Explanatory note

This Order sets out accounting requirements for all registered social landlords (“RSL”) with a period of account which begins on or after 1st April 2007. Article 14 revokes the Registered Housing Associations (Accounting Requirements) (Scotland) Order 1999 but provides that it shall continue to apply for periods of account which start before 1st April 2007.

Article 4 provides that any requirement in the Order to prepare information in a specified form shall be satisfied if it is prepared in a form substantially to the same effect.

Article 5 provides that amounts which are not material may be disregarded, unless a provision states otherwise.

Article 6 provides that the form and content of an RSL’s balance sheet, income and expenditure account, additional statements and any additional information provided by way of notes to the accounts must comply with the requirements of the Order.

Article 7 provides that the balance sheet of an RSL must give a true and fair view of the state of affairs of a RSL as at the end of the period of account and that an RSL’s income and expenditure account shall give a true and fair view of the surplus or deficit incurred by an RSL for the period of account.

Article 8 provides that an RSL must apply accounting policies consistently, and the policies adopted by it must be stated. Where a change is made to an accounting policy, the reason for it, details of the change and its effect on the accounts must be stated in the notes to the accounts.

Article 9 provides that if an RSL engages in housing activities in relation to different types of accommodation, the income and expenditure account shall state the amount of turnover, costs and the amount of operating surplus and deficit attributable to each type of accommodation.

Article 10 sets out the requirements for the format of the income and expenditure account and balance sheet of RSLs.

Article 11 provides that the balance sheet shall be signed on behalf of the governing body of an RSL and must show the date the accounts were authorised for issue by the governing body.

Article 12 and the Schedule to this Order sets out the information that an RSL should include in its notes to the accounts. Article 12 provides that in doing so, an RSL shall also include the corresponding information for its previous period of account.

Article 13 sets out the additional statements that RSLs must include in their accounts.