Distributed to: All registered social landlords, registered social landlords' auditors and local authorities

Summary: This circular announces the Accounting Requirements for Registered Social Landlords General Determination 2000. This circular replaces R2 - 12/98 and R2 - 12/97 and updates R2 - 13/00.

Legislation: Section 7 and Part III of Schedule 1 to the Housing Act 1996

1 Introduction

1.1 This circular sets out the changes made to accounting requirements for all registered social landlords by the Accounting Requirements for Registered Social Landlords General Determination 2000 (the 2000 Determination).

2 Basis of the 2000 Determination

2.1 The accounting requirements set out in the 2000 Determination are based on the Companies Act 1985 (as amended by the Companies Act 1989 and the Companies Act 1985 (Miscellaneous Accounting Amendments) Regulations 1996) with such additional requirements which the Corporation, as the Regulator, considers necessary to monitor a Registered Social Landlord (RSL), or for users of the accounts to obtain a true and fair view of the financial position and performance of an RSL.

2.2 These requirements do not conflict with those of the Registrar of Friendly Societies or the Charity Commission. Part VI of the Charities Act 1996, together with the Charities Statement of Recommended Practice, recognise the different accounting requirements for charities which are registered with the Corporation.

2.3 In some cases an RSL may have to supply further additional information to satisfy the requirements of another body with which it is registered. Nothing in this Determination prevents such additional information being supplied.

3 Generally Accepted Accounting Practice

3.1 Financial statements prepared in accordance with this Determination are intended to show a true and fair view, and in doing so should follow generally accepted accounting practice, as interpreted in applicable financial reporting standards and the Statement of Recommended Practice (SORP), 'Accounting by Registered Social Landlords'. Particulars of any departure from the requirements of such financial reporting standards or the SORP must be disclosed in the financial statements together with the reason(s) for the departure(s).

4 Scope of the Determination

4.1 The 2000 Determination applies to all social landlords which are registered with the Corporation under Sections 1 or 3 of the Housing Act 1996.

5 Small Registered Social Landlords

5.1 RSLs providing 250 or less units of accommodation, on the first day of the period of account, are able to take advantage of the exemption not to provide the information set out in Part 1 of Schedule 1 to the Determination.

5.2 We are keen to reduce the burden on small RSLs and will keep the disclosure requirements for small RSLs under review. In this light we would welcome proposals for reducing the disclosure requirements for small RSLs.

6 Summary of Main Changes

Revision of the SORP

6.1 The revised Statement of Recommended Practice, Accounting by Registered Social Landlords was published in March 1999.

6.2 The Determination states that, where appropriate, disclosure should be made in accordance with the SORP, and draws attention to the particular paragraphs of the SORP which detail disclosure requirements.

Segmental Reporting

6.3 Over recent years some RSLs have been extending their activities beyond the provision of social housing.

6.4 In regulatory terms, the Corporation has set out its policy in 'Regulating