A consultation on changes to the Accounting Direction

Posted: 13/10/2021

The Regulator of Social Housing (RSH) has undertaken a consultation on proposed tweaks to accounting requirements for registered providers of social housing (RPs). The RSH’s Accounting Direction sets out the minimum information that RPs must include in their financial reporting.

Following changes to the RSH’s Accounting Direction in early 2019, the RSH committed to further examine recurring issues. The latest changes proposed relate to:

• the removal of any direction relating to the Disposal Proceeds Fund, which ceased to exist in April 2020;
• providing further clarity and explanation of the requirements for segmental reporting – where organisations include breakdowns of the performance of different aspects of their business in financial results; and
• some amendments and clarifications on value for money narrative reporting requirements.

The Accounting Direction does not apply to local authority landlords. However, it is applicable to all other RPs including for-profit RPs (in respect of their social housing activities).

The consultation closed on 21 September 2021. Any changes resulting from the consultation will take effect for accounting periods from 1 January 2022 but early adoption will be encouraged by the RSH.

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