Statements of Recommended Practice (SORPs) supplement accounting standards and other legal and regulatory requirements to reflect factors prevailing or transactions undertaken in a specialised industry or sector. SORPs are issued by the sectoral body recognised for the purpose by the ASB.

Local Authorities

The CIPFA/LASAAC Joint Committee has recently completed its revision of the 2005 Code of Practice on Local Authority Accounting in the United Kingdom. The Board issued its statement on 15 June with the 2006 SORP published on 11 July. It has effect for financial years commencing on or after 1 April 2006. The SORP contains a number of significant changes, including the removal of the requirement to make a capital financing charge. It also includes improvements to the presentation of the primary statements which now include an Income and Expenditure Account, a Statement of Movement on the General Fund Balance and a Statement of Total Recognised Gains and Losses.

Registered Social Landlords

The National Housing Federation and the Welsh and Scottish Federations of Housing Associations have prepared an Invitation to Comment and Exposure Draft setting out proposals for a third edition of the SORP for registered social landlords.

The ITC provides a helpful overview of the proposed changes and sets out a number of questions for social landlords. The ITC and Exposure Draft are available via the National Housing Federation's web-site www.housing.org.uk with a threemonth comment period.

The Exposure Draft reflects changes in financial reporting standards and other accounting practice since the 2005 SORP Update. It also includes further accounting guidance in areas such as shared ownership sales, onerous contracts and accounting for mixed tenure development and has been restructured to remove any duplication and improve readability.

Charities

The Charity Commission and the Office of the Scottish Charities Regulator put forward proposals, which the Board has approved, to work together as a joint SORP making body for the Charity sector.

Further and Higher Education

Universities UK, on behalf of the further and higher education sector, is currently taking forward a review of the current SORP, which is dated July 2003. The aim is to publish an Exposure Draft of an updated SORP at the end of December 2006 with a three month comment period.