Charities SORP

Application guidance for charity accounting

About the SORP-making body

Each SORP-making body is approved by the Financial Reporting Council and is responsible for developing the Statement of Recommended Practice for its industry or sector in accordance with the FRC Policy on the development of SORPs: https://www.frc.org.uk/accountants/accounting-and-reporting-policy/uk-accounting-standards/statements-of-recommended-practice-(sorps).

The Charities SORP is one of seven approved SORPs. The Charities SORP-making body comprises:

  • The Charity Commission for England and Wales
  • The Office of the Scottish Charity Regulator
  • The Charity Commission for Northern Ireland

Adoption of the SORP is mandatory in the charity law jurisdictions in the UK but is currently voluntary in the Republic of Ireland. The SORP-making body is grateful for the advice and input offered by the Charities Regulator which has an observer on the Charities SORP Committee.

The role of the SORP-making body is as follows:

  • To develop and publish the Charities SORP
  • Decide the scope of the Charities SORP
  • Ensure the SORP is consistent with and in accordance with applicable accounting standards
  • Ensure the SORP is kept up to date with any changes to accounting standards and applicable changes in law and regulations
  • Have in place governance arrangements designed to lead to effective decision-making including a properly constituted Board and/or working party of the SORP-making body (what FRC term the standing groups)
  • Establish as necessary ad hoc groups to advise the standing groups on specific issues
  • Ensure FRC staff have observer status at meetings of the standing groups 
  • Ensure effective participation by stakeholders and have sufficient technical support. Stakeholder participation may occur throughout the SORP development process, and may be formal or informal
  • When developing or revising a SORP the SORP-making body shall determine whether consultation is required, and agree this with the FRC
  • Undertake an Annual Review of the SORP
  • Ensure any additional guidance supplemental to the SORP complies with the FRC Policy on the development of SORPs
  • Have records retention policies for consultation responses that comply with the General Data Protection Regulations

Support to the SORP-making body is provided under contract by the Chartered Institute of Public Finance and Accountancy which provides the SORP Secretariat. See the contracting process for more information.

Meetings of the SORP-making body.