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Accounting policy

I am preparing accounts for a limited company that acquired the freehold to a property. But I am unsure how I should word the turnover a/c policy.

There is no ground rent to be paid and on the completion of the enfranchisement of the freehold two 999 year leases will have been granted at peppercorn rent.

No service charges income (or costs for that matter) will go through the company's books as these will be handled separately by the freeholders and they will probably prepare separate service charge accounts.

Can the policy simply be "The company has no turnover" and be left at that?

Any advice greatly appreciated.

Regards

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12th Jul 2012 22:41

don't have one...

If there is no turnover then don't have a turnover note!

Just as if a company had no fixed assets you would not have a depreciation policy.

 

 

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13th Jul 2012 10:50

How much is a peppercorn?

If it is £1 or even, 1p, the company would have turnover, so I would modify Carl's comment to say that you only need to disclose the accounting policy on material items and hence, that you still do not need an accounting policy for peppercorn rental income.

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