Given the recent technical guidance from ACCA/ICAEW and UITF information sheet 92 can someone please confirm my thoughts.
I have a residents management company which owns the freehold with a statutory year end of 30 June. The lease states service charge accounts should be prepared to 31 March.
Following the UITF I understand that the RMCo is acting as principal and therefore the statutory accounts should include only the ground rent received and corporation tax thereon. Service charges and associated expenditure needs to be included in the service charge accounts to the date specified in the lease ie 31 March.
Both ground rents and service charges are collect via one bank account. I therefore assume that in the statutory accounts there needs to be net debtor to the service charge accounts until the ground rents are collected (ie CR Ground rent (SAY) £1,000, DR Corporation tax (SAY) £200, Debtor to balance (SAY) £800.
Have I missed anything?