Service Charge Accounting; RICS Professional Statement

October 2018

In September 2018, the Royal Institute of Chartered Surveyors (RICS) brought out their latest guidance for service charges in commercial properties.

This guidance takes the form of a Professional Statement, which replaces the existing Code of Practice (3rd Edition).  It comes into force for properties with an accounting period that commences on or after 1 April 2019. Whilst much of the guidance remains the same as the Code of Practice, there are a number of updates that will affect those in the industry. This paper looks at the impact of some of the key changes on the service charge accounts, for a full understanding of the new guidance please refer to the Professional Statement.