Statement of Recommended Practices (SORPs) interpret accounting standards and provide recommendations on financial reporting for particular industry segments, such as the housing association sector, to which the general rules don’t easily apply.
What is the housing SORP?
The Housing SORP: 2018 update applies to all registered social housing providers in the UK and provides essential guidance on, and interpretation of, accounting standards for the sector.
The Financial Reporting Council (FRC), the UK accounting standard setter, subcontracts the development of the housing SORP collectively to the National Housing Federation, Community Housing Cymru (CHC), and the Scottish Federation of Housing Associations (SFHA).
In practice, the development of the housing SORP is overseen by a representative group, the SORP Working Party, which is facilitated by the Federation. The SORP Working Party follows the FRC‘s code of practice for the production and issuing of SORPs.