b'CHP financial statements 2020/2021Notes to the financial statements 1Legal statusDisclosure exemptionsliquidity - we have 119m of committed undrawnFor housing properties, the assets are broken down into The individual accounts of Chelmer Housing Partnershipfacilities available for immediate drawing and 42.1mcomponents based on managements assessment of the Chelmer Housing Partnership (CHP) is registered under theLimited have adopted the following exemptions availablecash in hand, representing total available liquidity ofproperties. The identification of such components is a Co-operative and Community Benefit Society Act 2014under FRS 102. 161.1m. These resources are considered sufficient tomatter of judgement and may have a material impact on and is registered with the Regulator of Social Housing asfund 30 months worth of commitments.the depreciation charge. The components selected are a non for- profit registered provider of social housing asThe requirement to present an individual statement of The Group has not suffered significant negative financialthose which reflect how the major repairs to the property defined by the Housing and Regeneration Act 2008.cash flows and related notes. impact because of COVID-19. As part of the going concernare managed. We have three wholly owned subsidiaries; Myriad CapitalCertain financial instruments disclosures as equivalent assessment and conclusion, the continuing effects ofFor impairment purposes, as explained in the accounting PLC (MYC), which is the groups financing company,disclosures have been provided in respect of the COVID-19 and post Brexit transition have been consideredpolicies, housing properties are reviewed at the reporting Myriad Homes Ltd (MHS), established for the purpose ofGroup as a whole. in the Groups forecasts and factored into the stress testdate for indicators of impairment. A judgement is made on progressing profit-making commercial opportunities forDisclosing the aggregate remuneration of the keycarried out, including any mitigation actions that maythe impact of those indicators on either the future cash reinvestment in our core activities and Myriad Housing Ltdmanagement personnel as equivalent disclosures havebe required.flows or, for assets held for their service potential, their (MHD), which lets and manages housing development onbeen provided in respect of the Group as a whole.The Board therefore believe the Group and company hascarrying value. our behalf. All three subsidiaries are registered under thesufficient funding in place and expect the Group to Government grants received for housing properties are Companies Act 2006.The principal accounting policies are set out below.follow its debt covenants even in severe but plausiblerecognised in income over the useful life (as identified Going concerndownside scenarios.for the depreciation charge) of the housing property on a 2Accounting policiesstraight-line basis under the accrual model. The financial statements have been prepared on aOn this basis, the Board are confident that the Group and Basis of preparationgoing concern basis which the directors consider to becompany will have sufficient funds to continue to meet Shared ownership The financial statements have been prepared on a goingappropriate for the following reasons.its liabilities as they fall due for at least 12 months from The allocation of costs for shared ownership properties concern basis, in accordance with UK Generally AcceptedThe Group prepares a 30-year business plan which isthe date of approval of the financial statements and including those under construction are split between fixed Accounting Practice (UK GAAP) including Financialupdated and approved on an annual basis. As well astherefore have prepared the financial statements on aassets and current assets. The split is determined by the Reporting Standard 102 (FRS 102) and the Housingconsidering the impact of several scenarios on the businessgoing concern basis. Judgements and key sources of percentage of the property sold under the first tranche SORP 2018: Statement of Recommended Practice forplan the Board also adopted a stress testing frameworkestimation uncertainty.disposal and the remainder retained by the company Registered Social Housing Providers and comply with theagainst the base plan. The stress testing impacts wereIn the process of applying the Groups and companyswithin its social housing property, plant and equipment. Accounting Direction for Private Registered Providersmeasured against loan covenants and peak borrowingaccounting policies, management has made certainThe proportion expected to be sold under the first tranche of Social Housing 2019. They are prepared under thelevels compared to agreed facilities, with potentialjudgements that have a significant impact on the financialdisposal is recognised as inventory in current assets. historical cost convention unless otherwise stated in themitigating actions identified to reduce expenditure.statements. These are detailed below:Useful lives of depreciable assets relevant accounting policy note(s). As a public benefitFollowing the COVID-19 pandemic the Group hasDefined benefit pension obligation entity, we have applied all paragraphs of FRS 102 whichundertaken a series of further scenario testing includingManagement reviews the estimate of the useful lives of relate to public benefit entities in preparing the financialsevere but plausible downsides in the In determining the valuation of the Groups pensiondepreciable assets at each reporting date based on the statements. The financial statements are presented worst-case assessment.schemes assets and liabilities, several assumptions areexpected utility of the assets including any components. in Sterling ().The Board, after reviewing the Group and companymade around factors that are uncertain. These includeUncertainties in these estimates relate to obselet Segmental reportingbudgets for 2021/2022 and the Groups medium termlife expectancy, inflation rate, discount rates and salarytechnology that may change the utility of certain software financial position as detailed in the 30-year business planand pension inflation rates. The Group is exposed to riskand IT equipment and changes to the Decent Homes For segmental reporting, the Chief Operation Decisionincluding changes arising from the COVID-19 pandemic, if the actuarial assumptions differ from actual experienceStandards which may require more frequent replacement Maker (CODM) is the Board. In line with the segmentsis of the opinion that, taking account of severe butand through volatility in the plan assets. More detail isof key components. reported to the CODM, the presentation of these financialplausible downsides, the Group and company havedisclosed in note 28.Basis of consolidation statements and accompanied notes reflect the Groupsadequate resources to continue in business for theFair value measurement management and internal reporting.foreseeable future.These financial statements are the result of the The information reviewed within the managementFinancial instruments are fair valued at each period end.consolidation of the association and the following accounts to assess performance and make strategicTo reach this conclusion, the Board have considered:Assumptions are made using market observable inputs subsidiaries during the year ended 31 March 2021: decisions is consistent with and closely aligned to thesethe property market - budget and business planand data. The directors have opted to apply IFRS 9 insteadMyriad Housing Ltd. financial statements. Segmental reporting is presented inscenarios have taken account of delays in handovers,of FRS 102 for the recognition and measurement ofnote three to the financial statements where informationlower numbers of shared ownership property sales,financial instruments.Myriad Homes Ltd. about income and expenditure attributable to the materialreductions in sales values and potential conversion ofFixed assets and impairmentMyriad Capital PLC. operating segments are presented based on the tenureshared ownership sale to social homes;Fixed assets are reviewed annually for evidence ofUniform accounting policies have been adopted across the type of the housing assets held by the group.maintenance costsbudget scenarios have beenimpairment. Impairment indicators are set out later inGroup, and surpluses/deficits and balances on intra group This is appropriate based on the similarity of the servicesmodelled to take account of cost increases and delaysthese policies.transactions have been eliminated on consolidation.provided, the nature of the risks associated and the naturein maintenance expenditure, with major works beingThe basis of valuation of assets is discounted cash flows of the regulatory environment in which the phased into future years;and includes the deemed cost based on the valuations as Group operates.rent and service charge receivablearrears and badat 31 March 2014 with a split between land and buildings. Assets and liabilities are not reported by operatingdebts have been increased to allow for customer segment of tenure, other than housing properties whichdifficulties in making payments and budget and business are split by tenure type and are shown in note 12.plan scenarios to take account of potential future reductions in rents; 48 49'