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Statements of Recommended Practice (SORPs)

SORPs in issue or proposed

 SORPs: Policy and Code of Practice (August 2013)

Statements of Recommended Practice (SORPs) are sector-driven recommendations on accounting practices for specialised industries or sectors which supplement accounting standards and other legal and regulatory requirements in the light of the special factors prevailing or transactions undertaken in a particular industry or sector. SORPs are not issued by the FRC, but by SORP-making bodies recognised by the FRC for that purpose.

To be recognised as a SORP-making body, a particular industry or sectorial body must meet a set of criteria set by the FRC and must agree to develop SORPs in accordance with the FRC's Code of Practice. This is set out in SORPs: Policy and Code of Practice.

An extant SORP must carry a statement by the FRC confirming, as appropriate, that the SORP does not appear to contain any fundamental points of principle that are unacceptable in the context of current accounting practice or to conflict with an accounting standard.

The Policy and Code of Practice also describes the role of the FRC in relation to SORPs. The table below sets out how this will operate within the current FRC structure:

Action Carried out by
Recognition as SORP-making body FRC Board on advice of Accounting Council
Statement on a SORP FRC Board or Codes & Standards Committee on advice of Accounting Council
Approval to publish ED of a SORP Accounting Council on advice of UK GAAP technical advisory group or Committee on Accounting for Public Benefit Entities, as appropriate
Limited scope review of a SORP UK GAAP technical advisory group or Committee on Accounting for Public Benefit Entities, as appropriate

SORPs and new UK GAAP

Information on SORPs and the new UK GAAP can be found here.
 

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