The Statement of Recommended Practice (SORP): Accounting by Registered Social Housing Providers is now in place
The Housing SORP 2014 reflects the changes to UK GAAP and applies for periods commencing on or after 1 January 2015.
The SORP states that ‘a complete set of financial statements must include all of the following:
(a) a Statement of Financial Position as at the reporting date;
(b) a single Statement of Comprehensive Income;
(c) a statement of changes in equity for the reporting period;
(d) a statement of cashflows for the reporting period;
(e) notes to the financial statements, comprising a summary of significant accounting policies and other explanatory information, including narrative reporting requirements set out in Section 4 of this SORP, Narrative reporting.’
It highlights the interaction of the SORP and FRS 102. For example, paragraph 3.8 states:
‘FRS 102 allows entities to present either a single Statement of Comprehensive Income or a separate Income Statement and separate Statement of Comprehensive Income.
This SORP does not permit social landlords to present a separate Income Statement and separate Statement of Comprehensive Income.’