Mortgage Application

Mortgage Application

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A now non resident client has asked for management accounts to end August'14 to give to their broker.They have also advised that they intend to wind the UK company up in December this year.I feel this is material and should be disclosed on the accounts. Am I right?

Thanks for any input.

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By duncanedwards
25th Sep 2014 16:49

Not sure there is any particular format or disclosure requirements for management accounts.

Would the winding up of the business have any material impact on the amount at which assets or liabilities are stated?

When are the accounts to be finalised? There are still 3 months until the end of the year.

I assume the lender will be circumspect enough, especially if the borrower is not a UK resident.

Unless you suspect some fraud or deception, I'm not sure what the problem is. If you do, you obviously need to report appropriately.

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Replying to Spacedust:
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By Lass
25th Sep 2014 17:54

Thanks for that.The broker is also abroad as is the intended property.My main concern was that the lender probably isn't aware of the company ceasing to trade after December.My client's view is that they have sufficient savings to cover any mortgage for a year while they seek other employment.The only assets/liabilities at year end will be cash, directors loan,tax liabilities and me! Accounts will be finalised Jan '15. Appreciate your views.

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