Introduction
The Financial Reporting Council (FRC) issued a revised version of Financial Reporting Standard (FRS) 102 which will apply to accounting periods commencing on or after 1 January 2026. This will be supported, where available and subject to consultation, by an updated Housing Statement of Recommended Practice (SORP).
SHR can also require RSLs to adhere to additional accounting and disclosure requirements over and above those required by FRS 102 and the Housing SORP by issuing a Determination of Accounting Requirements (the Determination). In light of the changes in the revised FRS 102, especially lease accounting and revenue recognition, we have taken the decision to review the content of the Determination to ensure that the required disclosures remain appropriate and relevant.
The ability to issue a Determination is set out Section 68(1) of the Housing (Scotland) Act 2010 (the Act). Section 68(3) of the Act specifies that a consultation must be undertaken before making, withdrawing or revising a Determination as well as specifying who must be consulted. Section 68(5) of the Act specifies that the Determination must not relate to a period beginning before it is published. As the effective date for FRS 102 is 1 January 2026, we will aim to publish the updated Determination in advance of that date to ensure that it applies from the same date.
Giving us your feedback
We welcome feedback on our proposals from organisations and individuals with an interest in our work by 14 November 2025. We welcome general feedback on our proposals as well as answers to the specific questions we have raised. The specific questions are set out in Appendix 1. Please do not feel you have to answer each question unless you wish to do so. You should send your feedback by email to consultations@shr.gov.scot or by post to Scottish Housing Regulator, 5th Floor, 220 High Street, Glasgow, G4 0QW.
To help make this a transparent process we intend to publish on our website the responses we receive, as we receive them. If you do not wish your response to be made public please let us know. If you are responding as an individual please let us know if you are happy for us to publish your name.
Our proposals
The consultation will cover the following guidance notes:
- The Determination of Accounting Requirements.
- Financial Viability of RSLs.
- Preparation of Financial Statements.
- Statement of Internal Financial Control.
A detailed summary of the changes to the Determination can be found in Appendix 2 and a tracked changes version of the Determination in Appendix 3. A clean, final version of the Determination is available in Appendix 4. These revisions are intended to improve the understanding and usefulness of the financial statements for RSLs and those who read the financial statements.
To reduce the number of separate guidance notes we issue, we propose to incorporate the requirements from both the Preparation of Financial Statements and Statement of Internal Financial Control into the Determination. While the Statement of Internal Financial Control guidance is advisory, compliance across the sector is already high, so this will not increase the disclosure burden on RSLs. Copies of the current versions of the 2 guidance notes can be found in Appendices 5 and 6 respectively.
There are only minor changes to the Financial Viability of RSLs guidance note. A version showing these as tracked changes is in Appendix 7.
Impact assessments
We have carried out an internal Equalities Impact Assessment which we will review at the conclusion of the consultation.
What happens next
Once we have reflected on the feedback, we will publish final versions of the Determination and supporting guidance before 31 December 2025. This will allow the effective date to be in line with the effective date for FRS 102.
Appendix 1 - Consultation Questionnaire - (Word)
Appendix 2 - Summary of Changes to Determination
Appendix 3 - Determination - Tracked Changes Version
Appendix 4 - Determination - Clean Version
Appendix 5 - Preparation of Financial Statements - To be withdrawn
The following guidance document is to be withdrawn:
Preparation of financial statements | Scottish Housing Regulator
Appendix 6 - Statement of Internal Financial Control - to be withdrawn
The following guidance document is to be withdrawn: Internal financial controls and Regulatory Standards | Scottish Housing Regulator
Appendix 7 - Financial Viability of RSLs - Tracked Changes Version
Appendix 7 - Financial Viability of RSLs - Tracked Changes Version