This might be cheeky, what do you think?
I'm of the awkward generation who studied under IFRS but trades within the UK GAAP regime and I am unsure if I may be confusing the two here. I have checked the FRSSE (briefly) re the below scenario to no avail.
I have a client purchased a building with some rather nice credit terms; £250k in £500/wk instalments with only £35k down. Repayment is 8.26923077 years.
Of course, to recognise the building and corresponding loan amount and subsequent payments would be straightforward enough. But we're accountants; that's not good enough!
My plan/ploy is the time value of money over that 8 year period.
My question is:
If I effectively "Fair Value" that liability, assuming 3.5% inflation pa for example (which I calculate as £161,768.24 starting point) and subsequently recognise the unwinding of the liability as interest income... Is this then a legitimate deductible finance expense under any head of tax?
If you need reference material see p. 161 Appendix 3 of the FRSSE which details the above scenario as applied to a provision.
Any input whatsoever would be gratefully received.
- Accounting Web - What is happening? 1,819 43
- Do you use commercial software for Self Assessment tax returns? 436 16
- Time to ditch Sage? 297 5
- Losses carry forward to self employed 67 1
- Fees 329 3
- Agent Authorisation Issue 254 3
- HMRC Post 540 7
- Transactions with directors 454 3
- CT600 - Credit balance in expenses? 292 9
- Non VAT invoices 217 4
- Travel is part allowable if combined with personal holiday 218 2
- Client in dispute with Customer over cancellation charge 1,401 32
- Correcting earlier year CT600s 262 5
- ACCA Special Business Resolutions... 233 2
- Form 17 Download 169 1
- Claiming VAT on car lease 567 28
- Small hotel - food for personal use 387 4
- HMRC Information notice 1,000 24
- Recommendations for online payroll software 288 3
- Accountant Specialization. 406 5
- Chart of account segments; Balance sheet vs P&L 765
- Any knowledge of salesorder.com 416
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 366
- Electric Car 302
- S222 Charge 245
- Corporation tax penalties and fines on the CT600 212
- IP trans to holding company 196
- Software to Deal with Amazon and Ebay Sales 185
- AIA 181
- Best way to convert Sage data to VT Transaction+ 180