How do you account for bookmakers
I have a potential new client who is a bookmaker.
Never been involved in this sector before and I need to know how you account for outstanding bets.
Lets say the year end is 31 Mar-13. Lets take two bets that I have tried to make the extremes.
Punter A has staked £500 on his son playing for England at 300:1 before 2020. Do you take £500 to the profit and loss account and ignore the potential liability or account for the bet as a "long term contract". The son will never play for England he only has one leg.
Punter B has bet £1,000 on Manchester United to win the league. The league ends on 19 May-13 but Manchester United are so far ahead, at 31 Mar-13, they really have to be bad to lose the title. Do you recognise the loss in the accounts or do you have to wait until they do win. It is not a known and certain situation at the year end but probable.
No silly football answers, no witty answers about value price(s) etc. Non Bob please.
- Spousal transfer and PPR 475 15
- Where has Portia gone? 1,080 46
- Rogue Accountant 2,951 49
- Performance measurement within accounting practice 213 4
- deceased creditor 116 5
- Corporate member of LLP 263 1
- Investment company 255 6
- Error or mistake in CT return 319 1
- Penalty on dormant CT600 prior to trading 196 1
- HMRC computer behind the times 355 3
- Sage & IRIS Payroll Employee ID. Problem Using Old Ee ID's? 80 1
- Transfer of stock 349 12
- Holiday entitlement 541 10
- Benefit in kind calc, s.106 ITEPA 339 7
- HMRC manual ESSM 188 1
- Extension of lease in flat management company 249 3
- Football Agent Fees 735 23
- Tax avoidance - Doyou know of a better approval? 646 4
- Thoughts on revenue recognition 500 14
- Dir optimum salary 15/16 1,425 22
- Services via intermediaries and new HMRC reporting requirements 778
- RTI - duplicate employee record 519
- Pensions Regulator 443
- How hard is it to reduce a code? 401
- Sanzar 299
- Sage Vat return box 2 299
- Digital marketing focus group 282
- How do you do it 267
- Kashflow balance sheet difference 235
- Report old income 234