Group Financial Statements 2012 - Riverside

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From 1 April 2011 all housing properties have been split between their land and structure costs and a specific set of major components which require periodic replacement. Replacement or restoration of such major components is capitalised and depreciated over the estimated individual useful economic life of the component as follows: Component Useful Economic Life (years) Structure – new build 100 Structure – rehabilitated 50 Kitchens 20 Bathrooms 30 Roof 60 Boiler 15 Full heating system 30 Windows and doors 25 Depreciation on non housing property stock is charged on a straight line basis over the expected useful economic lives of the assets at the following rates: Asset Useful Economic Life (years) freehold and long leasehold offices to residual value 15 fixtures and fittings 10 IT equipment 3 – 5 leasehold improvements over the term of the lease Assets in the course of construction are held at cost and are not depreciated until reclassified as housing properties completed. An annual impairment review of housing properties is undertaken in accordance with FRS 11 ‘Impairment of Fixed Assets and Goodwill’, and where appropriate the carrying value is adjusted to take account of permanent diminutions in value. 34
First tranche shared ownership sales Shared ownership properties are split proportionally between current and fixed assets based on the first tranche proportion. First tranche proportions are accounted for as current assets and the related sales proceeds shown in turnover. The remaining element of the shared ownership property is accounted for as a fixed asset so that any subsequent sale is treated as a part disposal of a fixed asset. Amortisation of goodwill Goodwill arising on the acquisition of subsidiaries represents the excess of the fair value of the identifiable net assets acquired over the fair value of the consideration given and is included in reserves. Goodwill is recognised in the income and expenditure account in the periods in which the non-monetary assets are recovered, whether through depreciation or sale. Improvements to property Expenditure incurred on general repairs to housing properties is charged to the income and expenditure account in the year in which it is incurred. Expenditure on refurbishment or replacement of identified housing property components is capitalised. Pre-contract costs Costs incurred in bidding for and securing contracts for the supply of products and services under the Private Finance Initiative are recognised as expenses incurred up to the date of announcement of preferred bidder. Where the <strong>Group</strong> is successful in attaining preferred bidder status, those costs incurred after attaining preferred bidder status that are directly attributable to the contract are recognised as an asset. Properties for sale Completed properties for outright sale and property under construction are valued at the lower of cost and net realisable value. Cost comprises materials, direct labour and direct development overheads. Net realisable value is based on estimated sales price after allowing for all further costs of completion and disposal. Social Housing Grant Where developments have been financed wholly or partly by Social Housing Grant (SHG) and other capital subsidies, the cost of these developments has been reduced by the amount of the grant received. SHG received in excess of current development costs is shown as a current liability. SHG received for items of cost written off in the income and expenditure account is matched against those costs. When properties are demolished, with the intention of redevelopment, a contingent liability is recognised related to the repayment of SHG. If a property is sold, SHG may be repayable but is normally available to be recycled and is credited to a Recycled Capital Grant Fund or Disposal Proceeds Fund and included in the balance sheet in creditors. Other grants Other grants are receivable from local authorities and other organisations. Capital grants are utilised to reduce the capital cost of housing properties, including land costs. Grants in respect of revenue expenditure are credited to the income and expenditure account in the same period as the expenditure to which they relate. Capitalisation of administration costs Administration costs relating to development activities are capitalised only to the extent that they are directly attributable to the development process and in bringing the properties into their intended use. Investments Fixed asset investments are stated at market value. Investment properties are carried at the lower of cost and net realisable value, and in accordance with SSAP 19 ‘Accounting for Investment Properties’ are revalued annually. Current asset investments are stated at cost. 35
Page 1 and 2: Financial Statements Year ended 31
Page 3 and 4: Highlights - five year summary 2 Th
Page 5 and 6: For the year ended 31 March 2012 20
Page 7 and 8: The key to delivering our high leve
Page 9 and 10: “Our Boards today follow traditio
Page 11 and 12: Operating and financial review The
Page 13 and 14: A fitter leaner Riverside Achieve b
Page 15 and 16: Capital structure and treasury poli
Page 17 and 18: More homes, fewer places The year h
Page 19 and 20: Report of the Board The Board is pl
Page 21 and 22: Corporate role of the Board The Boa
Page 23 and 24: — During the year there were no w
Page 25 and 26: Report of the independent auditors
Page 27 and 28: Group statement of total recognised
Page 29 and 30: Group cash flow statement for the y
Page 31 and 32: Association statement of total reco
Page 33 and 34: Notes to the financial statements*
Page 35: Retirement benefits The Group opera
Page 39 and 40: Charitable reserve This reserve rep
Page 41 and 42: 2 Turnover, operating costs and ope
Page 43 and 44: 3 Income and expenditure from socia
Page 45 and 46: 4 Directors’ and senior staff emo
Page 47 and 48: 6 Surplus on sale of property Group
Page 49 and 50: 9 Surplus on ordinary activities Gr
Page 51 and 52: 10 Tax on surplus on ordinary activ
Page 53 and 54: 11 Tangible fixed assets - continue
Page 55 and 56: 11 Tangible fixed assets - continue
Page 57 and 58: 12 Investments A. Fixed assets Name
Page 59 and 60: 12 Investments - continued B. Curre
Page 61 and 62: 14 Properties for sale Group 2012 2
Page 63 and 64: 16 Creditors: amounts falling due a
Page 65 and 66: 17 Debt analysis Group 2012 2011 £
Page 67 and 68: 18 Derivatives and financial instru
Page 69 and 70: 18 Derivatives and financial instru
Page 71 and 72: 21 Reconciliation of operating surp
Page 73 and 74: 25 Financial commitments At 31 Marc
Page 75 and 76: 26 Pension information - continued
Page 83 and 84: 27 Contingent liabilities As at 31
Page 85 and 86: 30 Related party transactions One B
Page 88:
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Group Financial Statements 2012 - Riverside

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