This section of the BUFDG website relates to the Statement of Recommended Practice for Further and Higher Education (FEHE 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 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 Financial Reporting Group, BUFDG acts as the technical advisory working party to the SORP Board.
The current SORP is effective for financial periods beginning on or after 1st January 2019, and is based on the 2018 FRS 102 standard. This SORP will cease to be effective from 1 January 2026. Expand the section below to access the 2019 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 2024/25.
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.
The FEHE SORP 2026 was published on 3 November 2025, following approval by the Financial Reporting Council (FRC). It applies to financial periods beginning on or after 1 January 2026, and will mean adoption for the 2026/27 financial year for most.
To assist practitioners in accounting under the provisions of the SORP, and explain and illustrate what is required, additional guidance has been published alongside Model Financial Statements. As well as updated versions of 2019 editions, new guidance has been released relating to key changes. The following documents were published on 3 November 2025 and are available to download from the Universities UK website via the following links:
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.
With technical direction from the Financial Reporting Group (a standing group of the FEHE SORP Board), BUFDG leads on the operational and technical development of the SORP and ensures sector-wide engagement. Universities UK provides secretarial support to the FEHE SORP Board, and is the publisher of the FEHE SORP and additional guidance materials. If you would like to know more about the SORP 2026 project please get in touch.
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 FRC's release triggered the development of a new FEHE SORP. Members of the BUFDG-led Financial Reporting Group formed a technical working party to advise the FEHE SORP Board, and were supported by KPMG’s Accounting Advisory Services team to coordinate the development of the new documentation. The FEHE SORP is a truly collaborative endeavour, and we are grateful to all involved in its development especially members of the FEHE SORP Board, Financial Reporting Group and Technical Working Party, sector specialist Peter Fielding, Universities UK, KPMG's Accounting Advisory Services team, the Association of Colleges and College Finance Directors Group, and the Financial Reporting Council.
Development of the new SORP has been informed by extensive stakeholder engagement. Public consultation is required when a new SORP is developed, ensuring the SORP-making body seek the views of stakeholders. The FEHE SORP Board 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 were reviewed in detail by the Technical Working Party, with recommendations made to the Financial Reporting Group and FEHE SORP Board. A consultation report including all responses and outlining the key issues raised and proposed changes to the SORP documents where appropriate, was published in June 2025. Records of this consultation will be held securely in line with the FRC's SORP policy.
Expand the section below to view the project timeline.
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. Among the key changes in SORP 2026 are a new lease accounting model, which brings the treatment of leases more in line with IFRS 16 by requiring most leases to be recognised on the balance sheet, and revised income recognition principles that better reflect performance obligations and the timing of service delivery, moving the sector closer to the approach set out in IFRS 15. The following resources may be useful for those involved in the implementation of FEHE SORP 2026.
This guide summarises the key areas finance teams need to know now, and the practical steps they can begin taking to get SORP-ready.
Throughout 2025 and early 2026, BUFDG members can attend this bi-monthly online forum to share ideas, questions, and practical steps for implementing the new FEHE SORP.
This guide provides a simplified overview of recent accounting changes to help those responsible for VAT and Corporation Tax assess potential impacts on their organisation.
Lease management software considerations for compliance with FRS 102 updates and FEHE SORP 2026
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.
The Financial Reporting Group (FRG) together with the audit firms delivered their annual Financial Statements workshop webinar in May 2025, which covered updates, best practice from the Financial Statement reviews, and updates on the new SORP.
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