Accounting policies
The principal accounting policies are set out in note 1 to the Financial Statements. The most critical accounting policies in terms of impact
on the financial statements are the treatment of fixed asset component replacements, depreciation, capital grants, and the capitalisation
of interest and development staff costs within housing properties. Where necessary and appropriate accounting policies have been
updated to ensure the requirements of the International Accounting Standards under FRS102 are met.
Principal accounting policies have been updated to include significant accounting judgements and estimates that management have
made which have the most significant effect on the amounts recognised in the financial statements. Significant judgements relate to the
impairment of housing property fixed assets, the treatment of financial instruments where loans contain early repayment clauses and the
impairment of investments and goodwill. Accounting estimates relate to the useful lives of depreciable assets where management reviews
its estimate at each reporting date based on the expected utility of the assets.
Charitable donations
The Group made donations to charitable organisations of £2,279 during the year (2015: £6,003).
Statement of responsibilities of the Board
The Board is responsible for preparing the Report of the Board and the Financial Statements in accordance with applicable law and
regulations. The Co-operative and Community Benefit Societies Act 2014 and registered social landlord legislation requires the Board
to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in
accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable laws).
Under this legislation the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of
the state of affairs and surplus or deficit of the association and group for that period. In preparing these financial statements, the directors
are required to:
n select suitable accounting policies and then apply them consistently;
n make judgements and accounting estimates that are reasonable and prudent;
n state whether applicable UK Accounting Standards and the Statement of Recommended Practice (SORP) Accounting by Registered
Housing Providers Update 2010), have been followed, subject to any material departures disclosed and explained in the financial
statements.
The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the Group and Association and enable it to ensure that the financial statements comply with the Co-operative and Community
Benefit Societies Act 2014, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of
Social Housing 2012. It is also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Board is responsible for the maintenance and integrity of the corporate and financial information on the Group’s website. Legislation in
the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Disclosure of information to auditors
In so far as each of the directors is aware:
n there is no relevant audit information of which the Association’s auditors are unaware; and
n the directors have taken all steps that they ought to have taken as directors in order to make themselves aware of any relevant audit
information and to establish that the auditors are aware of that information.
66
Accord Group