Charity News: The Charity SORP

All charities across the UK who do not prepare receipts and payments accounts should adopt the accounting principles set out in the Statement of Recommended Practice for Accounting and Reporting by Charities (‘The SORP’) when preparing their financial statements. The SORP is based upon FRS102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, being the underlying reporting framework that underpins Generally Accepted Accounting Practice in the UK. Regular updates are required to ensure that The SORP remains consistent with FRS102 and any changing legislative requirements, and since The SORP’s initial release in 2014 there have been two Update Bulletins which have both been reflected in the second edition of The SORP, published in October 2019.

There are no changes to The SORP to report in this edition of Charity News, although two new Information Sheets have been published which are considered below. There is also a proposed change to FRS102 regarding accounting for operating leases which will be of relevance to charities which is discussed below. Readers are also reminded that in March the SORP Committee published guidance on the implications COVID-19 could have on charity reporting. The guidance sets out how to reflect the impact of the outbreak in the trustees’ report for issues such as a fall in fundraising income or changes in demand for the charity’s services, and how the charity is responding. It also addresses the accounts themselves, covering issues such as going concern, the impact on the measurement of provisions and the disclosure of post balance sheet events.

A copy of the guidance can be found using the link:

Our full Charity Newsletter can be found here.

For more information on our charity services please visit our website or contact Frank Harling on 01932 830664 or

About the author

Frank originally joined PKG in 2005 before it was acquired by Ward Williams in 2010.  Having started at PKG as a Trainee he qualified firstly as an Certified Accounting Technician, before moving on and becoming qualified with the ACCA.

Frank is based at our Uxbridge office as Corporate Services Manager. Frank manages a portfolio of both audit and non-audit clients in a range of different sectors and industries, as well as assisting with the running of the corporate services department.

He has extensive experience of providing Audit, Accounts preparation, Corporation Tax, VAT, CIS and Payroll. Frank also holds a solid experience with regards accounting and audit in a number of specialist areas, including charities, solicitors and pension schemes.

01895 236335