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Directors loan account disclosure

How are you all disclosing the movements on directors' loan accounts?

Typically a director will have multiple withdrawals ( and possibly credits ) taking the account in and out of credit/debit.

Is it really necessary to show each and every transaction?

It would appear so under the CA 2006.

This particular company has three directors and every month they will pay amounts for personal expenses on credit card, take more than the net salary due, pay some private payments from bank and sometimes pay money in or take less than salary due! I have up to now disclosed the balance outstanding at the end of the year (and PY) and the maximum amount OD. However looking at Digita notes and the disclosure tab it would appear that each individual transaction is required for all three directors.

Please someone tell me I am wrong!

And before anyone says it - yes I do tell directors not to use the company as a piggy bank.

Would it be acceptable to list monthly net withdrawals:

Jan £250

Feb £500

Jun £800

etc

Thanks for any replies

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Well on VT ...

you just have can show different types of loans and the movements in each. However, I just call one of them 'Current Account' and show one entry for payments and one entry for repayments. I am sure that nothing more was intended.

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30th Sep 2011 15:16

Whatever may have been intended ...

No-one complies with the strict Companies Act requirement to disclose every single advance and every single repayment.  As Steve H says, assuming that it is a loan to the director, disclose the total advances and the total repayments in the year, along with the opening and closing balances, the maximum balance during the year and the terms (usually, no interest and repayable on demand).

If the balance is not overdrawn at the end of the year, you do not need to disclose anything except the related party transaction under the FRSSE - balance with comparatives and terms.

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22nd Nov 2011 14:52

Maximum balance

In connection with this, can I ask about the requirement to disclose the maximum overdrawn balance during the year.  Our accounts production software no longer offers this option (the boxes are 'greyed out').  Is this disclosure no longer required?

 

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22nd Nov 2011 15:10

I have just answered my own question ,above!  For those who are also wondering :

 

http://www.icaew.com/en/members/practice-resources/news/disclosure-of-directors-loan-accounts-a-pragmatic-approach 

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