Yorkshire-based Broadacres Housing Association has chosen Asset4000 from Real Asset Management to manage its £160 million housing assets in line with the Statement of Recommended Practice (SORP) for component accounting.
Richard Armitage, financial performance manager, Broadacres Housing Association, said, “At the moment we have a housing management system, but we knew that we would inevitably need to adhere to SORP guidelines and wanted a system for that specific purpose.
“It was important that we bought a solution that was not only SORP compliant but had the ability to streamline our business. RAM appeared to have a strong knowledge of SORP guidelines and the changing landscape of housing associations, vital when selecting a partner for a task of this scale.”
Under the new component accounting scheme, anything replaceable in Broadacres’ 5,000 properties must be treated as a separate asset, resulting in the housing provider’s asset register multiplying from around 5,000 records to over 35,000 records.
Armitage said, “Dividing our already extensive asset register into components will be time-consuming. However, by implementing Asset4000 now, we hope to streamline this process and have the SORP-compliant system ready before the proposed deadline. In doing so, we hope to see a smooth transition to component accounting in the coming months.”
The Asset4000 system is designed to help with component accounting and IFRS compliance for housing providers and local authorities, with features including generation of revaluation reserve entries, calculation of historic and revaluation depreciation, maintenance of audit trail records on historic impairment and component valuations and accounting.