Financial Statements 2016 | Page 62

International Financial Reporting Standards: FRS102 During financial year ended 31 March 2016 Accord adopted international reporting standards under the requirements of FRS102, as directed by the Statement of Recommended Practice for social housing providers (The Housing SORP 2014). The Housing SORP reflects changes to UK Generally Accepted Accounting Practice (GAAP) effective for financial years beginning on or after 1 January 2015. Changes brought about by the implementation of FRS102 are wide reaching and have impacted on many key annual accounting calculations including depreciation, amortisation, the treatment of social housing grant, the treatment of financial instruments and the classification of leases. Other considerations include the valuation of housing properties and other fixed assets. The breadth of these changes is likely to result in increased volatility in year-on-year reported financial results. The table below summarises the impact of the implementation of FRS102 on the reported financial results for the Group in year ended 31 March 2016: FRS102 – impact on operating surpluses (£000s) Operating surplus pre FRS102 adjustments Amortisation of government grant Increase in depreciation charge Pension deficit contributions Adjusted surplus post FRS102 adjustments Accord Group Accord HA 21,960 15,034 2,498 1,472 (1,806) (1,069) 593 95 £23,245 £15,532 FRS102 – impact on surpluses (£000s) Accord Group Accord HA Surpluses pre FRS102 adjustments 6,018 4,465 Amortisation of government grant 2,498 1,472 (1,806) (1,069) 593 95 (100) (17) 126 32 (181) (50) £7,148 £4,928 Increase in depreciation charge Pension deficit contributions Unwinding of pension deficit discount Increase in depreciation written out on property disposal Amortised government grant recycled Surpluses post FRS102 adjustments 60 Accord Group