The Charities SORP (Statement of Recommended Practice) sets out how charities must prepare accruals accounts and their trustees' annual report. It applies the accounting standard FRS 102 to charities and adds charity-specific rules such as fund accounting.
What it requires
Accounts prepared under the Charities SORP look different from company accounts:
- a statement of financial activities (SOFA) in place of a profit and loss account;
- income and spending analysed between restricted and unrestricted funds;
- a balance sheet showing the funds of the charity;
- notes on trustees’ pay and expenses, staff costs and related parties;
- a trustees’ annual report.
Who has to follow it
Every charity preparing accruals accounts: all charitable companies, and other charities above the income limit for simpler receipts and payments accounts. A new edition applies to financial years beginning on or after 1 January 2026, with reporting requirements set in three tiers by the size of the charity.
In Tax Optimiser
HMRC has no iXBRL taxonomy for SORP accounts, so Tax Optimiser does not generate them. A CIO prepares its SORP accounts separately and attaches the signed PDF to its Corporation Tax return.
Read more: Corporation Tax for a Charitable Incorporated Organisation (CIO).