1st August 2005

BBA Statements of Recommended Accounting Practice (SORPS)

The ASB has approved the British Bankers’ Association (BBA) and Irish Bankers’ Federation (IBF) for the purpose of issuing recognised Statements of Recommended Accounting Practice (SORPs). This arrangement requires the BBA and IBF to follow the ASB’s code of practice for the production and issuing of SORPs.

The code of practice provides the framework to be followed by the BBA and IBF for the development of SORPs, but does not entail a detailed examination of the proposed SORP by the ASB. However, a review of limited scope is performed.

On the basis of its review, the ASB has concluded that the SORP has been developed in accordance with the ASB’s code of practice and does not appear to contain any fundamental points of principle that are unacceptable in the context of current accounting practice or to conflict with any existing or currently contemplated accounting standards.


This SORP is issued jointly by the British Bankers’ Association (BBA) and the Irish Bankers’ Federation (IBF). It sets out recommendations on the accounting treatment and disclosure of advances in the accounts of banks. Although its recommendations are not mandatory, banks are encouraged to follow them and to state in their financial statements that they have done so. They are also encouraged to disclose any departure from the recommendations and the reason for it. The provisions need not be applied to immaterial items. The provisions of this SORP have been arrived at after consideration of Statements of Standard Accounting Practice (SSAPs) and Financial Reporting Standards (FRSs) and other applicable laws and regulations currently in force. Regard must be paid to applicable accounting standards, laws and regulations since SORPs cannot override these requirements. The recommendations in the SORP are also subject to the overriding requirement that accounts must present a true and fair view.

SORPs issued by the BBA and IBF are recommendations addressed by the two associations to their own members and, as such, are intended to apply to the entity accounts of banks incorporated in the United Kingdom or the Republic of Ireland and to the consolidated accounts of British and Irish banking groups. However, although they are intended to be authoritative and persuasive, it is recognised that it is not compulsory to disclose the fact or nature of any departure from recommended practice.

Other SORPs published by the BBA and IBF cover accounting for securities, derivatives, contingent liabilities & commitments and segmental reporting.

November 1997

Please download the Full “Statement of Recommended Practices” from the pdf link below.

Note: That this is a very long document of 107 pages and will take some time to download.