Statement of Recommended Practice - or SORPs - are sector-driven recommendations on financial reporting, auditing practices and actuarial practices for specialised industries, sectors or areas of work, or which supplement FRC standards and other legal and regulatory requirements in the light of special factors prevailing or transactions undertaken in that particular industry, sector or area of work that are not addressed in FRC standards.
The Housing SORP 2014 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 (the 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 NHF. The SORP Working Party follows the FRC‘s code of practice for the production and issuing of SORPs.