identified an assessment for impairment is undertaken comparing the asset’s carrying amount to its recoverable amount. Where the carrying amount of an asset is deemed to exceed its recoverable amount, the asset is written down to its recoverable amount, which is likely to be the value in use of the asset based on its service potential. The resulting impairment loss is recognised as expenditure in income and expenditure. Where an asset is currently deemed not to be providing service potential to the association, its recoverable amount is its fair value less costs to sell. xvii Investments All investments are stated at fair value at the balance "All investments are stated at fair value at the balance sheet date. Changes in fair value arising from the revaluation of investments at each reporting date are recognised in the statement of comprehensive income. Investments that are intended to be held to generate returns for use on a continuing basis in the activities of Anchor Hanover Group are classified as fixed assets. Investments held as part of short-term treasury management for a planned expenditure purpose are Restricted reserves are funds received, the use of which is restricted by general law or by the terms on which the funds were given. These include funds where the donor has made a donation to be spent for a particular purpose or in a particular geographical area. Restricted reserves also relate to monies collected in advance for the replacement of assets at rental locations which are restricted in their use as defined within the individual tenancy agreements. xix Stock Stock comprises properties available for resale and goods for consumption. Goods for consumption are held at cost, which is considered to be a reasonable approximation to the lower of cost and net realisable value. Completed properties and properties under construction for open market sales are recognised at the lower of cost and net realisable value. Cost comprises classified as current assets. xviii Restricted reserves materials and direct overheads attributable to the development. Net realisable value is assessed using publicly available information and internal forecasts of future sales price after allowing for all further costs of completion and disposal. xx Positive goodwill Where the fair value consideration for an acquired business exceeds the fair value of its separable net assets, the difference is treated as purchased goodwill and is capitalised and amortised through the income and expenditure account over its estimated useful economic life. The estimated useful economic life of goodwill is five years. xxi Financial instruments Financial instruments which meet the criteria of a basic financial instrument as defined in section 11 of FRS 102 are accounted for under an amortised historical cost model.
Where SHG is received for properties in the course of construction and the amount received is in excess of the costs of construction incurred to date then the excess is shown as SHG received in advance in the statement of financial position within creditors: amounts falling due within one year. SHG is included in creditors in the statement of financial position and is amortised annually to the statement of comprehensive income over the expected useful lives of the assets to which they relate or in periods in which the related costs are incurred. The accumulated amortised government grants represent contingent liabilities and the contingent grant liability materialises when the relevant property to which the amortised grant relates ceases to be used for social housing purposes, usually due to the disposal of the housing asset. Government grants received for housing properties are subordinated to the repayment of loans by agreement with HE and the GLA. Government grants released on sale of a property may be repayable but are normally available to be recycled and are credited to a recycled capital grant fund and included in the statement of financial position in creditors. If there is no requirement to recycle or repay the grant on disposal of the asset, any unamortised grant remaining within creditors is released and recognised as income in income and expenditure. Social housing grant becomes recyclable at the point the related property is sold and is transferred to a recycled capital grant fund until it is reinvested in a replacement property. If there is no requirement to recycle or repay the grant on disposal of the assets any unamortised grant remaining within creditors is released and recognised as income in the statement of comprehensive income. Grants which cannot be recycled are returned to the funder. xiv Other grants Grants received from non-government sources are recognised using the performance model. A grant which does not impose specified future performance conditions is recognised as revenue when the grant proceeds are received or receivable. A grant that imposes future performance-related conditions on the association is recognised only when these conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability. xv Other tangible fixed assets All other tangible fixed assets are included at cost less depreciation. Depreciation is provided on a straight line basis on the cost of the asset less the estimated residual value on all
tangible fixed assets except land. The asset lives used are as follows: Motor vehicles: Computer equipment: Office equipment and fittings:
four years three years five years
xvi Impairment Housing properties, other assets and goodwill are assessed for impairment indicators annually. Where indicators are
76 Anchor Hanover Group Annual Report & Financial Statements 2024
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