Group Financial Statements 2012 - Riverside

“The financial statements have been
prepared under the historical cost
convention, and in accordance with
applicable United Kingdom Accounting
and Financial Reporting Standards
and the Statement of Recommended
Practice for Registered Social Landlords
issued in 2010”.
Liquid resources
Liquid resources are readily disposable current asset
investments, which include some money market
deposits, held for more than 24 hours that can only be
withdrawn without penalty on maturity, or by giving
notice of more than one working day.
Value Added Tax
The Riverside Group is partially exempt in relation
to Value Added Tax (VAT), and accordingly is able to
recover from HM Revenue and Customs part of the
VAT incurred on expenditure. At the year end VAT
recoverable or payable is included in the balance sheet.
Irrecoverable VAT is accounted for in the income and
expenditure account.
Taxation
The charge for taxation is based on the surplus or
deficit for the year and takes into account deferred
taxation arising from timing differences between the
treatment of certain items for taxation and
accounting purposes.
Leased assets
Rentals payable in respect of operating leases are
charged to the income and expenditure account
on a straight-line basis over the lease term.
Work in progress
Work in progress on developments for sale is stated
at the lower of cost and net realisable value.
Loan issue costs and interest payable
The cost of raising loans is amortised over the
period of the loan.
The deferred cost is offset against the liability and
included within creditors: amounts falling due after
more than one year, in accordance with FRS 4
‘Capital Instruments’.
Loan interest payable is charged to the income and
expenditure account at the relevant rates based on
the carrying amount of the debt.
Designated reserves
These represent reserves earmarked for a specific
use and are not part of free reserves.
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