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

Comments
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I concur

AnonymousUser |

Who made the gift.......

AnonymousUser |

Flippant comment

neileg |