The Pensions Research Accountants Group (“PRAG”) has released the Statement of Recommended Practice, Financial Reports of Pension Schemes 2026 (the “2026 SORP”) and their Press Release includes:

“The final 2026 SORP has been released onto the member section of the PRAG website / Member area / Publications and it is required to be adopted for all periods commencing on or after 1 January 2026.

The SORP was last reviewed and updated in 2018.  Since that time, the FRC has made a number of amendments to FRS 102.  There have also been a number of industry developments which impact on pension scheme financial reporting; for example in pension scheme investment strategies.  In addition, there have been changes to pensions legislation and regulations.

Therefore, the updates to the SORP have been to apply the changes required to be consistent with FRS 102 and also current pension legislation and regulations, alongside updates to reflect current pension scheme developments.

Respondents to the consultation process generally supported the proposals to amend the SORP, that were raised in the three key questions, as being reasonable and proportionate.  These three question were with respect to:

• Fair value determination;
• Investment risk disclosures; and
• Sole investor pooled arrangements.

Some comments and questions were raised in these three areas and we have sought to address these, where appropriate, within the final 2026 SORP, and also through updating the Basis for Conclusions.  In all cases, we are required to ensure that any changes to the SORP are not inconsistent with FRS 102 or relevant legislation and regulations.”