The revised Charities SORP 2026 was released on October 31 2025, incorporating changes to the underlying FRS 102. Watch our on-demand webinar to understand the changes to lease accounting, income recognition and trustees’ reports and discover how your charity can start preparing.

The implementation date for SORP 2026 is for accounting periods beginning on or after 1 January 2026, so this will affect year ends from 31 December 2026 onwards (potentially earlier if a charity has a short accounting period).    

Our on-demand webinar explored the key areas that charities should start preparing for. The most significant changes for many charities will be the following:  

• Lease accounting – SORP 2026 requires recognition of the assets leased on the balance sheet as a ‘right of use asset’ with a corresponding liability reflecting the discounted value of the future payments. For charities with leased property and/or vehicles, this will be a significant change and will require significant work to prepare for implementation.  

• Income recognition – SORP 2026 introduces the five-step model for contract income recognition to match the timing of income recognition with progress on delivery of the contract. This will require a review of income streams to determine whether income is being recognised at the appropriate time. 

• Trustees’ report - the exposure draft introduces a three-tier structure with the tiers based on the level of income, and there are different requirements for each tier across nine areas. This presents a good opportunity to review trustees’ reports and the message they convey as well as ensuring compliance with the new requirements. At present, the tier thresholds are not directly linked to the audit threshold, and we hope that this is something which will be considered in the final version.

Watch our webinar on-demand