Made | 6th March 2007 | ||
Laid before the Scottish Parliament | 6th March 2007 | ||
Coming into force | 1st April 2007 |
1. | Citation and commencement |
2. | Interpretation |
3. | Application of Order |
4. | Information in specified form |
5. | Materiality |
6. | General accounting requirements |
7. | True and fair view |
8. | Accounting principles and policies |
9. | Housing activities |
10. | Format of income and expenditure account and balance sheet |
11. | Signature of balance sheet |
12. | Notes to the accounts |
13. | Additional statements |
14. | Revocation and savings |
SCHEDULE — | INFORMATION TO BE INCLUDED IN THE NOTES TO THE ACCOUNTS |
Application of Order
3.
This Order applies to all registered social landlords with a period of account which begins on or after 1st April 2007.
Information in specified form
4.
Any requirement in this Order to prepare information in a specified form shall be satisfied if it is prepared in a form substantially to the same effect.
Materiality
5.
Unless stated otherwise, amounts which in a particular context of any provision of this Order are not material may be disregarded for the purpose of that provision.
General accounting requirements
6.
—(1) The accounts of a registered social landlord shall comply with the requirements of this Order with respect to the form and content of the balance sheet, income and expenditure account, additional statements and any additional information to be provided by way of notes to the accounts.
(2) Nothing in this Order shall prevent the accounts giving more information than is required by this Order.
True and fair view
7.
—(1) The balance sheet shall give a true and fair view of the state of affairs of the registered social landlord as at the end of the period of account.
(2) The income and expenditure account shall give a true and fair view of the surplus or deficit incurred by the registered social landlord for the period of account.
(3) Where it is necessary to depart from the requirements of this Order so as to give a true and fair view of the state of affairs of a registered social landlord and of its income and expenditure account in accordance with the duties imposed by–
nothing in this Order shall prevent such a departure but particulars of any such departure, the reasons for it and its effect shall be stated in the notes to the accounts.
Accounting principles and policies
8.
—(1) Accounting policies used by a registered social landlord shall be applied consistently within the same accounts and from one period of account to another.
(2) Accounting policies adopted by a registered social landlord in determining the amounts to be included in respect of items shown in the balance sheet or in the income or expenditure account shall be stated in the notes to the accounts.
(3) Where a change is made to an accounting policy, details of the change, the reasons for it and its effect on the accounts shall be stated in the notes to the accounts.
(4) Where the accounts are prepared other than on a going concern basis, a statement to that effect shall be included in the notes to the accounts.
(5) Amounts in respect of items representing assets or income may not be set off against amounts in respect of items representing liabilities or expenditure (as the case may be) or vice versa.
(6) All income and expenditure relating to the period of account shall be taken into account without regard to whether the income and expenditure is received or paid during the period of account.
Housing activities
9.
—(1) If in the course of the period of account a registered social landlord has engaged in housing activities in two or more types of accommodation that in the opinion of the governing body differ substantially from each other, the income and expenditure account shall state, in respect of each type–
(2) For the purposes of paragraph (1), the type of accommodation includes general needs housing, supported housing accommodation and shared ownership accommodation.
Format of income and expenditure account and balance sheet
10.
—(1) Subject to paragraph (3), the income and expenditure account of every registered social landlord shall–
(2) Subject to paragraph (3), the balance sheet of every registered social landlord shall–
(3) The corresponding amount, if any, for the previous period of account shall be shown against each item in the income and expenditure account and in the balance sheet.
(4) Items listed in the Format adopted in preparing the income and expenditure account or balance sheet shall not be included if there is no amount to be shown in respect of both the period of account and the previous period of account.
Signature of balance sheet
11.
The balance sheet shall–
Notes to the accounts
12.
—(1) Every registered social landlord shall include in the notes to its accounts the information shown in the Schedule to this Order, together with the corresponding information for its previous period of account.
(2) Items listed in the Schedule to this Order shall not be included if there is no amount to be shown in respect of both the period of account and the previous period of account.
Additional statements
13.
—(1) Every registered social landlord shall include in the accounts–
(2) A registered social landlord which is–
shall include in the accounts a cash flow statement prepared in accordance with the SORP.
Revocation and savings
14.
—(1) Subject to paragraph (2), the Registered Housing Associations (Accounting Requirements) (Scotland) Order 1999[10] is hereby revoked.
(2) The Registered Housing Associations (Accounting Requirements) (Scotland) Order 1999 shall continue to apply in respect of any period of account starting before 1st April 2007.
RHONA BRANKIN
A member of the Scottish Executive
St Andrew's House, Edinburgh
6th March 2007
Turnover | Operating Costs | Operating Surplus or Deficit | Operating Surplus or Deficit for Previous Period of Account | |
£ | £ | £ | £ | |
Social lettings | ||||
Other activities | ||||
Total | ||||
Total for previous period of account |
General Needs Housing | Supported Housing Accommodation | Shared Ownership Housing | Other (describe) | Total | Total for previous period of account | |
£ | £ | £ | £ | £ | £ | |
Rent receivable net of service charges | ||||||
Service charges | ||||||
Gross income from rents and service charges | ||||||
Less voids | ||||||
Net income from rents and service charges | ||||||
Grants from the Scottish Ministers | ||||||
Other revenue grants | ||||||
Total turnover from social letting activities | ||||||
Management and maintenance administration costs | ||||||
Service costs | ||||||
Planned and cyclical maintenance including major repairs costs | ||||||
Reactive maintenance costs | ||||||
Bad debts – rents and service charges | ||||||
Depreciation of social housing | ||||||
Impairment of social housing | ||||||
Operating costs for social letting activities | ||||||
Operating surplus or deficit for social lettings | ||||||
Operating surplus or deficit for social letting for previous period of account |
Grants from Scottish Ministers | Other revenue grants | Supporting people income | Other income | Total Turnover | Operating costs – bad debts | Other operating costs | Operating surplus or deficit | Operating surplus or deficit for previous period of account | |
£ | £ | £ | £ | £ | £ | £ | £ | £ | |
Wider role activities undertaken to support the community, other than the provision, construction, improvement and management of housing | |||||||||
Care and repair of property | |||||||||
Factoring | |||||||||
Development and construction of property activities | |||||||||
Support activities | |||||||||
Care activities | |||||||||
Agency/management services for registered social landlords | |||||||||
Other agency/management services | |||||||||
Developments for sale to registered social landlords | |||||||||
Developments and improvements for sale to non registered social landlords | |||||||||
Other activities (describe here) | |||||||||
Total from other activities | |||||||||
Total from other activities for the previous period of account |
Administration details
3.
The address of the registered office of the registered social landlord and, if different, the address of the principal office of the registered social landlord.
4.
The name of any person who is an executive at any point during the period of account and the date of that person's appointment or resignation if during the period of account.
5.
The names and addresses of the bankers, solicitors, auditors and other principal professional advisers of the registered social landlord.
Accounting standards
6.
—(1) Whether the accounts have been prepared in accordance with applicable accounting standards and the SORP[11], particulars of any material departures from these standards or the SORP and the reason for any such departure.
(2) For the purposes of this paragraph, "accounting standards" has the same meaning as "accounting standards" in section 256(1) of the Companies Act 1985 and "applicable" means such standards as are, in accordance with their terms, relevant to the registered social landlord's circumstances and to the accounts.
Group accounts
7.
—(1) Where the registered social landlord is a parent undertaking, whether it is required by any other enactment to prepare group accounts.
(2) Where the registered social landlord is a subsidiary undertaking, the name of the undertaking which the governing body of the registered social landlord regards as its parent undertaking.
Officers' emoluments
8.
The aggregate amount of emoluments payable to, or receivable by the officers and former officers of the registered social landlord whose total emoluments are £60,000 or more, excluding employer's pension contributions, during the period of account.
9.
The number of officers whose emoluments during the period of account fall within each band of £10,000 from £60,000 upwards.
10.
If there are no officers with emoluments of £60,000 or more during the period of account, this should be stated.
11.
The emoluments payable to, or receivable by the chief executive of the registered social landlord, excluding employer's pension contributions.
12.
In paragraphs 8 to 11, "emoluments" means payments in respect of an officer's services as an officer of the registered social landlord or the officer's services (while an officer of the registered social landlord) in connection with the management of its affairs or the affairs of any subsidiary undertaking of the registered social landlord, whether those amounts are payable by the registered social landlord or its subsidiary undertakings, and includes–
and emoluments in respect of a person accepting office shall be treated as emoluments in respect of his or her service as officer.
13.
The pension contributions payable to, or receivable by officers of the registered social landlord whose total emoluments (excluding pension contributions) are £60,000 or more during the period of account, or where no such contribution is payable, a statement to that effect.
14.
—(1) Particulars of any loan made to an officer or person connected with an officer.
(2) Particulars of any loan which is repayable by the registered social landlord, in which an officer of the registered social landlord or person connected with the officer has an interest.
Compensation payable to officers
15.
The aggregate amount of any compensation payable to, or receivable by officers and former officers of a registered social landlord for loss of office (whether by retirement or otherwise) during the period of account, distinguishing between compensation in respect of the office, whether of the registered social landlord or any subsidiary undertaking and compensation in respect of other offices.
16.
In paragraph 15, "compensation" means compensation received or receivable for–
Consideration for officers' services
17.
—(1) The aggregate amount of any consideration payable to or receivable by third parties during the period of account, where the consideration is £60,000 or more, for making available the services of any person to perform in the role of officer of the registered social landlord, or (while an officer of the registered social landlord) in connection with the management of the affairs of the registered social landlord or the affairs of any subsidiary undertaking of the registered social landlord.
(2) For the purposes of this paragraph, "third parties" means persons other than an officer of the registered social landlord or any of its subsidiary undertakings.
18.
—(1) In paragraphs 8 to 17, amounts to be disclosed include benefits other than in cash and, in relation to such amounts, reference to the amounts are to be the estimated monetary value of the benefit.
(2) The nature of such benefits shall also be disclosed.
Employees
19.
—(1) The average number of full time equivalent employees of the registered social landlord, as ascertained from the average number of full time equivalent employees employed in each month of the period of account.
(2) Where the total number of employees differs materially from the number of full time equivalent employees, this should be disclosed.
20.
In paragraph 19, a "full time equivalent" employee means a full time employee working standard hours and includes temporary, seconded and agency staff.
21.
In relation to employees of the registered social landlord, the aggregate amount of–
22.
In paragraph 21–
Auditors
23.
The amount of remuneration including sums payable in respect of expenses received by or receivable by the registered social landlord's auditors in their capacity as such.
24.
—(1) The amount of any remuneration including sums payable in respect of expenses, received by or receivable by the registered social landlord's auditors or their associates in respect of services other than those of auditors in their capacity as such.
(2) For the purposes of this paragraph, "associate" has the same meaning as in regulations made under section 390B of the Companies Act 1985[12].
Interest payable and similar charges
25.
A summary of interest payable and similar charges disclosing–
Taxation
26.
A breakdown of the tax charge for the period of account including–
27.
Particulars of any special circumstances which affect liability in respect of the taxation of surpluses, income or capital gains for the period of account, or liability in respect of these items for future periods of account.
Fixed Assets
28.
The amount of fixed assets at the beginning and at the end of the period of account and the effect on any amount shown in the balance sheet in respect of that item of–
29.
A reconciliation between the balance at the beginning and at the end of the period of account, for all fixed assets, and in aggregate, a reconciliation of housing properties and other fixed assets, in respect of gross cost or valuation, capital grants, accumulated depreciation and net book value.
30.
—(1) Where the registered social landlord has recognised impairment losses in the accounts in the period of account, there shall be stated–
(2) For the purposes of this paragraph, "recognised impairment losses" means the recognition in the accounts, of the reduction in the recoverable amount of a fixed asset below its carrying value.
31.
—(1) Where any amount is shown in respect of land (including buildings) in the registered social landlord's balance sheet, there shall be stated–
(2) For the purposes of this paragraph, "long lease" and "short lease" have the same meanings as in paragraph 83 of Schedule 4 to the Companies Act 1985.
Fixed asset investment
32.
—(1) Where a registered social landlord disposes of a house on shared equity terms, that disposal shall be treated as a fixed asset investment and the grant the registered social landlord receives from the Scottish Ministers shall be treated as a capital grant and shown separately as a deduction from the investment.
(2) For the purposes of this paragraph, "disposed of on shared equity terms" has the meaning given in section 58(6) of the Housing (Scotland) Act 2001[13].
Rent arrears
33.
The aggregate amount of gross rent arrears, the amount of any provisions for bad and doubtful debts, and the aggregate amount for net rent arrears.
Creditors
34.
In respect of each item shown under "creditors" in the registered social landlord's balance sheet, there shall be stated–
35.
If it is not practicable to comply with paragraph 34(b) because to do so would result in a statement of excessive length it shall be sufficient to give a broad summary of the terms of payment or repayment and the rates of interest payable on the debts.
Provisions
36.
In respect of any provision shown in the balance sheet–
37.
The amount of the provision for deferred taxation shall be stated separately from the amount of any other provision for liability.
38.
The reason for any charge for a provision where the reason is other than that which the provision was intended for.
39.
In paragraphs 36 to 38, "provision" means an amount retained as reasonably necessary for the purpose of providing for any liability which is either likely to be incurred, or certain to be incurred but uncertain as to the date on which it will arise.
Share capital
40.
The balance of share capital at the beginning and at the end of the period of account, together with details of movements during the period of account.
Accommodation managed by the registered social landlord
41.
—(1) The number of units of different types of accommodation managed by the registered social landlord at the beginning and at the end of the period of account.
(2) For the purposes of this paragraph the type of accommodation includes general needs housing, supported housing accommodation and shared ownership accommodation.
Accommodation managed by others
42.
Where units of accommodation owned by a registered social landlord are managed on behalf of the registered social landlord by another body–
43.
If it is not practicable to comply with paragraph 42 because to do so would result in a statement of excessive length, it shall be sufficient to give details of the main managing bodies and a summary of the number of units of accommodation and amount and type of funding payable.
Charges
44.
Particulars of any charge on the assets of the registered social landlord to secure the liabilities of any other person, including, where practicable, the amount secured.
Capital and other commitments
45.
There shall be stated where practicable, the aggregated amount or estimated amount of contracts for capital expenditure, so far as not provided for, together with an indication of the proposed financing of such expenditure.
46.
Particulars of any other financial commitments which have not been provided for and are relevant to assessing the registered social landlord's state of affairs.
Contingent liabilities
47.
The following information shall be given with respect to any other contingent liability not provided for–
[2] 1985 c.6. Section 226A was inserted by Part 2 regulation 2 of Companies Act 1985 (International Accounting Standards and Other Accounting Amendments) Regulations 2004/2947.back
[12] 1985 c.6. Section 390B was inserted by sections 118 and 121 of the Companies Act 1989 (c.40) and substituted by section 7(1) of the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c.27).back