I have a client that invested in a couple of LLP tax schemes, the initial investment was recorded at cost in the accounts but we're now a couple of years down the line, HMRC are now finally enquiring into the scheme and it appears reasonable to revalue or carry out an impairment review, effectively reducing say a £100k investment down to £1.
In my 18 years of small practice accountancy experience, I've never had a client that has required an impairment loss, nor have I seen a set of accounts that has one. Are the accounting entries simply credit investment (balance sheet), debit impairment loss (P&L, presumably as an exceptional item)?
I use VT Final Accounts and there aren't any default nominal ledgers for the above. In respect of the balance sheet credit entry, presumably I need to create an 'impairment loss' code?
I would also make some suitable disclosure notes explaining the reasons for the impairment.
The theory is understood, I'd just like confirmation in respect of the practical aspect, so any guidance/confirmation or a pointer to a set of accounts that has an impairment loss would be appreciated.