05 February 2025 
Joni Rhodes, BUFDG Projects & Development Manager
Following amendments to FRS 102 by the Financial Reporting Council (FRC) in March 2024, designed to enhance the quality of financial reporting in the UK and Ireland, work has been underway on the development of a new Statement of Recommended Practice for Further and Higher Education.
Members of BUFDG's Financial Reporting Group formed a Technical Working Group to act in a technical advisory capacity to the SORP Board as the SORP-making body recognised by the Financial Reporting Council. BUFDG are being supported by KPMG’s Accounting Advisory Services team to coordinate the development of the new FEHE SORP, which will have an effective from date of 1 January 2026 and mean adoption for the 2026/27 financial year for most.
The proposed SORP has undergone an extensive development process, and many across the sector have contributed. The Financial Reporting Council has approved the release of the Exposure Draft, along with the launch of a 12-week public consultation.
Comments are invited to be submitted by midday on Wednesday, 30 April 2025.
Following the completion of the public consultation exercise, the Financial Reporting Group will review and make recommendations to the FEHE SORP Board, which will consider all responses and agree any recommended revisions before submitting the final SORP 2026 document to the Financial Reporting Council for its consideration. Subject to approval of the Financial Reporting Council, the Board anticipates that a final version of the SORP will be published in August 2025. Any change to this timeline will be communicated widely.
Following consultation and the finalisation of the new SORP, the Financial Reporting Group 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 FEHE SORP Exposure Draft can be found on the BUFDG SORP Knowledge Hub.
