Accounting for Service Charges

We are preparing a set of accounts for a resident management company- that receives in maintenance charges on behalf of tenants and then pays out maintenance expenses etc.

We are aware that the income and expenditure should not be shown in the resident management company's set of accounts, as they are holding any monies received on trust. Any bank balances are also not owned by the company and should not be shown.  

Basically, does that mean for Companies Limited by Guarantee, that they will have zero on their balance sheet and income and expenditure reports?

We propose attaching an appendix for the service charge accounts. I believe guidelines were going to be published to say how these service charge accounts should be produced, but due to a new government this won't be implemented in the short term (if ever). Therefore, can we produce the appendix in whatever way we want, and there are no actual statutory requirements?

I intend just attaching an income and expenditure and balance sheet, with no associated notes?

Many thanks.  

 

Jason Waters

Comments
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Please clarify type of management company

LisaDeering |

resident company

ROTHMANSACCOUNTANT |

Grey area

Euan MacLennan |
Euan MacLennan's picture

Service Charges Deemed to be held in Trust

lisler |

ARMA

Paul Scholes |
Paul Scholes's picture

Client's bank say I am talking rubbish!

taxhound |
taxhound's picture