Statements of Recommended Practice (SORPs)

Overview

Statements of Recommended Practice ("SORPs") are developed in the public interest and set out current best accounting practice. SORPS, issued by ‘SORP-making bodies’ are intended to supplement accounting standards and other legal and regulatory requirements to reflect transactions or circumstances that are unique within specialised industries or sectors.  SORPs are issued on subjects on which it is not considered appropriate to issue an accounting standard at the time. 

SORPs cannot be taken as authority to depart from the requirements imposed by accounting standards, nor to extend the scope of accounting standards to include entities or circumstances which are otherwise excluded from specific accounting standards or accounting standards in general.

To be recognised as a SORP-making body, a particular industry or sectoral body must meet criteria set by the Financial Reporting Council (FRC) and must agree to develop and maintain SORPs in accordance with the Policy on developing SORPs.  A SORP must carry a Statement by the FRC confirming, as appropriate, that the SORP does not appear to contain any fundamental points of principle that are unacceptable in the context of current financial reporting practice, auditing practice or actuarial practice, nor does it conflict with an FRC standard or undermine the FRC’s broader objectives.

The latest FRC policy on developing SORPs is available on the FRC website here.

Scope

SORPs exist for a range of specific entities and industries. More detail is given below. If a type of entity falls within the scope of a SORP, its financial statements should be prepared in accordance with FRS 102 and that SORP. 

Summary

The latest SORPS and their effective dates are detailed in the table below. 

Name Latest version Effective date (reporting periods beginning on or after)
Accounting and reporting by charities FRS 102       2019 1 January 2019
Accounting for further and higher education * 2019 1 January 2019 and *
Accounting by Limited Liability Partnerships (LLPs) ** 2021 1 January 2022
Accounting by Social Housing providers  *** 2018 1 January 2019 and ***
Financial reports of pension schemes 2018 1 January 2019
Financial statements of authorised funds **** 2014 1 January 2015
Financial statements of investment trust companies and venture capital trusts 2022 1 January 2022
In July 2021, the FE HE SORP Board published FE / HE SORP Guidance Note 2021 to reflect the Amendments to UK and Republic of Ireland accounting standards - UK exit from the European Union issued by the Financial Reporting Council in December 2020.  The guidance updates the 2019 edition of the SORP for the December 2020 amendments. The amendments made to the 2019 SORP by the guidance are applicable for accounting periods beginning on or after 1 January 2021. Early application is permitted as set out in paragraph 1.32 of FRS 102. For accounting periods beginning on or after 1 January 2021, the 2019 SORP must be read in conjunction with this guidance.
** In August 2023, the CCAB pub­lished an updated draft of its Limited Li­ab­il­ity Part­ner­ships (LLPs) SORP.  Com­ments were re­ques­ted by 27 October 2023.  It is proposed that the updated SORP would be effective for periods commencing on or after 1 January 2024.
*** In January 2022, the National Housing Federation issued Housing SORP Guidance Note 22 to update the 2018 SORP to reflect the amendments made to FRS102 for changes in UK company law following the UK's exit from the European Union. The amendments made to the 2018 SORP by the guidance are applicable for accounting periods beginning on or after 1 January 2021. For accounting periods beginning on or after 1 January 2021, the 2018 SORP must be read in conjunction with this guidance.
**** The May 2014 SORP was updated in June 2017.  

    Correction list for hyphenation

    These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.