FEHE SORP 2026 published

Revised Statement of Recommended Practice strengthens financial reporting across further and higher education

The revised Statement of Recommended Practice for Further and Higher Education (FEHE SORP) has been released, following approval by the Financial Reporting Council (FRC). Reflecting changes to UK accounting standards introduced by the FRC in 2024, the updated SORP provides a refreshed financial reporting framework designed to support all institutions and stakeholders across the UK’s further and higher education sectors. It will apply to financial periods beginning on or after 1 January 2026. 

The FEHE SORP 2026 responds to the latest updates to UK GAAP (Generally Accepted Accounting Practice in the UK), specifically the March 2024 amendments to FRS 102 issued by the FRC. These changes include the introduction of a new lease accounting model that aligns more closely with IFRS 16, requiring most leases to be recognised on the balance sheet, and new principles for revenue recognition that reflect performance obligations and timing of delivery - bringing the sector closer to the revenue recognition model found in IFRS 15. Development of the new SORP has been informed by extensive consultation, including a 12-week public comment period during which institutions, auditors, and other stakeholders were invited to provide feedback on the draft proposals.  

The FEHE SORP reflects the collaboration between further and higher education and regulatory bodies, sector representative bodies, and accounting practitioners to ensure that financial reporting remains transparent, relevant, and fit for purpose in an evolving regulatory landscape. Acting in a technical advisory capacity to the FEHE SORP Board and Universities UK, BUFDG has led the development of the new SORP through its Financial Reporting Group and Technical Working Party.  The process has been supported by KPMG’s Accounting Advisory Services team, who provided expert technical input following a tender process in 2023.  

“Universities UK welcomes the publication of the new SORP, which will support our members in maintaining high standards of financial governance and accountability.”  
Vivienne Stern MBE, Chief Executive, Universities UK. 

“The publication of the new FEHE SORP marks a significant step forward in financial reporting for our sector. It reflects the complexity and diversity of our institutions while aligning with the latest accounting standards and best practices.” 
Karel Thomas, Executive Director, BUFDG. 

The updated SORP ensures that institutions across the further and higher education sectors can implement these changes consistently and with sector-specific guidance, supporting transparency, comparability, and compliance in financial reporting. The published FEHE SORP 2026 and supporting materials, including model financial statements and implementation guidance, are now available to download from the Universities UK website.

Visit BUFDG's SORP Knowledge Hub for info, support, and resources relating to implementation including Implementation Forum meetings, guides, and webinars.