This section of the BUFDG website relates to the Statement of Recommended Practice for Further and Higher Education (SORP), based on the financial reporting standard 102.
Statements of Recommended Practice (SORPs) set out current best accounting practice for specialised industries or sectors. The Further and Higher Education SORP combines the requirements of institutions of both further and higher education in the UK.
The most recent SORP is effective for financial periods beginning on or after 1st January 2019, and is based on the 2018 FRS 102 standard. Expand the section below to access the current SORP and accompanying resources.
Download the 2019 SORP from the Universities UK website
View Model Financial Statements - Jul 22- there are no updates to the MFS for this year, the 2021/22 updates remain valid for 2023/24.
Service Concession Arrangements guidance
Donations and Endowments guidance
Revenue, Gov't Grants and non-exchange transactions guidance
As part of the development of each SORP, BUFDG hosts workshops to help institutions understand the changes. BUFDG members can view the slides from the 2019 workshops here.
In March 2024, the FRC issued amendments to FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs. The amendments are designed to enhance the quality of UK financial reporting, and are accompanied by an impact assessment setting out the expected benefits and costs. The FRC's release begins the development of the new Statement of Recommended Practice for Further & Higher Education (FEHE SORP). Members of BUFDG's Financial Reporting Group have formed a Technical Working Group, and are being supported by KPMG’s Accounting Advisory Services team to coordinate the development of the new SORP, which will have an effective from date of 1 January 2026 and mean adoption for the 2026/27 financial year for most.
The FEHE SORP reflects the collaboration between further and higher education and regulatory bodies, sector representative bodies, and accounting practitioners. These key stakeholders are represented on the FEHE SORP Board, which is the SORP-making body recognised by the FRC for the purpose of producing the SORP. SORP-making bodies have a responsibility to act in the public interest when developing, maintaining and issuing SORPs. Through the Technical Working Group, BUFDG acts as the technical advisory group to the SORP Board, and is leading this work. If you would like to know more about the SORP 2026 project please do get in touch.
Expand the section below to view the project timeline.
All dates subject to change
Following FRC approval in January 2025, the SORP 2026 exposure draft was published on 5 February 2025 for the purposes of public consultation, along with additional guidance relating to the key changes in FRS 102 relevant to Higher and Further Education, and model financial statements for Higher Education Providers (see below).
Download the FEHE SORP 2026 Exposure Draft
Following finalisation of the new SORP post-consultation, the FRG intends to publish additional guidance relating to the key changes in FRS 102 relevant to Higher and Further Education, and model financial statements for Higher Education Providers. Draft versions of this guidance that are based on the exposure draft can be found below.
Public consultation is required when a new SORP is developed, ensuring the SORP-making body seek the views of stakeholders. The SORP-making body issued an ‘invitation to comment’ asking all interested parties to submit their views on the proposed SORP, during a period of 12-weeks between 5 February and midday on 30 April 2025. All responses will be published by BUFDG within 12 weeks of the consultation closing. Copies of consultation responses will also be hosted alongside SORP 2026 document on the Universities UK at the point of FEHE SORP 2026 publication. Records of this consultation will be held securely in line with FRC policy.
To receive ongoing updates on the development of SORP 2026, email sorp@bufdg.ac.uk with SUBSCRIBE in the subject. BUFDG members can ensure all updates are received by selecting SORP as an interest in their account preferences.
This webinar, hosted by the KPMG’s Accounting Advisory Services team, outlines the key changes in the forthcoming Statement of Recommended Practice (SORP). The webinar covered the most crucial updates, the implications of the changes and practical guidance on how to address them.
KPMG will be hosting a series of regional workshops for BUFDG members throughout May and June, exploring the new FEHE SORP in more detail through worked examples, interactive polls, and questions.
The Financial Reporting Group (FRG) together with the audit firms delivered their annual Financial Statements workshop in May 2024, which covered updates, best practice from the Financial Statement reviews, and an update from KPMG on how to prepare for the new SORP.
The Financial Reporting Council has issued an updated suite of factsheets on aspects of FRS 102. The updated factsheets follow the Periodic Review 2024 amendments to FRS 102 and other FRSs, and provide additional guidance to support stakeholder reporting in accordance with specific aspects of the new requirements.
View the factsheets here
There are no events planned at the moment.
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