Article 2 Interpretation

In this Order–

• “accounting policies” means the specific accounting principles selected and followed by a registered social landlord which are, in the opinion of the governing body of the registered social landlord, appropriate to its circumstances and best suited to present a true and fair view of its results and financial position and which conform with generally accepted accounting practice;

• “balance sheet” means in the case of a company, the balance sheet required for the purpose of section 226A(1)(a) of the Companies Act 1985^f1 and in the case of an industrial and provident society, the balance sheet required for the purpose of section 39(1) of the Industrial and Provident Societies Act 1965^f2;

• “book value” means the value of an asset as it appears on the balance sheet;

• “depreciation” means the cost or value of an asset which is used or consumed during the period of account;

• “executive” means a director, trustee, member of the governing body and member of the key management of a registered social landlord;

• “general needs housing” means housing that is not shared ownership accommodation or supported housing accommodation;

• “governing body” means in the case of a company, the board and in the case of an industrial and provident society, the management committee;

• “historical cost surplus or deficit” means the surplus or deficit if no revaluation has taken place during the period of account;

• “impairment” means a reduction in the recoverable amount of a fixed asset below its carrying value;

• “income and expenditure account” means in the case of a company, the profit and loss account required for the purpose of section 226A(1)(b) of the Companies Act 1985 and in the case of an industrial and provident society, the revenue account required for the purpose of section 3(2) of the Friendly and Industrial and Provident Societies Act 1968^f3;

• “industrial and provident society” means a society registered under the Industrial and Provident Societies Act 1965;

• “officer” has the same meaning as in Part 3 of the Housing (Scotland) Act 2001^f4;

• “operating costs” means all of the direct and indirect costs associated with an activity, including cost of sales;

• “operating surplus or deficit” means the surplus or deficit incurred after running costs are taken into account and before any interest or other finance costs are taken into account;

• “period of account” means the period to which the income and expenditure account relates;

• “planned and cyclical maintenance” means costs incurred by the registered social landlord to maintain property that can be planned or contracted for;

• “reactive maintenance” means costs incurred by the registered social landlord to maintain property that cannot be planned or contracted for;

• “shared ownership accommodation” means accommodation that is owned jointly by the registered social landlord and the occupant;

• “the SORP” means the Statement of Recommended Practice: Accounting by Registered Social Landlords Update, issued by the National Housing Federation, the Welsh Federation of Housing Associations and the Scottish Federation of Housing Associations in May 2005^f5;

• “subsidiary undertaking” means an undertaking which has a parent body which is a registered social landlord or a registered social landlord in terms of section 1 of the Housing Act 1996^f6 and that parent body either–

  1. (a)

     exercises, or has the power to exercise dominant influence or control over the undertaking, or

  2. (b)

     is managed on a unified basis with the undertaking;

• “supported housing accommodation” means accommodation owned by a registered social landlord and allocated to an individual requiring support to live independently, which is occupied by that individual as the individual’s sole or main residence, but does not include accommodation the primary purpose of which is to provide care rather than housing, or which aims to fulfil a statutory duty other than under housing legislation;

• “unit of accommodation” means in the case of supported housing or a hostel, accommodation which is provided for one individual and, in any other case, a dwelling;

• “voids” means the monetary value of rent lost by a registered social landlord for properties that are not let.