1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared in accordance with applicable United Kingdom financial reporting standard, the Statement of Recommended Practice: Accounting by Registered Social Landlords 2014 and with the Accounting Requirements for Registered Social Landlords General Determination 2015. The accounts have been prepared in accordance with the historical cost convention.

Turnover policy
Turnover comprises rental and service income receivable, all in respect of residential charges, as well as the amortisation of the Social Housing Grant.

Tangible assets depreciation policy
Depreciation of Housing Properties
Where a housing property comprises two or more major components with substantially different useful economic lives, each component is accounted for separately and depreciated over its individual useful economic life. Expenditure relating to the subsequent replacement or renewal of components is capitalised as incurred. Depreciation is charged on the historic cost of property components. Freehold land is not depreciated. Leasehold land is depreciated over the remaining term of leases. The depreciable amount is written off over the estimated useful lives from the date of purchase/build as follows:

Component Type Useful Life
External Structure Leasehold 99 Years
Internal Structure 50 Years
External Windows/Doors 25 Years
Kitchens 25 Years
Bathrooms 25 Years
Heating System 20 Years
Lift 25 Years

Components on leasehold land are depreciated over the shorter of the above and the remaining period of the lease. Freehold land is not depreciated

Fixtures, fittings and equipment
Depreciation is charged on a straight line basis at rates of 10% and 20% per annum.

Intangible assets amortisation policy
Social Housing Grant
Social Housing Grants are receivable from the English Government and are utilised to reduce the capital costs of housing properties. The amount of SHG receivable is calculated on a fixed basis depending on the size, location and type of housing property.

Where, following the sale of a property, SHG becomes repayable under certain circumstances, to the extent it is not subject to abatement, it is included as a current liability until it is recycled or repaid. SHG which is repayable will normally be restricted to net proceeds of sale. SHG is subordinated in respect of loans by agreement with the English Government.

Grants received in relation to Housing Properties are shown within creditors and are disclosed as Deferred income net of amortisation. Grants held as deferred income are released over the useful life of the component to which they relate to in accordance with the depreciation policy set out below.

Other accounting policies
Accounting Policies
General
The principal accounting policies of the Society are set out in the following sub-paragraphs.
Accounting Basis
The financial statements have been prepared in accordance with applicable United Kingdom financial reporting standard, the Statement of Recommended Practice: Accounting by Registered Social Landlords 2014 and with the Accounting Requirements for Registered Social Landlords General Determination 2015. The accounts have been prepared in accordance with the historical cost convention.

Adoption of Housing SORP 2014
During the year, the Society being a Registered Social Landlord, adopted SORP 2014 and as appropriate Financial Reporting Standard 102(“FRS102”). All results for 2016 are stated in accordance with these accounting standards and the comparative financial information presented for 2015 has been fully restated to reflect the same accounting treatments as 2016. The change in accounting policy has given rise to prior year adjustments to the results and financial position of the Society for the previous year. Note 21 provides details of the adjustments made from the signed financial statements for the year ended 31st March 2015 and the restated comparatives included in these financial statements.Fixed Assets. Housing land and building
Housing land and building is principally properties available for rent and are stated at cost.

Cost includes the:
1. cost of acquiring land and buildings;
2. development expenditure;
3. interest charges incurred during the development period (Interest on loans raised to finance the development are capitalised up to the date at which practical completion occurs);
4. development administration costs.

Following the implementation of component accounting, certain components of residential properties with asset lives which are different to the main structure, or shell, of those properties have been separately identified for depreciation purposes. On replacement of such assets the original asset is written off and the replacement asset is capitalised and depreciated over its useful life. On implementing the change in accounting policy the deprecation charges on all residential properties have been reinstated as if the policy had always been applied, replacement components previously written off as major repairs have been restated as fixed assets and components which have been replaced have been written off.

"Housing properties in the course of construction” are stated at cost and are transferred into “housing properties” when completed. Any overhead costs directly attributable to bringing fixed assets into their working condition for their intended purpose are capitalised. Expenditure on the initial purchase of land and buildings is capitalised and disclosed as part of housing properties in the course of construction.

Development Administration Costs
The cost of a housing property comprises its purchase price and any costs directly attributable to bringing it into working condition for its intended use. Directly attributable costs of the Society's staff arising directly from the construction, or acquisition of the property, and the incremental costs of the Society are capitalised where they relate to expenditure that would not have been incurred if the Society did not have an ongoing development programme. Detailed analysis of staff development activity is used as a basis of determining the amount of staff cost capitalised.

Fixed assets. Fixtures, fittings and equipment
Assets donated to the Society are not included in the balance sheet; other assets are included at cost.

Allocation of expenses
Expenses are allocated to management, repairs and service costs on the basis of the proportion of time or other relevant factors attributable to these activities.

Stocks
All catering and cleaning materials are treated as an expense when incurred.


Corporation Tax and VAT
The Society has charitable status and is exempt from Corporation Tax on the income it has received. The Society is not registered for VAT. Accordingly, no VAT is charged to residents and expenditure in the income and expenditure account includes the relevant VAT

2Company limited by guarantee
Company is limited by guarantee and consequently does not have share capital.

Figures for 2015 have been restated after applying changes required by SORP2014 and FRS104