Statement of recommended practice: accounting for further and higher education 2019 edition

Report
3 October 2018

Statement of recommended practice

Statement of Recommended Practice: accounting for further and higher education (effective for periods beginning on or after 1 January 2019)

This Statement of Recommended Practice (SORP) reflects the Amendments to FRS 102 – Triennial review 2017 – Incremental improvements and clarifications issued by the Financial Reporting Council in December 2017. It will be effective for financial periods beginning on or after 1 January 2019.

As previously, the SORP combines the requirements of institutions of both further and higher education throughout the United Kingdom, reflecting the collaboration between the key stakeholders – Further and Higher Education funding and regulatory bodies, sector representative bodies, and accounting practitioners – all of whom are represented on the FE / HE SORP Board.

The majority of the amendments introduced by the Triennial Review 2017 were editorial in nature and were intended to clarify rather than change the accounting treatment. The Amendments to SORP 2019 from SORP 2015 therefore generally follow a similar basis. As a result it is not expected that many institutions will experience substantive changes to accounting treatments currently adopted, although as with SORP 2015, practitioners will also be required to consult FRS 102 to understand the full accounting requirements. In addition to the amendments, there are changes to disclosure requirements which will also require to be adopted.

In preparing SORP 2019, the opportunity has been taken to incorporate the previous amendments set out in the FEHE SORP Guidance Note 2015, issued by Universities UK, in response to the 2015 amendments to FRS 102. In other areas, terminology has been more closely aligned with FRS 102.

SORP 2019 sets out the transition requirements for adoption of the SORP, including provisions on early adoption should institutions wish to adopt the requirements in 2018/19. More detailed guidance notes will be produced by BUFDG (www.bufdg.ac.uk) in early 2019.

News

students from above

Universities UK calls for urgent action on racial harassment in higher education

24 November 2020
UUK has published a new set of recommendations designed to decisively tackle racial harassment as part of efforts to address racial inequality in UK higher education.

Universities determined to review and prove value of degrees

16 November 2020
​Universities in England are developing a charter to help ensure they take a consistent and transparent approach to identifying and improving potentially low value or low quality courses.

Blog

Student working on a bike

Funding for adult learners will boost the UK's economic recovery

30 September 2020
UUK's Julie Tam takes a look at the prime minister's announcement of a lifetime skills allowance, and what it means for the economy, society, and individuals.

The grades u-turn caused a ripple effect throughout education – it could be catastrophic for unis

25 August 2020
From over-stretched finances to lack of space and facilities, universities are facing a perfect storm of problems.