For those interested, the FRC have recently released a draft of FRED 50
http://www.frc.org.uk/Our-Work/Publi...gemen-File.pdf
which covers the accounting principles for the statutory accounts of RMCs (NB *not* the service charge accounts themselves). At first glance it seems to add little to the previous UITF 49, in that (in very brief summary) it formalises the accounting treatment of service charge cash (i.e. it's not an asset of the company) and expenses defrayed by the RMC on behalf of leaseholders (accounted for as normal on an accruals basis) and associated income (recognised as an equal and opposite "drawdown" and *not* as billed to leaseholders).
All in all it seems very sensible to me, and to reflect true substance over form, though judging by the reaction of some in the profession (accountants and property managers)to the previous version it will cause a lot of consternation.
A
http://www.frc.org.uk/Our-Work/Publi...gemen-File.pdf
which covers the accounting principles for the statutory accounts of RMCs (NB *not* the service charge accounts themselves). At first glance it seems to add little to the previous UITF 49, in that (in very brief summary) it formalises the accounting treatment of service charge cash (i.e. it's not an asset of the company) and expenses defrayed by the RMC on behalf of leaseholders (accounted for as normal on an accruals basis) and associated income (recognised as an equal and opposite "drawdown" and *not* as billed to leaseholders).
All in all it seems very sensible to me, and to reflect true substance over form, though judging by the reaction of some in the profession (accountants and property managers)to the previous version it will cause a lot of consternation.
A