Charities – Accounting for Leases 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 – as a result of section 20 of the revised FRS 102 - is in relation to how charities will need to account for leases in their accounts. SORP’s Module 10 has been split into two, and Module 10B specifically deals with the new lease accounting and disclosure requirements. In particular, for charities who are lessees, the distinction between operating and finance leases has been removed, so it is likely that charities with operating leases will now have to recognise those leases on the balance sheet.

The objectives of this webinar are to highlight the main changes to lease accounting in the revised Charities SORP. We will look at how these apply to charities which have leases, using practical examples. We will consider the lease disclosures that are now required, from a charity lessee as well as lessor perspective.

Key Topics

• Key terms used in FRS 102 and the Charities SORP which relate to leases
• Application of the new requirements
• Exemptions
• Navigating the new Module 10B in the Charities SORP
• Accounting treatment for leases previously treated as operating leases
• Impact on charities which are lessors
• Non-exchange components of a ‘social donation’ lease arrangement
• Disclosures relating to leases – lessees and lessors
• What charities can do to prepare for the changes
• Wider financial and governance impacts of the revised requirements

Who Should Attend 

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

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.