{"id":5387,"date":"2025-04-07T12:00:22","date_gmt":"2025-04-07T11:00:22","guid":{"rendered":"https:\/\/www.goodmanjones.com\/blog\/?p=5387"},"modified":"2025-06-05T13:52:52","modified_gmt":"2025-06-05T12:52:52","slug":"charities-sorp-2026-consultation-draft-published-whats-changing","status":"publish","type":"post","link":"https:\/\/www.goodmanjones.com\/blog\/charities-sorp-2026-consultation-draft-published-whats-changing\/","title":{"rendered":"Charities SORP 2026 consultation draft published: What\u2019s changing?"},"content":{"rendered":"<p>The long-awaited consultation draft of the new Charities SORP (SORP 2026) has now been released. You can access the full draft here: <a href=\"https:\/\/www.charitysorp.org\/invitation-to-comment\" target=\"_new\" rel=\"noopener\" data-start=\"343\" data-end=\"399\">SORP 2026 Consultation Draft<\/a><\/p>\n<p>Some of the key proposed changes include:<\/p>\n<ul class=\"\">\n<li>A new three-tier reporting regime based on income, each accompanied by differing levels of disclosure requirements:\n<ul>\n<li>Tier 1: Charities with income up to \u00a3500,000<\/li>\n<li>Tier 2: Income between \u00a3500,000 and \u00a315 million<\/li>\n<li>Tier 3: Income over \u00a315 million<\/li>\n<\/ul>\n<\/li>\n<li>Enhanced Trustees\u2019 Annual Report disclosures, including information on impact, use of volunteers, and sustainability. Charities in tier 3 will be required to report on environmental, governance, and social matters, while those in tiers 1 and 2 are encouraged to do so.<\/li>\n<li>Clarified guidance on income, with separate sections on exchange (e.g. contract income\u00a0\u2013 including the new 5-step revenue recognition model for income from exchange transactions)\u00a0and non-exchange transactions (e.g. donations and grants). The performance model remains mandatory for grant income recognition.<\/li>\n<li>New modules covering provisions, contingent liabilities and assets\u2014including accounting for funding commitments\u2014as well as lease accounting.<\/li>\n<li>New module on lease accounting following changes within FRS102, including guidance identifying leases, identifying short-term or low-value leases that may qualify for simplification, and guidance on nominal or peppercorn arrangements.<\/li>\n<li>Cash flow statements will no longer be required for charities with income under \u00a315 million (unless still required under <a href=\"https:\/\/www.goodmanjones.com\/blog\/frs102\/\">FRS102<\/a>).<\/li>\n<\/ul>\n<p class=\"\" data-start=\"1506\" data-end=\"1631\">As always, the detail matters\u2014and with changes of this scale, it\u2019s important for charities to review the proposals carefully.<\/p>\n<p class=\"\" data-start=\"1633\" data-end=\"1734\">The consultation remains open until 20 June 2025, providing an opportunity to engage and respond.<\/p>\n<p class=\"\" data-start=\"1736\" data-end=\"1845\">If you\u2019d like help understanding how these changes might affect your charity, don\u2019t hesitate to get in touch.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The long-awaited consultation draft of the new Charities SORP (SORP 2026) has now been released. You can access the full draft here: SORP 2026 Consultation Draft Some of the key proposed changes include: A new three-tier reporting regime based on income, each accompanied by differing levels of disclosure requirements: Tier 1: Charities with income up[&#8230;] <\/p>\n<div class=\"brown_button\"><a class=\"more-link\" href=\"https:\/\/www.goodmanjones.com\/blog\/charities-sorp-2026-consultation-draft-published-whats-changing\/\">Read More<\/a><\/div>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15,468],"tags":[],"class_list":["post-5387","post","type-post","status-publish","format-standard","hentry","category-charities-social-businesses","category-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Charities SORP 2026 consultation draft published: What\u2019s changing?<\/title>\n<meta name=\"description\" content=\"The long-awaited consultation draft of the new Charities SORP (SORP 2026) has now been released.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.goodmanjones.com\/blog\/charities-sorp-2026-consultation-draft-published-whats-changing\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Charities SORP 2026 consultation draft published: What\u2019s changing?\" \/>\n<meta property=\"og:description\" content=\"The long-awaited consultation draft of the new Charities SORP (SORP 2026) has now been released.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.goodmanjones.com\/blog\/charities-sorp-2026-consultation-draft-published-whats-changing\/\" \/>\n<meta property=\"og:site_name\" content=\"London Chartered Accountants Blog | Goodman Jones London Accountants\" \/>\n<meta property=\"article:published_time\" content=\"2025-04-07T11:00:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-05T12:52:52+00:00\" \/>\n<meta name=\"author\" content=\"Martin Bailey - Partner\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoodmanJones\" \/>\n<meta name=\"twitter:site\" content=\"@GoodmanJones\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Martin Bailey - Partner\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/charities-sorp-2026-consultation-draft-published-whats-changing\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/charities-sorp-2026-consultation-draft-published-whats-changing\\\/\"},\"author\":{\"name\":\"Martin Bailey - Partner\",\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/#\\\/schema\\\/person\\\/a94145e298b3c923033f7df15a903ea6\"},\"headline\":\"Charities SORP 2026 consultation draft published: What\u2019s changing?\",\"datePublished\":\"2025-04-07T11:00:22+00:00\",\"dateModified\":\"2025-06-05T12:52:52+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/charities-sorp-2026-consultation-draft-published-whats-changing\\\/\"},\"wordCount\":271,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/#organization\"},\"articleSection\":[\"Charities &amp; 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