Hi,
I have a Ltd company client who owns a small commercial unit that receives rental income.
Do we have to adjust the company accounts each year to take effect of any increase or decrease in the valuation of the property?
Or would the movement in value of the property only be reflected on the sale of the property?
Thanks
Matt
Replies (9)
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Once upon a time
In a far off place, accountants used to go to accounting school, before being unleashed on an unsuspecting public, and they learned all about these mythical beasts called accounting standards.
Nowadays in the UK, folk just cannot be arsed.
It has to be valued but the valuer does not have to be external. In other words the directors can do it themselves.
The accounts have to disclose the identity of the valuers.
That is a relief
For one awful moment there I thought that perhaps it was what SSAP 19 had said in November 1981.
SSAP 19
For one awful moment there I thought that perhaps it was what SSAP 19 had said in November 1981.
I am pretty sure it was in SSAP 19 all that time ago. The FRSSE just repeats the same provisions. Certainly there is nothing new about it as far as I am aware.
If, however, your company is a micro-entity, as defined, and it prepares and files micro-entity accounts, then not only does it not have to revalue the property, it would be illegal to do so.