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The SORP 2015 Development

In 2009 the Accounting Standards Board, now subsumed into the Financial Reporting Council (FRC), published a consultation document Policy Proposal: Future of UK GAAP (August 2009) heralding the completion of its conversion programme towards all reporting being based on International Financial Reporting Standards (IFRS). Following this no fewer than six Financial Reporting Exposure Drafts (FREDs) where issued on setting out practical proposals on how IFRS-based reporting could be adopted in the UK for those not currently required to report under EU-adopted IFRS.


The SORP Board and its technical advisory group commissioned a number of research documents to inform the development of the SORP, recognising that the development of an IFRS-based SORP represented a more fundamental change than previously undertaken:

  • The Potential Impact of IFRS on Accounting for Further and Higher Education, BUFDG and PriceWaterhouseCoopers, April 2009
  • New FE and HE SORP – Scoping Document, KPMG, April 2012

The Scoping document set out the complicated regulatory landscape in which further and higher education institutions operate across four UK jurisdictions, the relationship between the role of regulators and the SORP Board and the rationale for maintaining a SORP. The document also provided a GAP analysis comparing the current SORP to proposed FRS102 and set out a plan to develop the SORP.

SORP Board Technical Advisory Group

The Boards technical advisory group is the BUFDG Financial Reporting Group. For the duration of the SORP development process the BUFDG FRG membership was expanded to include finance directors form Further Education colleges and to include four representatives from different professional accountancy firms. The group, along with KPMG, liaised with the Charity SORP Board to review points of interest and difference given that Charity sectors simultaneous development of its own IFRS-based SORP in response to FRS102.

Membership of the technical advisory group comprises:

The group created a small SORP Steering Group to oversee the project, meeting more frequently than the technical advisory group.

Professional Advice

The SORP Board engaged KPMG to assist it in the development of the new SORP. KPMG where managed on a day to day basis by the technical advisory group’s SORP Steering group.

KPMG ran a number of issue specific focus groups to tackle difficult topics and elicit sector viewpoints, as well as presenting at a number of BUFDG conferences.