Monies owed to directors - disclosure in abbrev a/c

Monies owed to directors - disclosure in abbrev...

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I am preparing abbreviated accounts for a company that acquired a freehold title. The value of the freehold is a TFA and the credit balance is in Creditors > 1 year. This creditor is effectively the money paid by the two freeholders, one of whom is the company's director.

As a director is owed half of this money does it need to be disclosed in the accounts? Can I just call them Other Creditors in the Creditors note but do I then need a Related Party transaction disclosing the value that is owed to the director?

Any advice greatly appreciated.

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Euan's picture
By Euan MacLennan
17th Jul 2012 13:39

Several points
You cannot just prepare abbreviated accounts.  The legal requirement on the directors under s.394 CA 2006 is to prepare "individual" " accounts, which are the full statutory accounts.The individual accounts would be prepared under the FRSSE, which requires the disclosure of transactions with related parties and defines directors as related parties, so you would have to disclose the name of the director and the loan outstanding at the year-end in the full statutory accounts.The FRSSE does not apply to abbreviated accounts.  The only notes which have to be included in abbreviated accounts are the accounting policies, the fixed assets and the share capital.

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Replying to TomHerbert:
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By mlindup
17th Jul 2012 14:27

Thanks for your comments Euan

I am filing abbreviated accounts as the company meets the requirements as a small company. So following on from point 3 I take it no need to disclose the balance owing to the director as a RPT?

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Replying to TomHerbert:
By kenny achampong
17th Jul 2012 14:42

Re your point (3) Euan. The reason why I and presumably others worry about this is when you file online, the directors notes are there in their template and as far as I can see, you can't delete them. If I do have to file online, I just leave them blank. So I'm glad to hear that probably is correct. 

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Euan's picture
By Euan MacLennan
17th Jul 2012 15:30

Further points

@mlindup

Perhaps, I wasn't clear with my first reply.  You should prepare the full statutory accounts for the shareholders (yourself and the other tenant), but as a small company, you are allowed to file abbreviated accounts on the public record at Companies House.  And Yes - the abbreviated accounts do not need to include a related party note.

 

@kenny

It is a while since I filed accounts online using WebFiling, which I assume is what you are talking about (we use direct filing from our accounts software).  Is that the template which still refers to the FRSSE 2007 and has to be amended to 2008 every time?  All I can say is that you do not have to disclose loans from directors in abbreviated accounts, but you do have to disclose loans to directors, which is a Companies Act, not FRSSE, requirement.

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By Olando
11th Aug 2012 19:04

Comment deleted

 

 

 

 

 

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