FEHE SORP consultation is now open

The FRC is currently in the process of updating FRS 102, prompting a refresh of the Further and Higher Education (FEHE) Statement of Recommended Practice (SORP). The British Universities Finance Directors Group (BUFDG), which leads the drafting of the SORP, has launched its consultation process and is inviting feedback on proposed changes.

Key dates

The consultation is open for comments until midday on Wednesday, 30 April 2025. Responses can be submitted via an online survey hosted on the BUFDG website.

Why does feedback on the proposed changes matter?

The FEHE SORP impacts financial reporting for further and higher education institutions, and your input can help shape its future direction. All consultation responses will be published on the BUFDG website within 12 weeks of the consultation closing, and full records will be shared with the FRC.

What are the next steps following the consultation?

After the consultation closes, the FRC will review responses and make recommendations to the FEHE SORP Board.
The SORP Board will consider all feedback before finalising the SORP 2026 document.
The final version is expected to be published in August 2025 and will apply to accounting periods starting on or after 1 January 2026 (covering the 2026-27 academic year).

Are there any key areas of focus?

The FEHE SORP Board has highlighted specific areas where changes from current accounting practices may be significant or potentially contentious:

Leases
Revenue
Primary statements

However, respondents are encouraged to comment on any aspect of the proposed changes.

Who should respond?

The consultation is open to all interested parties, including:

Further and higher education institutions
Governors and trustees
Sector regulators
Accountancy bodies
Professional accountancy and audit firms
Government bodies and agencies
Funders and service providers

The SORP Board particularly values feedback from general users of financial statements.

Other considerations

Both full and partial responses are welcome, whether you’re addressing specific questions or offering general feedback. All responses will be published on the BUFDG and Universities UK websites unless respondents request otherwise. Personal data will be handled in accordance with UK data protection laws. Identifiable information shared publicly will include only your name, position, and organisation.

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.

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