I have an accounting treatment query which I have asked numerous Chartered Accountants who all manage to give a different answer. The question appears fairly simple though and that is:
A company is gifted £1m worth of assets which is material to its balance sheet - what is the accounting treatment??
The favourite approach appears to be to
Dr Fixed assets with the fair value of the assets
Cr Deferred income
And amortise over the life of the assets. Hence this takes a SSAP 4 approach.