Updates to Housing SORP

The Housing SORP for registered social housing providers, has been updated to align with the recent FRS 102 triennial review. In addition, The Housing SORP: 2018 update, clarifies several areas which were unclear in the previous version.

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 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.

Although the changes are unlikely to have much of an impact on registered social landlords, the foreword reminds readers that the Housing SORP recommends accounting treatments and provides guidance but is not a substitute for following the accounting requirements themselves. 

A PDF of the Housing SORP 2018 is available from the National Housing Federation (£54.95 for non-members; £34.95 for members). A print version which will be available soon and you can email for further details. 

For more information, please contact Keith Ward.