Recycled Capital Grant Fund
Grants repayable on property disposals are calculated in
accordance with relevant Homes England procedures and
included within a Recycled Capital Grant Fund. Interest is
credited to the fund and calculated on a daily basis with the
interest rate being determined by the level of total deposits.
The fund can be used in the same manner as a new project
funded with Social Housing Grant with certain permitted uses.
It is intended to use the fund in the provision of either new social
housing for rent and/or housing for sale on shared ownership
terms or to supplement the major repair programme. Grants
are repayable in certain specific circumstances including
where the Homes England concludes that the Association is
unlikely to use the fund for a permitted purpose within three
years. The fund is included within long term creditors.
Disposal Proceeds Fund
Net proceeds from the disposal of property under voluntary
purchase grant and statutory right to acquire legislation and
regulations are included within a disposal proceeds fund. Interest
is credited to the fund and calculated on a daily basis with the
interest rate being determined by the level of total deposits.
The fund can be applied for specific purposes ranging from
acquisition of dwellings for letting, to repairs or improvement of
vacant dwellings or buildings otherwise subject to demolition.
The fund may be repayable at the discretion of the Homes
England, in certain specific circumstances. The fund is included
in long term creditors.
Other long term creditors
Other long term creditors include the costs of arranging long
term funding. These amounts are amortised over the period
of the underlying financial instrument. Loan termination costs
are charged to the Statement of Comprehensive Income in the
year in which they are incurred.
Provisions for liabilities
Provisions are recognised when:
a) There is a present obligation as a result of a past event;
b) It is probable the Association will be required to settle the
obligation; and
c) A reliable estimate of the obligation can be made.
Where the effect of the time value of money is material, the
amount expected to be required to settle the obligation is
recognised at present value using a pre-tax discount rate. The
unwinding of the discount is recognised as a finance cost in
the Statement of Comprehensi