Accounting treatment
I have an accounting treatment query which I have asked numerous Chartered Accountants who all manage to give a different answer. The question appears fairly simple though and that is:
A company is gifted £1m worth of assets which is material to its balance sheet - what is the accounting treatment??
The favourite approach appears to be to
Dr Fixed assets with the fair value of the assets
Cr Deferred income
And amortise over the life of the assets. Hence this takes a SSAP 4 approach.
Any opinions??
Paul Clarke
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- SAP Refresher Course 203
- SMP advanced funding 191
- Tasbooks 3 185
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- IHT and settlor interested trust 114
- List of international shareholders 111
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- Non-resident non-doms CGT and IHT on UK assets 59
- vat overseas 22
- Any catches here for the property purchasor? 13
- Is payment for buy-out of an employee benefit taxable? 13
I concur