In 2011 a joint working group comprising of representatives from ICAEW, ACCA, ARMA and RICS came together to produce the technical release 03/11 for residential service charge accounts (TECH 03/11). This release was very much welcomed and duly adopted by the professional firms working in this field as best practice for how residential service charge accounts should be prepared and reported on.
In September this year, another working group was formed comprising of representatives of ICAEW and RICS to provide new guidelines for the best practices for accounting for commercial property service charge accounts. This document is known as Technical Release 09/14 (TECH 09/14) and only applies to wholly commercial developments. Where there are mixed tenure properties then (Tech 03/11) still applies.
The introduction of (TECH 09/14) allows far greater consistency when commercial accounts are prepared and reported on. Previously, the format and preparation of these service charge accounts only had the terms of the lease to follow, whereas residential service charge accounts did and still have the Landlord and Tenant Act to adhere to, which does offer some accounting structure.
Here at Haines Watts Service Charge HQ, we’re very pleased with the guidelines and have embraced the new best practices ensuring that these will be implemented for all of our commercial service charge account clients.
For full details on the new (TECH 09/14) release or (TECH 03/11) please visit our Technical Library or give one of the team a call on (01462) 813355. We’d love to hear from you.
For advice, information or simply a quick chat about your service charge needs, please get in touch using our contact form