Navigating income recognition under the new Charities SORP

The new guidance brings a five‑step revenue recognition model into charity accounting, removes long‑standing options for recognising certain types of grant income, and raises the bar on judgement, documentation and disclosure.

These changes will affect the timing of income recognition, reported results, reserves positions and audit processes for many charities. 

What we covered 

This practical webinar focused on how the new income recognition requirements will work in practice and what charities should be doing now to prepare for the 2026 reporting cycle. 

Led by Chris McKain, Partner at UHY Nottingham, the session explored: 

• How the Charities SORP distinguishes between exchange and non‑exchange income, why the classification matters, and the risks of getting it wrong 
• The new five‑step revenue recognition model and how it applies to common charity income streams such as contracts, memberships, training and trading activity 
• Changes to grant income, including why the accrual model will no longer be permitted for government grants and how the performance model operates in practice 
• Legacy income considerations, including how probability, valuation and disputes influence when income can be recognised 
• The wider implications for reported income, reserves, comparatives and audit scrutiny 
• Practical steps charities can take now to map income streams early, reduce year‑end rework and avoid surprises during audit 

Throughout the session, the focus was firmly on translating the technical requirements of SORP 2026 into clear, workable actions for finance teams and trustees. 

Next steps 

This webinar forms part of our Helping you prosper: the SORP 2026 webinar series, a five‑part programme designed to help trustees, finance teams and charity leaders prepare for the most wide‑ranging changes to charity accounting and reporting in years. 

The series provides short, practical guidance on the key areas of change under SORP 2026, including Trustees’ Annual Report requirements, income recognition, lease accounting and related party disclosures, followed by a panel discussion bringing these themes together. 

Each session focuses on what is changing, why it matters and how charities can prepare ahead of the 2026 reporting cycle. 

You can view recordings and upcoming sessions in the series here: https://www.uhy-uk.com/insights/helping-you-prosper-sorp-2026-webinar-series