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Re the article about financial reportinng can we revalue intangibles

Re the article about financial reportinng can...

we have a ltd co client that wishes to revalue its database to a substantial sum in the light of offers received for the company - under FRSEE i am not sure  that this is allowed - any suggestions as to what to do most welcome

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By ChrisDL
12th Oct 2010 09:12

A bit more information please?

I'm not sure what it is that they are trying to revalue - is it a database application of some sort that they have created or are they effectively talking about their client list?

If it is the latter than they are really talking about internally generated goodwill and they can't revalue that

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12th Oct 2010 12:32

thanks

it is a lot more than a client list , it contains huge amounts of non client information - there are reasons for revaluation tho as you intimate one has to tell the diretors to be careful - if the directors disagree and revalue then i presume that a note saying that they have strayed from FRSEE should be made

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By ChrisDL
12th Oct 2010 12:56

At the very least

I think whether the company was FRSSE or non FRSSE, I have some concerns about whether a revaluation of any kind would comply with UK GAAP particularly as it is something the directors have largely created and are now attributing a value to - it is not a building or a piece of land where you are asking an external expert for a view.

In terms of disclosure, you should certainly consider a reference in the basis of accounting section of the accounting policies note as well as the intangibles section and you should think carefully about what report, if any, you are attaching to them

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12th Oct 2010 13:36

thank you

point taken

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