The new SORP has been developed by the CIPFA/LASAAC SORP Board and has effect for financial years commencing on or after 1 April 2008.

The SORP specifies the principles and practices of accounting required to prepare a Statement of Accounts which ‘presents fairly’ the financial position and transactions of a local authority.

The 2008 SORP includes a host of significant changes, in particular:

• a number of clarifying amendments have been made to Chapter 4 Financial Instruments arising from queries by local authorities on how the Chapter should be interpreted
• a new section on Area Based Grant
• amendments to Chapter 8 The Statement on Internal Control and the Statement on the System of Internal Financial Control to reflect CIPFA’s latest published guidance
• the section on Events After the Balance Sheet Date has been amended and extended to clarify how the date the Statement of Accounts is ‘authorised for issue’ should be interpreted in each jurisdiction
• amendments to clarify that the Cash Flow Statement can by prepared using either the ‘direct’ or ‘indirect’ method
• Appendix A Application of Accounting Standards has been updated for changes in accounting standards and UITF abstracts
• amendments to the Pension Fund Accounts section of Chapter 5 to implement the requirements of the Pensions SORP 2007

The SORP applies formally in Great Britain to local authorities, police authorities, fire authorities, probation committees, joint committees and joint boards of principal authorities and (in England and Wales) parish, town and community councils with budgeted income of more than £1,000,000. In Northern Ireland it applies to all district councils.

In England and Wales, the local authority SORP constitutes a 'proper accounting practice' under the terms of section 21(2) of the Local Government Act 2003. In Scotland, the local authority SORP constitutes proper accounting practice under section 12 of the Local Government in Scotland Act 2003. In Northern Ireland the status and authority of the local authority SORP derives from regulation 4 of the Local Government (Accounts and Audit) Regulations (Northern Ireland) 2006 and through the relevant accounts direction issued by Department of the Environment (Northern Ireland).

The SORP is also available in CD-ROM format. It comes complete with a licence for networking to all bona fide employees of the purchasing local authority only. Details of licencing arrangements for non-local authority purchasers are available from CIPFA’s publications department.

Download the contents: Word (39KB) | PDF (56KB)

Download the preface: Word (11KB) | PDF (44KB)

Copies of the new SORP cost £140.00 each for the book
and £425.00 (+VAT) = £499.38 each for the CD-ROM