accounts disclosure

accounts disclosure

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client company is a loss making retailer, during last financial year the director undertook some consultancy work (using the limited company to invoice) to help support the company from insolvency - should this consultancy income be included in turnover or included as "other operating income"

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By carnmores
10th Dec 2010 19:42

what are the objects of the company - if its an old company

if it is general trade i would put it in turnover otherwise in other income - not sure how much of a difference it makes you could of course show a separate column in the PL of continuining and non continuing operations tho its not necessary at that companys size i would expect

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By nick farrow
12th Dec 2010 16:34

thanks Carnmores

actually it's pretty clear from the book Preparing Company Accounts 10/11 that's the disclosure is driven by what are the principal activities of the company - and as consultancy services have now become a principal activity the income generated will be included in t/over.

thanks again

 

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Euan's picture
By Euan MacLennan
12th Dec 2010 18:55

Turnover

Amend the Directors' Report to disclose consultancy as a principal activity.  On the next Annual Return to Companies House, include an appropriate SIC code for consultancy.  Include the consultancy fees in turnover.

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