As part of the Housing Revenue Account (HRA) self-financing
settlement, substantial changes were made to the accounting
treatment of capital assets. 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.
On Tuesday 24 January, the Department for Communities and Local
Government issued a new Item 8 Credit and Debit
Determination specifying how these items should be treated
in the HRA after 1 April 2017 when the original transitional period
The impact of the new determination is difficult to assess but
may be significant for some authorities.
ARCH would like to hear from any authority that is likely to be
adversely affected by these changes so that representations may be
made to government if necessary. Please email your comments on the
Determination to firstname.lastname@example.org.