Updated SORP for registered social housing published

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26 Oct, 2018

The National Housing Federation (NHF) has published an updated Statement of Recommended Practice (SORP) setting out revised guidance for accounting for registered social housing providers in the UK.

SORPs are intended to supplement accounting standards and other legal and regulatory requirements to reflect transactions or circumstances that are unique to particular sectors such as housing.

The updated SORP reflects the Amendments to FRS 102 – Triennial review 2017 – Incremental improvements and clarifications issued by the Financial Reporting Council in December 2017.  The key changes include:

  • Clarifying what is included and excluded from operating surplus.
  • Removing the “undue cost or effort” exemption in valuing investment properties.
  • Allowing an accounting policy choice to carry property rented to other entities at either cost or fair value.
  • Drawing attention to the requirement to include a net debt reconciliation as part of cash flow disclosures.

The revised SORP is effective for accounting periods beginning on or after 1 January 2019, although early adoption is permitted.

Copies of the amended SORP are available from on the NHF website.

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