Changes to charity accounting rules come into effect

Accounting rules for charities updated to reflect new revenue recognition and lease reporting requirements under Charities SORP 2026, and new income tiers

The Charity Commission has updated guidance to reflect the introduction of Charities SORP 2026, which applies to accounting years starting on or after 1 January 2026.

The reporting requirements in the new Charities’ Statement of Recommended Practice (SORP) are split between three tiers based on the charity’s level of income. A new section is included in this module to explain the criteria for each tier, how to report under the new tiering structure and interaction between the tiers in SORP and Companies Act thresholds.

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