The Registered Housing Associations (Accounting Requirements) Order 1988

2.  For article 6 (income and expenditure account), there shall be substituted–

“Income and expenditure account

6.— (1) The income and expenditure account shall show the following information–

(a) as income–

(i) rents (excluding service charges) receivable after deducting rates (including domestic water rates) recoverable from tenants and losses arising from vacant accommodation and bad debts;

(ii) service charges receivable;

(iii) grants and subsidies receivable from the Secretary of State or a public authority (distinguishing between payments for acquisition and development of housing accommodation and those for projects where completion has become impossible but excluding grant receivable under section 62 of the 1985 Act);

(iv) interest and dividends from investments;

(v) net surpluses from sales of property (including leases granted at a premium);

(vi) all other income;

(b) as expenditure–

(i) management expenses;

(ii) the costs of repairs and maintenance, including provision for future works;

(iii) service costs, showing separately those relating to hostels and those relating to other housing accommodation;

(iv) interest on loans attributable to housing land;

(v) depreciation equal to repayment of loan principal;

(vi) other depreciation;

(vii) amounts transferred to the Grant Redemption Fund;

(viii) administrative costs of acquiring and developing housing accommodation;

(ix) cost of housing projects where completion has become impossible;

(x) all other expenditure.

(2) The income and expenditure account shall also show–

(a) the gross surplus or deficit for the period of account, ascertained by deducting expenditure from income, but before deducting the tax or crediting the grant referred to below;

(b) the amount charged to revenue for corporation tax and income tax, together with grant receivable under section 62 of the 1985 Act;

(c) the overall surplus or deficit for the period of account, after deducting the tax and crediting the grant referred to in (b) above;

(d) amounts transferred to or withdrawn from reserves.

(3) All amounts shown in the income and expenditure account for the period of account shall be accompanied by the corresponding amounts for the preceding period (if any).”