Statement of Recommended Practice: Financial Statements of Charities

The Statement of Recommended Practice (SORP) for Charities provides guidelines on how charities should prepare and present their financial statements. It ensures transparency, consistency, and accuracy, allowing trustees, donors, and the public to understand a charity’s financial health and how funds are used. The SORP covers areas such as reporting income, expenses, assets, and liabilities, and emphasizes clear disclosures. Following these standards helps charities demonstrate accountability and build trust, making financial information meaningful and comparable across different organizations.