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