Researching Statements of Recommended Practice (SORPs)

The ICAEW Library has compiled this guide to help everyone to find the SORPs they need.

The Library enquiry team can also help ICAEW members, ACA students and other authorised users with requests for SORPs and related information. Library staff can consult print sources held in our collection on your behalf, and we can loan books and supply documents from our collection by email or post.

If you would like to know more about the information we can offer, please call us on +44 (0)20 7920 8620, email library@icaew.com or contact us through webchat.

Statements of Recommended Practice (SORPs) set out current best accounting practice for specialised industries or sectors in the UK. They are issued by industry and sector bodies and must meet criteria outlined by the Financial Reporting Council (FRC). As stated by the FRC, SORPs ‘supplement FRC standards and other legal and regulatory requirements in the light of special factors prevailing or transactions undertaken in that particular industry or sector that are not addressed in FRC standards. SORPs also address matters that are addressed in FRC standards, but about which additional guidance is considered necessary’.

 

Industry or sector bodies must meet the criteria set by the FRC to be recognised as a SORP-making body, and develop and maintain SORPs in accordance with its Policy on development. A 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 financial reporting practice, auditing practice or actuarial practice, nor does it conflict with an FRC standard or undermine the FRC’s broader objectives’.

New SORPs are first issued for public consultation as Exposure Drafts. This is also required when new interpretations are proposed to be made in a SORP. Other amendments may not require public consultation.

Other SORPs

There are also several SORPs covering aspects of audit and actuarial work:

• Statement of Recommended Practice – Practice Note 10: Audit of financial statements of public sector bodies in the UK
• Actuarial Statement of Recommended Practice 1: Financial Analysis of Social Security Programmes

Please note the focus of this Research guide is SORPs on accounting for specialised industries and sectors.

The first SORPs were issued in the 1980s. The Accounting Standards Committee developed and issued SORPs on pension schemes and charities during this period. It also ‘franked’ SORPs developed by bodies representative of certain industries or sectors.

Following the creation of a new Accounting Standards Board (ASB) in 1990, SORPs were developed and issued by industry and sector bodies recognised by the ASB for this purpose. SORPs were not ‘franked’ by the ASB, but carried a 'negative assurance statement' confirming there were no points of principle considered by the ASB to be contrary to current accounting practice.

In 2012, responsibility for SORPs and the recognition of SORP-making bodies came under the FRC.

There are currently SORPs for 7 industries or sectors. ICAEW Library provides information on these, including sources for the SORP and links to guidance, articles, books and other useful resources:

• Authorised funds
• Charities
• Further and higher education
• Investment trusts
• Limited liability partnerships (LLPs)
• Pension schemes
• Registered social housing providers

Over the years, SORPs for some industries or sectors have been withdrawn after being superseded by changes to accounting standards:

A Statement of Recommended Practice (SORP) relating to asset finance and leasing was issued by the Finance and Leasing Association (FLA) in April 2000. It was withdrawn following the introduction of FRS 102 in 2013.

Sources for the SORP

• Browse the Library's holding of the SORP

Further reading

• View a list of books and articles in the Library collection on the asset finance and leasing SORP

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Statements of Recommended Practice (SORPs) related to banking were issued by the British Bankers Association (now represented by UK Finance) and the Irish Banking Federation (now known as the Banking and Payments Federation Ireland). The first SORP was issued in 1990.

In January 2006, the BBA published A technical note on the status of the BBA's Statements of Recommended Accounting Practice (SORPs). The note states that ‘in essence, the BBA has concluded that for banks following International Financial Reporting Statements its SORPs have been superseded’.

On 31 December 2006 the following SORPs issued by the BBA were withdrawn:

• Contingent liabilities and commitments (1996)
• Derivatives (2001)
• Securities (1990)
• Advances (1997)

 

The BBA's SORP on Segmental reporting, issued in 1993, remained in place for non-listed entities reporting under UK accounting standards. It was withdrawn following the introduction of FRS 102 in 2013.

 

Sources for the SORPs

The Library holds copies of the above SORPs, together with previous editions issued by the BBA:

• Browse the Library's holdings of the banking SORPs (1990-2001)

• View a list of books and articles in the Library collection on the banking SORP

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Statements of Recommended Practice (SORPs) related to insurance were issued by the Association of British Insurers (ABI). The first SORP was issued in 1986.

The most recent SORP Accounting for Insurance Business, published by the ABI on 20 December 2005 and amended on 21 December 2006, was withdrawn on 1 January 2015 when FRS 103 Insurance Contracts became effective.

Sources for the SORP

Online sources

ABI Statement of Recommended Practice on Accounting for Insurance Business
Full text of the SORP issued by the ABI, as published on 20 December 2005 and amended on 21 December 2006.

Library collection

• Browse Library holdings of the insurance SORP (1986 - 2006)

• View a list of books and articles in the Library collection on the insurance SORP

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Statements of Recommended Practice (SORPs) related to oil and gas activities were issued by the Oil Industry Accounting Committee (OIAC). A number of SORPs were published from 1986 onwards relating to specific oil and gas industry accounting topics, which were consolidated into single Oil and Gas SORP in 2000.

In a notice published by the OIAC in October 2013 on The status of OIAC's Statements of Recommended Accounting Practice (SORP), it stated 'The SORP will no longer apply to any entity for accounting periods beginning on or after 1 January 2015 (the deadline for the application of FRS 100-102). However, the SORP is being retained below on the OIAC website as a reference document.'

Sources for the SORP

Online sources

Accounting for Oil and Gas Exploration, Development, Production and Decommissioning Activities
The full text of the most recent SORP, as issued by the OIAC in June 2001.

Library collection

• Browse Library holdings of the oil and gas SORPs (1986-2001)

• View a list of books and articles in the Library collection on the oil and gas SORP

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

• Accounting for specific sectors
  Books, articles and online resources covering SORPs, guidance and useful organisations across a variety of UK business and industry sectors.
• ICAEW Communities
  Information, insights, guidance and networking opportunities covering a range of industry sectors.
• Industry guides
  Guides to researching over 80 industry sectors, including links to market research reports, statistics, information on import and export, legislation, trade bodies and journals.
• Researching accounting standards
  Information on how to obtain current and historical UK accounting standards together with an overview of their history and development.