After quite a wait and lots of debate the Charities SORP 2026 has finally been published!

The new standard is effective for accounting periods beginning on or after 1 January 2026.

It confirms that charities will be tiered into three categories, with each tier having differing levels of reporting requirements:

• Tier 1 – those with gross income up to £500,000
• Tier 2 – those with gross income above £500,000 and up to £15m
• Tier 3 – those with gross income above £15m

As expected, the new SORP includes the changes to revenue recognition and lease accounting to keep charity accounting in line with FRS 102.  There are also details in respect of the enhanced disclosure required in the trustees’ report, with more reporting now required on how a charity is responding to and managing environmental, governance and social matters. It also confirms how gains or losses on Social Investments may be reported and how to deal with the donation of Heritage Assets.

Most smaller charities will see some relief in their reporting obligations including the requirement to produce a cashflow statement, so maybe at least one less page to read at the AGM.

Watch this space as we bring more details of the changes to you over the coming months.

The SORP and a summary of the changes can be found at www.charitysorp.org/

If you have any queries, please get in touch with your usual team member at Burgis & Bullock www.burgisbullock.com/contact-us/