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.
Guidance note 2021
The FEHE SORP Board have drafted a guidance note.