The SORP making body has released the Exposure Draft of the new SORP, along with a public consultation which runs until Friday 20 June.

The Exposure Draft SORP 2026 is based on the underlying accounting standard, FRS102, and reflects the changes to FRS102 that will come into effect for accounting periods that start from 1 January 2026. This means it will be effective for year ends from 31 December 2026 onwards.

The main changes to FRS102 impact the recognition of income from contracts, also known as exchange transactions, and the requirement to recognise operating leases on the balance sheet.

The new SORP also reflects changes brought about through an extensive engagement process with users of the SORP which started in 2021. One of the key objectives has to simplify the requirements and “Think Small First” to reduce the burden for smaller charities.

The tiered regime is intended to make the reporting and disclosures proportionate. For example, Tier 1 charities are able to use a simplified SOFA with generic income and expenditure headings rather than reporting by charitable activity. Tier 2 charities are relived of the requirement to prepare a statement of cashflows.

You can download a copy of the draft SORP, see a summary of the key changes to the SORP and view the Invitation to Comment on the SORP microsite at www.charitysorp.org.

Find out more about the exposure draft of the SORP and the consultation at our SORP 2026 webinar on Friday 25 April.