The charity standard setters are consulting on significant changes to the Charity SORP, including leases, revenue recognition and ESG
The 12-week consultation sets out proposals for updates to the Charity SORP, Statement of Recommended Practice: Accounting and Reporting by Charities, to reflect changes to UK GAAP accounting rules after recent FRS 102 changes to the accounting treatment of leases and revenue recognition. The consultation runs to 304 pages.
The new SORP 2026 will require charities to account for most operating leases on the balance sheet. As a result, charities that lease assets, will see an increase in assets and liabilities on the balance sheet. There will also be changes to how a charity presents expenses relating to the lease in the statement of financial activities.
