As part of the Housing Revenue Account (HRA) self-financing
settlement in 2012, substantial changes were made to the accounting
treatment of capital assets in the HRA. The DCLG has issued a
consultation on proposals for treatment of "impairment charges" in
View the consultation paper.
A five year transitional period was put in place to help local
authorities manage the impact of these changes by allowing them to
"reverse out" impairment charges.
This consultation contains proposals on how these items should
be treated in the HRA after the transitional period ends in March
2012. It proposes to:
- Continue to allow impairment charges to be "reversed out" of
the HRA following the end of the transitional period.
- Extend the principle to non-dwelling assets in the HRA from
- Confirm that depreciation should be charged to the HRA in
accordance with proper accounting practices.
The consultation period ends on Friday 8 July
ARCH is interested in the views of its members on this issue. If
your council intends to submit a response, please copy your
response to Matthew.Warburton@arch-housing.org.uk.