Housing SORP 2018 updated to reflect FRS 102 amendments

The National Housing Federation has updated the Housing SORP following recent amendments to financial reporting standards under FRS 102

The Housing SORP: update 2018 is a revised edition for registered social housing providers and reflects relevant changes to FRS 102 following the recent triennial review of the UK GAAP accounting standard as well as clarifying some other areas of the previous version of the SORP.

The key areas of change include:

  • clarifying what is included and excluded from operating surplus;
  • removing the ‘undue cost and effort’ exemption in valuing investment properties;
  • allowing an accounting policy choice to carry property rented to other group entities at either cost or fair value; and
  • drawing attention to the requirement to include a net debt reconciliation as part of cash flow disclosures.

Social landlords are subject to accounting requirements through Determinations or Statutory Instruments, the Companies Act 2006, the Cooperative and Community Benefit Societies Act and legislation extant in Northern Ireland and Scotland.

‘The central objective of this SORP is to narrow areas of difference of accounting within the social housing sector by recommending, as far as possible, preferred accounting treatments and providing guidance in applying UK GAAP. This is designed to allow social landlords to comply with the applicable accounting requirements. However, it is a not a substitute for the accounting requirements themselves,’ the National Housing Federation said in the foreword to the revised SORP.

The updated SORP will be effective for periods beginning on or after 1 January 2019, although early adoption is permitted provided all aspects are adopted.

The 127-page publication, Housing SORP 2018 is currently only available in digital format as a downloadable PDF. Housing SORP 2018 is available for £54.95 for non-members; £34.95 for members.

Housing SORP 2018 print version which will be available soon, email for further details. 

Report by Sara White

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