The Registered Housing Associations (Accounting Requirements) Order 1992

PART II GENERAL ACCOUNTING REQUIREMENTS

5.—(1) Every association shall produce accounts for the purposes of this Order at the end of each period of account.

(2) Where the accounts of an association are prepared other than on the basis that the association is a going concern, a statement to that effect shall be included in the accounts.

6.—(1) Accounting policies used by an association shall be applied consistently within the same accounts from one period of account to another and the accounting policies adopted by the association in determining the amounts to be included in respect of items shown in the balance sheet or in the income and expenditure account shall be stated (including such policies with respect to the depreciation and diminution in the value of assets).

(2) In this article—

“accounting policies” means the specific accounting bases selected and consistently followed by an association which are, in the opinion of the directors of the association, appropriate to its circumstances and best suited to present fairly its results and financial position; and

“consistently” means consistency of accounting treatment of the items with each accounting period and from one accounting period to the next.

7.—(1) The amount of any item shown shall be determined on a prudent basis, and in particular—

(a) only surpluses realised at the balance sheet date shall be included in the income and expenditure account; and

(b) all liabilities and deficits which have arisen or are likely to arise in respect of the period of account to which the accounts relate shall be taken into account, including those which only become apparent between the balance sheet date and the date on which it is signed on behalf of the managing body.

(2) In paragraph (1), “prudent” means not anticipating revenue and surplus, but recognising them only when realised in the form of cash (or of other assets of which the ultimate cash realisation can be assessed with reasonable certainty) and making provision for all known expenses and deficits whether the amount of these is known with certainty or is a best estimate in the light of the information available.

8.—(1) 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 an association and of its income and expenditure account in accordance with the duties imposed by section 3(1) and (4) of the 1968 Act, paragraph 2 of Schedule 3 to the 1985 Act or section 226(2) of the Companies Act 1985(1)—

(a) nothing in this Order shall prevent such a departure; but

(b) the fact of any such departure, the reasons for it and its effect shall be recorded in the notes to the accounts of the association.

(2) Nothing in this Order shall prevent the accounts of an association from giving more information than is required by this Order.

9.  All income and charges relating to the period of account shall be taken into account without regard to the date of receipt or payment.

10.  In determining the aggregate amount of any item to be included in the accounts, the amount of each individual asset or liability that falls to be taken into account shall be determined separately.

11.  Where the accounts are to be circulated by the association to persons who are not members of the association a copy of the auditor’s report on those accounts shall be circulated at the same time.

12.—(1) The accounts shall—

(a) show the date on which they have been approved by the managing body of the association and give the date of approval; and

(b) be signed by at least one member of that body on its behalf and at least one additional person who is an officer of the association.

(2) That date and those signatures shall appear on the balance sheet of the association.

(1)

1985 c. 6; section 226 was inserted by the Companies Act 1989 (c. 40), section 4(1).