Upcoming accounting changes charities need to be aware of

The Charities Statement of Recommended Practice (SORP) 2026 introduces significant updates aligned with changes to FRS 102. These apply to financial periods starting on or after 1 January 2026 and aim to improve proportionality, clarity, and transparency in charity reporting.

These changes include;

• A new three-tier reporting framework
• Operating leases to be recognised as right-of-use assets with corresponding liabilities on balance sheet
• Income recognition – new five step model
• Trustees annual report – expanded requirements
• Revisions to social investments, provisions and contingencies
• Other disclosure points and changes on the horizon

In our summary, we take you through the changes and how they may impact your charity.  Read.