This Content Was Last Updated on February 9, 2017 by Jessica Garbett
The National Housing Federation has published an invitation to comment on the Housing SORP – Statement of Recommended Practice (SORP): Accounting by registered social housing providers.
The Housing SORP 2014 reflects the changes to UK GAAP and would apply for periods commencing on or after 1 January 2015.
The National Housing Federation has stated that ‘in order to ensure that the SORP reflects housing associations’ businesses and that the new accounting rules are applied consistently and comprehensively across the sector, we are conducting a public consultation exercise. Responses are sought from housing associations and other interested parties such as professional accounting bodies, the Homes and Communities Agency, and lenders.’
The SORP states that ‘a complete set of financial statements must include all of the following:
(a) A Statement of Financial Position as at the reporting date
(b) A single Statement of Comprehensive Income
(c) A Statement of Changes in Equity for the reporting period
(d) A Statement of Cash Flows for the reporting period
(e) Notes to the financial statements, comprising a summary of significant accounting policies and other explanatory information, including narrative reporting requirements set out in Section 4 of this SORP, Narrative reporting.’
It highlights the interaction of the SORP and FRS 102. For example paragraph 3.8 states ‘FRS 102 allows entities to present either a single Statement of Comprehensive Income or a separate Income Statement and separate Statement of Comprehensive Income. This SORP does not permit social landlords to present a separate Income Statement and separate Statement of Comprehensive Income.’
View the draft SORP now, while the deadline for comments is 14 February 2014.
Post contributed by ACCA