Statements of Recommended Practice ("SORPs") are recommendations on accounting practices for specialised industries or sectors. They supplement accounting standards and other legal and regulatory requirements in the light of the special factors prevailing or transactions undertaken in a particular industry or sector. SORPs are issued not by the Accounting Standards Board ("ASB") but by industry or sectoral bodies recognised for the purpose by the ASB. PRAG is recognised by the ASB as the appropriate body within the pensions industry for issuing statements of recommended practice governing the form and content of financial statements for pension schemes.
In 1996, PRAG published its first SORP setting out best practice for the financial statements of pension schemes. PRAG is required to keep SORP up to date having regard to changes in legislation and Financial Reporting Standards. Due to changes affecting financial reporting since 1996, the PRAG has published revisions to the SORP in 2002, 2007 and 2014. Details of the 2014 revision are set out below.
SORPs set out recommended rather than mandatory practice. However, current pension regulations in the UK and the Republic of Ireland make specific reference to the SORP.
Copies of the document can be obtained from I-Croner. For details of how to order, please visit our Publications page
2014 Revision to SORP
In April 2014, PRAG issued an Exposure Draft of a revised SORP "Financial Reports of Pension Schemes". this can be accessed through the link to the right.
The period for responses to the Exposure Draft ended on 16 July 2014. The responses can be accessed by clicking the link to the right.
Inclusion of Actuarial Liabilities in the Financial Statements of Pension Schemes - A Consultation Paper
At the request of the Accounting Standards Board ("ASB"), PRAG has carried out a consultation process regarding the inclusion of actuarial liabilities within the Financial Statements of Pension Schemes. This consultation process involved, the PRAG "SORP" Working Party issuing a 12 page consultation paper in November 2002. The consultation period closed 28 February 2003 and the Working Party have now collated the responses.
An overview of the responses is now available. Click here to download the file in PDF format (File size: 143 k).
In collating the responses, the Working Party grouped them under three heads and the responses are available to members in the members' area of the SORP Working Party.
A copy of the consultation paper is still available - Click here to download the file in PDF format (File size: 132 k).
PRAG regrets it is unable to offer advice on individual cases. Please refer to your auditors for detailed guidance.