnett Waddingham FORTHCOMING DEVELOPMENT: In March 2021, the International Accounting Standards Board (IASB) published papers proposing to replace the prescriptive disclosure requirements in IAS 19 with a high-level, catch-all disclosure objective which is intended to result in more decision-useful information in financial statements. Consultation closure: 12 January 2022. For further information, see: IASB press release — March 2021 and Exposure draft. THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED BENEFIT SCHEMES Pensions accounting can be complex, especially in group arrangements where a number of entities participate in a scheme. The purpose of this Practice Note is to discuss, at a high level, pensions accounting for UK employers and schemes. Company reporting frameworks In the UK, companies will report under one of the following frameworks: • International Financial Reporting Standards (IFRS), where International Accounting Standard 19 (IAS 19) governs employers’ accounting for defined benefit pensions • FRS 101—the...

Discover our 20 Practice Notes on SORP

Corporate weekly highlights—23 May 2024

This week's edition of Corporate weekly highlights includes news of updated government guidance on powers under the National Security and Investment Act 2021, publication of Takeover Panel Bulletin 7 on offeror intention statements and publication of the FCA’s Primary Market Bulletin 49. It also contains news of updated guidance on enforcement powers in relation to the Register of Overseas Entities and a DBT consultation aimed at reducing the burden of corporate reporting on medium-sized companies.

CCAB issues eighth addition of SORP Accounting by Limited Liability Partnerships

The Consultative Committee of Accountancy Bodies (CCAB) has issued the eighth addition of the Statement of Recommended Practice (SORP) Accounting by Limited Liability Partnerships (LLPs). The SORP sets out observations and recommendations on the accounting treatment for certain provisions in an LLP’s membership agreement, including a member’s remuneration and participation rights. The SORP will be effective for periods commencing on or after 1 July 2024 with early adoption permitted.

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