Charities – Accounting for Income under the New SORP

Objectives

The Charities Statement of Recommended Practice (SORP) has been updated in line with the changes to FRS 102 and a wider sector review. Charities SORP 2026 will be effective for reporting periods starting on or after 1 January 2026.

One of the main changes is in relation to how charities will need to recognise income in their accounts. SORP’s Module 5 on Income Recognition has been largely rewritten and is now structured into two sections, dealing with ‘exchange’ and ‘non-exchange’ transactions.

The objectives of this webinar are to highlight the main changes in relation to accounting for income in Charities SORP 2026, and to explain the revised income recognition criteria. We will look at how to apply the criteria to different income streams that charities have, using practical examples. We will also consider the disclosures that are now required in relation to income.

Key Topics

• Exchange transactions e.g. contracts
• The ‘5-step model’ for recognising income from exchange transactions: theory and practice
• Non-exchange transactions
• Donations, legacies, grants and other key income streams
• Non-exchange components of a ‘social donation’ lease arrangement
• Donated goods and services
• Disclosures relating to income
• What charities can do to prepare for the changes

Who Should Attend 

Accountancy practitioners who would like a summary of the main changes within Charities SORP 2026 which relate to income.

People who have a responsibility for preparing SORP-compliant accounts for a charity

Trustees, especially Treasurers or other Trustees with a particular interest in or responsibility for the charity’s statutory Report and Accounts