Statement of Recommended Practice
Recognised SORP-making bodies develop and maintain SORPs under the Financial Reporting Council’s policy. A SORP addresses sector-specific matters and does not replace the underlying accounting framework or applicable legal requirements. Identify the relevant SORP, entity, jurisdiction and effective period before applying it; a charity SORP is not automatically an IFRS requirement for every entity.
Worked example
A UK charity assesses whether the applicable charities SORP and underlying UK accounting framework apply to its accounts for the reporting period. It does not assume that the same SORP governs an unrelated company’s IFRS statements.
Common mistake
Treating all SORPs as global IFRS standards or applying a sector’s SORP without checking its scope and effective date.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Supporting | September 2026–June 2027 |
| ACCA | SBR | Supporting | September 2026–June 2027 |