What is SORP full form in Banking?
The SORP full form in banking is Statements of Recommended Practice. They are created in the public interest and describe current best accounting practices. SORPS issued by SORP-making authorities is designed to augment accounting standards and other legal and regulatory obligations by reflecting transactions or circumstances that are unique within specialist industries or sectors. SORPs are issued on subjects when it is not deemed appropriate to create an accounting standard at that time.
Requirements to be recognized as a SORP-making body:
To be recognized as a SORP-making body, an industry or sectoral body must meet the FRC’s criteria and commit to establishing and maintaining SORPs in accordance with the SORP Development Policy. SORPs exist for a variety of distinct companies and businesses. More details are provided below. If an entity falls under the purview of a SORP, its financial statements shall be prepared in conformity with FRS 102 and the SORP.
What is to be included in the SORP?
A SORP must include a statement from the FRC confirming, as appropriate, that the SORP does not appear to contain any fundamental points of principle that are unacceptable in the context of current financial reporting, auditing, or actuarial practice, nor does it conflict with an FRC standard or undermine the FRC’s broader objectives.
