The new FEHE SORP and updated FRS 102 are bringing some important changes for the University, particularly around lease accounting and revenue recognition. For us, the changes will take effect from the financial year starting 1 August 2026.
Over the past few months, the Finance team has been working through the implications in detail, and we have completed our impact assessment. One of the biggest changes is that most operating leases will move onto the balance sheet, while revenue from contracts with customers will need to be assessed using a new five-step model. That means a closer look at the way we recognise income, as well as the processes behind it.
We are also reviewing the full range of incentives we offer, including fee waivers, scholarships and bursaries, to make sure these are treated consistently and in line with the new requirements. As with any major accounting change, there will be some judgement involved, so we are reviewing our policies and procedures carefully to ensure they are consistent with the new requirements.
If you’d like to read more, further information is available on the BUFDG FEHE SORP hub.
See what's happening in Finance…