I have recently taken on a new client who is a management consultant with a turnover of under £100k. The income is generated in the UK and the accounts are very straight foward apart from the fact that the client has made six seperate payments for the purchase of shares in a private company registered in Kenya with a view to a possible joint venture in the future. The total investment at the year end is is just under £50k.
I intend to show this as a fixed asset investment (unlisted) with an appropriate accounting policy for permanent diminution in value.
My questions are:-
1) I have seen a certificate of incorporation for the company in Kenya and letters from that company confirming the 'increase in holding'. The directors will confirm the transactions in a letter or rep. Do I need to verify these transactions further in anyway and if so how? I assume that share certificates would cover it. Does anyone know how to go about a companies search in Kenya?
2) Are there any other accounting, disclosure or corporation tax points that should be considered.
Thanks in advance.