Income recognition | SORP 2026 Explained

SORP 2026 introduces fundamental changes to how charities recognise income, with significant implications for contracts, grants and other exchange transactions. In this recorded webinar, Chris McKain, Partner at UHY Nottingham, explains how the new income recognition requirements will work in practice and what charities need to consider now as they prepare for the 2026 reporting cycle. The session explores how the Charities SORP distinguishes between exchange and non‑exchange income, why correct classification matters, and how the new five‑step revenue recognition model applies to common charity income streams such as contracts, memberships, training and trading activity. Chris also looks at key changes to grant income, including why the accrual model will no longer be permitted for government grants and how the performance model will operate in practice. The webinar covers legacy income and how issues such as probability, valuation and disputes can affect when income is recognised, as well as the wider impact on reported results, reserves and audit processes. Throughout the session, there is a strong focus on practical steps charities can take now to start mapping income streams early and reduce year‑end pressure. This short, practical webinar is aimed at charity finance teams, trustees and advisers who want an early, clear understanding of what is changing under SORP 2026 and how to prepare with confidence. If you would like tailored support reviewing your income streams or planning for the transition, our charity specialists are happy to help. Learn more or get in touch via the link below.